Feeds:
Posts
Comments

Posts Tagged ‘Newfoundland’

Shell goes big offshore Newfoundland

Posted in Canada, Offshore Energy - General, tagged , , , , , , on November 11, 2026| Leave a Comment »

All of the new licenses are among the beige tracts. The green tracts are existing exploration licenses. The purple tracts are “significant discovery licenses.” The red line represents the 200 nautical mile boundary.

While the entire US Atlantic remains off-limits to oil and gas leasing, Canada-Newfoundland offshore areas are open for business. This month marks the 29th anniversary of production offshore Newfoundland.

The latest bidding round was highly successful, with Shell leading the way. The total of 10 successful bids is the largest number for the province since 2000. All of the acquired parcels are in the Eastern Newfoundland Area identified above.

Note that the 2 new Equinor licenses are close to their Bay du Nord “significant discovery licenses.” Also note the size of the the parcels as compared to Gulf of America lease blocks which are only 5760 acres or 2331 hectares.

Successful Bid Results for Call for Bids NL26-CFB01
(Eastern Newfoundland Region)
ParcelHectaresSuccessful BiddersSuccessful Bid Amount
(work commitments)
1268,608Shell Canada Limited (100%)$50,101,000.00
3270,830Shell Canada Limited (100%)$20,101,000.00
4266,671Shell Canada Limited (100%)$20,101,000.00
5271,992Oil and Gas Corporation of NL (100%)$10,000,000.00
6272,566Shell Canada Limited (100%)$50,101,000.00
7273,029Oil and Gas Corporation of NL (100%)$10,000,000.00
8273,579Shell Canada Limited (100%)$50,101,000.00
9187,675Shell Canada Limited (100%)$20,101,000.00
1141,933Equinor Canada Ltd. (70%)Shell Canada Limited (30%)$15,000,000.00
1281,094Equinor Canada Ltd. (70%)Shell Canada Limited (30%)$15,000,000.00
Total2,207,977$260,606,000.00

If like me, you are curious about the “Oil and Gas Corp. of NL,” the successful bidder on 2 parcels, OilCo (as they are known) is a State owned company. Their news release explains the OilCo strategy:

OilCo will invite companies to partner on these licences through negotiated farm-down arrangements. The model allows companies to engage throughout the year rather than wait for a scheduled land sale, creating a clearer path from technical evaluation to acreage access. OilCo’s commercial objective is to negotiate a 10 per cent back-in at project sanction, with no OilCo funding of exploration drilling. Through direct negotiations, OilCo will seek the best value for Newfoundlanders and Labradorians while encouraging investment and advancing exploration activity.

If you can drill and produce safely in Newfoundland’s hyper challenging offshore environment, as has been demonstrated (100% safety management commitment required), you can safely drill and produce anywhere.

Read Full Post »

Small synthetic mud spill during well completion operations at West White Rose platform, offshore Newfoundland

Posted in accidents, Canada, Offshore Energy - General, tagged , , , , , , on November 4, 2026| Leave a Comment »

West White Rose platform, a concrete tower 350 km offshore Newfoundland in 120 m of water. Production, expected to begin late this year, will be transported to the Sea Rose FPSO.

The C-NLOER does a very good job of informing the public about offshore incidents, even those that are relatively minor, in a timely manner. The information below is excerpted from their report.

On October 29, 2026 Cenovus reported a spill of approximately 1,400 litres (370 gallons, 8.8 barrels) of synthetic-based mud (SBM) from the West White Rose Platform.

The release occurred during completions operations through the cuttings discharge chute, approximately 63 metres below sea level. No indication of the release was observed at the sea surface from the platform or the standby vessel, which conducted a sweep of the area.

As a precaution, operations were suspended on the West White Rose on October 29 while Cenovus investigated the circumstances surrounding the release. Operations resumed the next day with measures in place to prevent recurrence. C-NLOER Environmental Protection and Well Operations staff were engaged by Cenovus prior to the resumption of operations and are continuing to monitor Cenovus’s investigation and response.

