Canada's high Arctic draws new interest

Jan. 1, 2001
Three international companies have formed a joint venture to explore the Mackenzie Delta-Beaufort Sea region of Canada's Arctic.

Three international companies have formed a joint venture to explore the Mackenzie Delta-Beaufort Sea region of Canada's Arctic.

Chevron Corp., Burlington Resources Inc., and BP plan to build significant production and reserves to meet growing North American demand for natural gas.

Meanwhile, Canada's new Nunavut Territory opened a large part of its Arctic lands to oil and gas nominations.

Pres. Tim Holt said BP Canada plans to direct considerable resources to the Mackenzie Delta-Beaufort area the next few years. The group plans seismic work this winter and a drilling program in 2002.

Chevron Canada and BP Canada will take a 50% interest in 471,386 acres held by Chevron, and Chevron and BP will take one-third interests in 360,761 acres Burlington Canada acquired in 1999. The companies also have an existing partnership on another 182,851 acres.

BP is already involved with plans to produce an estimated 35 tcf of gas on the Alaska North Slope. BP has a one-third interest in reserves there. BP, ExxonMobil Corp., and Phillips Petroleum Co. are involved in a $75 million study of a pipeline from Alaska through Canada to southern markets (OGJ Online, Dec. 6, 2000). Some analysts say a pipeline from the Arctic won't be built before 2006.

In the Arctic Islands, the Northern Oil and Gas Directorate, Hull, Que., said it will accept nominations until Jan. 29 for Nunavut tracts in a large call area north of 75° N. Lat. If lands are nominated, in February 2001 it will invite companies to bid for exploration licenses.

The directorate said discovered oil in the Arctic Islands represents 5%, and gas 15%, of remaining discovered recoverable resources in Canada. It said recent estimates are that the Arctic has 10% of the nation's conventional oil resource (discovered plus potential) and 23% of the gas.

The call area includes all of the Sverdrup basin, site of 19 discoveries during 1969-85, the directorate said. Those include a major gas field at Drake Point and Bent Horn oil field. Bent Horn, on Melville Island, produced 43° gravity sweet crude from a Devonian reef during 1985-96. A group led by the former Panarctic Oils Ltd. shipped that oil by tanker in summers to a refinery at Montreal.