Marathon expands exploration position offshore Nova Scotia

Petroleum News Alaska Staff

Marathon Canada Ltd., a subsidiary of Marathon Oil Co., said Nov. 7 that it was the high bidder on two exploration tracts offshore Nova Scotia, part of the latest offshore bid round by the Canada-Nova Scotia Offshore Petroleum Board.

Marathon said it now has five exploration licenses offshore Nova Scotia, some 1.92 million acres.

Marathon bid alone on Parcel 5, securing the license with a high bid of $176.7 million Canadian (approximately $115 million U.S.). On Parcel 6, Marathon and two co-venturers submitted a high bid of $193.6 million Canadian (approximately $125 million U.S.). Marathon, holding a 50 percent interest, with be operator; Murphy Oil Co. Ltd. and Norsk Hydro Canada Oil & Gas Inc. each hold a 25 percent interest.

The bids represent estimated expenditures for exploration activities during the initial five-year period of a nine-year license.

“We are excited that our bids were accepted for these new exploration licenses and that we are able to strengthen our position in an area we see as having great potential,” said Phil Behrman, senior vice president of worldwide exploration for Marathon.

The Annapolis well will be drilled this month some 220 miles south of Nova Scotia in 5,700 feet of water. Marathon said it will be drilled in the deepest water to date offshore Nova Scotia and take approximately 60 days to drill.

Marathon has contracted the West Navion, a modern drillship specifically designed to operate in ultra deepwater and in harsh weather environments such as those experienced in the North Atlantic. Marathon is operator of the Annapolis well with a 30 percent interest. Other members of the consortium are PanCanadian Petroleum Ltd., a subsidiary of PanCanadian Energy Corp., (see related story on page 7 of this issue), Norsk Hydro Canada Oil & Gas Inc. and Murphy Oil Co. Ltd.