SBM is a dense fluid used during drilling and well operations. It is a mixture of synthetic base fluid, a food-grade oil, and various weighting agents and additives. The synthetic base fluid has very low toxicity in marine environments, with the potential to biodegrade when sufficient oxygen is present. Because of its density, SBM generally sinks and settles, with effects due to the seabed coverage near the release, limited to within tens of metres of the discharge location.

Read Full Post »

World Bank flaring data for offshore producers

Posted in flaring and venting, Norway, Offshore Energy - General, Regulation, tagged , , , , , , , , , , on July 16, 2026| 1 Comment »

World Bank global flaring estimates are now derived from 3 satellites carrying NOAA VIIRS detectors. The increased number of observations improves the precision and accuracy of the flare locations and volume estimates.

The World Bank (WB) Global Gas Flaring Tracker is the only worldwide flaring data source. Offshore and onshore data are segmented, so offshore flaring can be considered separately for each country.

The WB estimates that 21600.03 million cu m (762.5 bcf) of gas were flared at offshore locations worldwide in 2025. This is an increase from 2024 when the total offshore flaring volume was 21159.91 million cu m.

The flaring totals for prominent offshore producers are entered in the table below. Also included are the largest offshore flares for each country.

Unsurprisingly, Norway led the pack in minimizing offshore flaring. Their total of 36.11 million cu m (1.3 bcf) is very impressive for such a large producer. The US offshore total of 160.95 cu m (5.7 bcf) is also quite respectable relative to production.

At the other end of the scale are Iran – 3329 million cu m (118 bcf), Nigeria – 2566 (91 bcf), Angola – 2300 (81 bcf), and Mexico 2068 (73 bcf). These 4 countries accounted for nearly half of all 2025 offshore flaring. They were also massive offshore flarers in 2024: Iran – 3753 million cu m, Nigeria – 2867, Angola – 2040, and Mexico – 2223.

If both onshore and offshore flaring are considered, Iran flared 29931 million cu m in 2025. That equates to 1.057 trillion cu ft!

2025 WB flaring total
million cu meters		largest flarelargest flare volume
Angola2300.26Lombo East862.02
Australia268.36Santos61.89
Brazil969.16Albacora Leste118.93
Canada145.12Terra Nova95.83
China535.56Weizhou 12-168.26
Congo, Rep.788.98Kitina384.12
Gabon368.91Tchatamba Marin37.46
Ghana351.81Sankofa East184.97
Guyana227.38Yellowtail164.06
Indonesia292.16Belida30.84
Iran3329.19Foroozan1360.09
Libya313.78Bouri74.07
Malaysia1459.32Kasawari205.8
Mexico2067.62Akal386.44
Nigeria2565.88Oso308.37
Norway36.11Balder6.38
Qatar688.19Ras Laffan LNG54.65
Russia227.27Yuri Korchagin82.07
Trinidad87.66Atlantic LNG53.23
UK234.08Penguins22.94
US160.95NA*22.77
*The WB lists the field name for the largest US flare as NA. The lat/long for the Whale deepwater platform in the Western Gulf matches the identified flare location (26.22 lat., -94.67 long.)

The WB tracker identifies the Gulf of America facilities with the highest flaring volumes. The 2025 list is pasted below. Repeat top ten Gulf flarers from 2024 were Vito (14.55 million cu m in 2024), Pompano (11.68), and Lucius (5.72).

The WB lists the field name for the largest US flare as NA. The lat/long for the Whale deepwater platform in the Western Gulf matches the identified flare location (26.22 lat., -94.67 long.)

Per the WB tracker, the Terra Nova FPSO, offshore Newfoundland, was the top North American offshore flarer by a considerable margin (data for Canada below). Terra Nova was also the top flarer in 2024 (95.56 million cu m).

