|
Canadian Beaufort bids hailed by NWT Industry Minister Bell
Gary Park For Petroleum News
Northwest Territories Industry Minister Brendan Bell takes the staggering Beaufort Sea land bid by Imperial Oil and ExxonMobil Canada “at face value as a genuine commitment” to extend Canada’s Arctic exploration offshore and north of the 70th parallel.
While some observers have suggested the joint-venture partners are grooming their northern assets for eventual sale, Bell told Petroleum News that without talking to the two companies about their intentions he welcomes the indication they are prepared to put “significant resources” into the area.
The successful bid of C$585 million in work commitments “further reinforces that we (Canada’s North) have an incredible future ahead of us,” Bell said.
“We have always maintained the Beaufort is similar to the Gulf of Mexico, where they have under-promised and over-delivered … the further they go the more they find,” he said.
Bell not concerned about target Bell is not concerned whether the joint venture is targeting oil or natural gas, noting that the history of drilling in the region shows that discoveries have been the reverse of what was expected.
For now, he is “thrilled and absolutely surprised” by the size of the bid, along with the other Beaufort work commitments by ConocoPhillips Canada and Chevron Canada Resources.
He said it gives momentum to the Beaufort exploration program by Devon Canada, whose C$60 million, Paktoa C-60 well in the 2005-06 winter was the Canadian Beaufort’s first since 1989.
Bell credited that effort with “single-handedly” sustaining business in the Mackenzie Delta area.
He said the Imperial-ExxonMobil and ConocoPhillips ventures are proof that corporate partners in the Mackenzie Gas Project are “prepared to do business” in Canada’s North despite the frustrations they have experienced in the MGP regulatory process.
| 