28 March 2007

Exploration slowdown offshore NL

From the National Post, another story on the decision by a consortium of oil companies to postpone further exploration in the Orphan basin until 2008.

The major reason for this decision is the availability of the rig Eirik Raude given other demands on the rig in the Gulf of Mexico. It isn't about the investment climate, as Paul Barnes of the Canadian Association of Petroleum Producers told the Post.

But, as ExxonMobil's Alan Jeffers notes, the experience in the Orphan Basin demonstrates that working offshore Newfoundland "really does require high levels of technical and financial capability to explore for and produce in those harsh environments."