The location of the only flare identified offshore California corresponds with that of the Dos Cuadras field in the Santa Barbara Channel. The estimated 2025 flaring volume was 0.10 million cu m.

The WB flaring tracker is an excellent data source, but doesn’t capture vented gas and likely understates the total volume flared. The WB estimated that 160.95 million cu m (5.68 bcf) were flared at US offshore facilities in 2025. This compares with the 9.7 bcf (flaring and venting) and 8.0 bcf (flaring only) totals derived from ONRR data (chart below). The flaring difference is not surprising given that the WB numbers are dependent on satellite imagery and the ONRR data are from mandated/audited production reports. A previous comparison also showed that the WB flaring estimates are significantly lower than the ONRR numbers. From a regulatory oversight perspective, this is rather reassuring given that the reverse (WB>ONRR) would imply serious reporting issues.

Read Full Post »

Newfoundland: Hibernia keeps on chugging!

Posted in Offshore Energy - General, Canada, tagged , , , , , on June 11, 2026| Leave a Comment »

I had the pleasure of visiting the Hibernia gravity-based structure while it was still under construction in Bull Arm, Newfoundland (photo). This pioneering facility, where Newfoundland’s offshore production began in Nov. 1997, continues to impress.

In April, Hibernia posted its highest monthly production since August 2021 – 3.1 million barrels or 103,000 bopd. Exxon attributes the production growth to a recent 6-well drilling program. The Hibernia field has produced more than double the original resource estimate of 520 million barrels.

Offshore Newfoundland’s total April production, increased to 9.4 million barrels, with a sharp increase in the value of production (see figure below). This is the highest monthly production level for the province since March 2020, and the second highest monthly production value on record, only behind July 2008.

Meanwhile, production at Hebron, another Exxon GBS structure, has reached record levels this year (chart below). The facility is producing more than 5 million bbls/month.

Finally, Suncor’s decision to refurbish the Terra Nova FPSO and resume production may be paying off given production levels of ~1 million bbls/month.

Read Full Post »

(1) No bids for tracts in the Eastern Newfoundland or Labrador South regions; (2) C-NLOER incident announcements

Posted in accidents, Canada, energy policy, tagged , , , on November 14, 2025| Leave a Comment »

The Canada-Newfoundland Labrador Offshore Energy Regulator (C-NLOER) informs that once again no bids were received for tracts in the Eastern Newfoundland or Labrador South regions. According to this article, the outcome (no bids)was the same from 2021-2024.

Difficult operating conditions, high costs, and relatively modest oil price projections are no doubt factors contributing to the absence of bids. Energy NL has also pointed to the “complex, inconsistent and burdensome regulatory system” as a contributing factor.

Newfoundland’s newly elected Premier, Tony Wakeham, has said his Progressive Conservative Government will advocate for the cancellation of the emissions cap as it is a cap on production. He also supports incentives for offshore oil and gas projects such as an investment tax credit or the former Petroleum Incentive Program and indicated he would work with Energy NL to review incentives that could be implemented provincially.

The C-NLOER is committed to “review its land tenure system in collaboration with governments and others, to identify opportunities to enhance competitiveness in the Canada-Newfoundland and Labrador Offshore Area.”

On a separate policy matter, C-NLOER is applauded for announcing offshore safety/environmental incidents, including significant near misses, without delay. In the US, you have to scour BSEE investigation reports to find out about significant incidents or wait a year or more until the incident table is updated. This is inexcusable!

Read Full Post »

IRF Conference – St. John’s, Newfoundland – Oct. 9-10

Posted in Canada, conferences, Offshore Energy - General, tagged , , , , , , on September 22, 2025| Leave a Comment »

The International Regulators’ Forum Offshore Safety Conference, Oct. 9-10 in St. John’s Newfoundland, has an impressive agenda focusing on safety through innovation. Among the topics that caught my eye:

  • Human Factors & AI
  • Managing New Tech with Old Regulations
  • Regulatory Sandboxes: Capture vs. Collaboration
  • How can AI and emerging technologies be used in risk management trending and operations?
  • Why are we not learning from accidents?
  • Breakthroughs in investigation techniques and sharing

The first IRF Conference was held 20 years ago in London followed by the 2007 conference at the Trump International Resort in Miami (little did we know 😀). More historical background.

