Scandoil.com

Oil companies pledge $190M to drill off Canada


Published Sep 16, 2008
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Petro-Canada ice-berg ice towing
courtesy Petro-Canada

Canadian oil companies Husky Oil and Suncor were the top bidders in a quietly held recent land sale offshore Canada’s oil-rich maritime provinces, local goverment has heralded.

The Canada-Newfoundland and Labrador Offshore Petroleum Board said successful bids on four parcels of land were good for $186,430,680. The 2007 Call for Bids gave exploration rights offshore for the following bids:

  • Husky Oil Operations Limited , $10,162,800 -Vulcan Minerals Inc. (50%), Investcan Energy Corporation (50%), $9,601,000 -Husky Oil Operations Limited (75%), Suncor Energy Inc. (25%), $120,166,880 -Chevron Canada Limited (100%), $ 46,500,000

The bids represent the exploration spending bidders commit to making during their first six years of a nine-year license.

The agreements convert to “rental” agreements upon “any significant discovery”.




   

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