Offshore Projects and Exploration in NL | atlanticcanadaoffshore.ca

Offshore Projects and Exploration in NL

Current Projects

Four oil projects produce offshore Newfoundland and Labrador:

  • Hibernia, operated by Hibernia Management and Development Company Ltd.
  • Terra Nova, operated by Suncor Energy
  • White Rose, operated by Husky Energy
  • Hebron, operated by ExxonMobil Canada

 

Quick Facts

  • $5.4 billion – in industry spending on exploration and development in 2016
  • $920 million – estimated payments to the province from offshore oil production in 2017/18
  • 16% – share of total provincial revenues from oil royalties in 2018/19
  • 221,000 – barrels per day of oil produced in 2017
  • 5,000 people – directly employed (thousands more indirectly)
  • 600 supply and service companies – support the industry
  • $45 billion – cumulative expenditures in NL between 1995-2017
  • $21 billion – cumulative royalties paid to the Government of NL from 1998-2017
  • $506 million – spent on R&D and education and training in NL

 

Growth Potential and Exploration Activity

The government of Newfoundland and Labrador estimates Newfoundland and Labrador’s offshore resource potential at more than six billion barrels of oil and 60 trillion cubic feet of natural gas.

The key to unlocking this potential is exploration activity, which could lead to new discoveries and future developments. The Newfoundland and Labrador offshore has seen significant exploration activity in recent years, and there is evidence to support its continuation and expansion. For example, exploratory work in Newfoundland and Labrador’s Flemish Pass basin resulted in one of the largest discoveries in the world at that time by Statoil and Husky Energy. Exploration continues in the Flemish Pass basin and exploration programs are also ongoing in the Jeanne d’Arc Basin, the basin where all four currently producing projects are located.