The informed, diverse viewpoints about managing and regulating offshore operations sets these conferences apart from your typical professional events. The 2025 conference is highly recommended for those interested in offshore operations, risk mitigation, and regulatory policy.

Read Full Post »

Checking in on Newfoundland: production remains strong

Posted in Canada, Offshore Energy - General, tagged , , , , , , on March 3, 2025| Leave a Comment »

Offshore Newfoundland, a particularly hostile operating environment (“North Sea plus icebergs“), continues to be the only producing area in the North American Atlantic, a distinction that is unlikely to change for at least the next decade.

Production is holding firm and there was a nice bounce in December when 7.5 million barrels were produced (242,000 bopd ave.). December’s production was the highest since May 2022 and and was a respectable 57% of the May 2007 peak.

Most impressively, according to CNLOPB data, no fatalities or significant injuries occurred over the past 3 years.

The pioneering Hibernia platform (pictured above), where Newfoundland offshore production began in Nov. 1997, keeps chugging along at 60 to 80,000 bopd. The Hibernia field has produced more than double the original resource estimate of 520 million barrels. Very impressive!

Hebron, the current top producer, continues to produce 100,000+ bopd

The Terra Nova field contributed ~40,000 bopd in Dec., the highest output since production resumed in late 2023 after extensive downtime to refurbish the FPSO.

Production remained offline at the White Rose project, which was shutdown at the end of 2023 for refurbishment of the SeaRose FPSO. Production is expected to resume during the first quarter of this year.

Newfoundland production data:

Oil_ProductionDownload
graph_phDownload

Read Full Post »

Saturday marked the 43rd anniversary of the Ocean Ranger tragedy. Newfoundland remembers, so should we.

Posted in accidents, Canada, Offshore Energy - General, tagged , , , , , on February 18, 2025| Leave a Comment »

Details on the Ocean Ranger disaster, 15 Feb 1982

Read Full Post »

Bad news for Exxon and Newfoundland – Persephone well found “no evidence of commercial hydrocarbons”

Posted in Canada, Offshore Energy - General, tagged , , , , , on September 16, 2024| Leave a Comment »

We have been closely watching Exxon’s high potential Persephone well in Newfounland’s Orphan Basin. Unfortunately, Exxon has announced that the well failed to discover commercial hydrocarbons.

While exploration technology has improved significantly, the success rate for wildcat exploratory wells is still only about 30%. According to Rystad, only eight of the 27 high-impact wells drilled in 2023 resulted in commercial discoveries.

In baseball terms, the smaller independents are typically singles hitters, drilling development wells and gleaning reserves from established fields. The majors tend to be home run hitters. They swing hard and often miss, but when they hit, the rewards are great!

The search for deepwater elephants will continue.

JPT

Read Full Post »

Update on the high potential Orphan Basin well

Posted in Canada, drilling, Offshore Energy - General, tagged , , , , , on August 23, 2024| Leave a Comment »

To find the sole exploratory well being drilled in the vast North American Atlantic, you have to exit “wind-only” US waters, head NE to St. John’s, NL (advancing your watch by 1.5 hours 😉), and transit another 317 miles NE to the Stena DrillMAX working for Exxon in the Orphan Basin.

The latest (8/20/2024) CNLOPB report (below) is that operations are ongoing. The well was spudded 3 months ago. That is about all they can disclose without compromising confidentiality. Even seemingly innocuous information like the current and projected well depth provides the opportunity to speculate about geologic conditions and current well activities.

We can assume that there have been no safety or environmental incidents to date, because the CNLOPB does a good job of posting such information in a timely manner.

Previous posts on this well

Read Full Post »

Older Posts »