CALGARY�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 say they plan to build significant production and reserves to meet growing North American demand for natural gas.
BP Canada Pres. Tim Holt said the area is a key piece of the company�s Canadian growth strategy, and that BP intends to direct considerable resources over the next few years.
The group said seismic work is planned this winter and a drilling program is scheduled for 2002.
Under the agreement, Chevron Canada and BP Canada will take a 50% interest in 471,386 acres held by Chevron, and Chevron and BP will take on-third interests in 360,761 acres Burlington Canada acquired in 1999. The companies also have an existing partnership on 182,851 acres of other land.
BP is already involved with plans to produce an estimated 35 tcf of gas on 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.