By Upstream staff
Royal Dutch Shell is seeking a partner to farm-in to its 20% stake in the Orphan basin exploration play off Newfoundland.
The successful bidder would pay drilling costs in return for an interest in the properties.
“We are simply looking to see if there are parties interested in the cost and risks of our interest in the next Orphan well,” said a Shell spokesman.
Shell Canada owns a 21,250 square kilometer (8205 square mile) block in the basin located off the east coast of the Canadian province. Chevron holds 50%, while ExxonMobil and Imperial Oil each have 15%.
The partners have already drilled one well at the play at a cost that some reports have pegged at more than C$200 million ($202 million), while a second is expected to be drilled this year. Water depths in the region range from 1500 metres to 3000 metres (0.93 to 1.9 miles).
The Newfoundland government expects that the basin could yield fields containing more than 1 billion barrels of oil, Reuters reported.
05 March 2008 16:18 GMT | last updated: 05 March 2008 16:28 GMT