Shell hits dust in exploration well off Canada

Oil major Royal Dutch Shell has failed to find commercial hydrocarbons at its first exploration well in the Shelburne Basin offshore Canada. 

The Shelburne Basin deepwater exploration project is located approximately 250 kilometers offshore, south of Halifax, Nova Scotia.

Shell submitted a successful bid for the area in 2012, and the Shelburne Basin Venture Exploration Drilling Project got an approval in June 2015. The initial phase of Shell’s exploration campaign involves the drilling of two exploratory wells.

Joint venture participants are operator Shell Canada (50 percent), ConocoPhillips Canada East Coast Partnership (30 percent), and Suncor Energy (20 percent).

According to Suncor’s statement on Wednesday, the drilling of the first exploration well has been completed and the well is non-commercial.

As a result, in the third quarter of 2016, Suncor said it will write off its share of the cost of the well which, under the commercial terms of Suncor’s farm-in agreement, is expected to be approximately $105 million (after-tax).

In order to undertake its $1 billion exploration program in the Shelburne Basin, Shell hired Stena Drilling’s Stena IceMAX drillship and the vessel arrived at its location in October last year.

In March 2016, while working on the first exploration well named Chesire, Shell experienced an operational issue as a piece of equipment connecting the rig to the well fell to the seabed due to severe weather. The incident caused a delay in drilling operations and the company was permitted to resume drilling several months later but with restrictions.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Offshore Energy Exhibition and Conference (OEEC)

The three-day event features an exhibition where over 600 companies will showcase their products and services…

read more >

Argentina Oil and Gas Expo 2019

The Argentine Oil and Gas Institute (IAPG) organizes the Argentina Oil & Gas Expo bringing together the most…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Africa Oil & Power 2019

The Africa Oil & Power conference will bring together an elite class of ministers and senior-level government…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply