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Hands across the border in Atlantic Canada
Gary Park
Canada and France will work together to manage exploration and development of oil and natural gas offshore Newfoundland and Nova Scotia and the French territorial islands of St Pierre and Miquelon.
An agreement signed by the two governments in mid-May is the “result of negotiations characterized by a tremendous spirit of co-operation,” said Canada’s Foreign Affairs Minister Pierre Pettigrew.
Natural Resources Minister John Efford said the partnership will facilitate “sustainable development of petroleum resources” in the Atlantic Canada offshore.
Under the pact, Canada and France will exchange information on industry activities within a clearly defined maritime area.
It also includes mechanisms to share resources and benefits from any trans-boundary field and to negotiate exploitation agreements for specific fields.
The agreement gives added momentum to opening up the Laurentian sub-basin after a 38-year jurisdictional dispute between Newfoundland and Nova Scotia was settled three years ago. The 3,000 square mile sub-basin has estimated resources of 8-9 trillion cubic feet of gas and up to 700 million barrels of oil. ConocoPhillips might drill in 2007 ConocoPhillips and ExxonMobil Canada share a 1,250-square mile exploration permit in the adjoining French waters where seismic has been gathered and a well was drilled in 2001 by the two companies, plus Murphy Oil.
The Bandol No. 1 well cost about C$30 million and was abandoned as a dry hole.
But ConocoPhillips has indicated it might drill again in 2007.
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