“We believe in the long-term petroleum potential of the Flemish Pass and our blocks, and hope to take our place amongst the operators that have drilled successful wells,” Seifreid Joiner, Nexen’s vice-president of exploration and appraisal in the Americas, said after speaking at the Newfoundland and Labrador Oil and Gas Industries Association (Noia) 40th annual conference on Wednesday.
“We’d like to be here for the long term to drill a campaign of wells, make some discoveries and have some developments.”
Nexen, a wholly owned subsidiary of the state-owned China National Offshore Oil Corp. (CNOOC) with significant offshore projects in places such as the North Sea and the Gulf of Mexico, has started hiring technical staff and is well into the environmental assessment application process.
Joiner says the company is working hard to establish local relationships with suppliers, and with government and industry regulators, and made sure to have a “significant presence” at this week’s conference to aid in that effort.
The company opened an office in downtown St. John’s and is refurbishing a more permanent home for its operations here.
“Even though it’s an exploration office, it’s still a foothold and it allows us to have regular interaction with all the key stakeholders that are involved in the petroleum sector within the province,” Joiner said.
Since acquiring and processing its first batch of data on its 2016 block from a 3-D seismic study conducted by TGS and PGS last summer as part of a multi-client shooting, Joiner says, the company recently received the pre-stack time migration, and the pre-stack depth migration is on its way.
“Those three products together will allow us to go in and successfully map all of the opportunities that are available on the block,” he said.
“We are looking at perhaps a three-well drilling campaign that could begin as early as 24 months from now, depending on the pace of regulatory approvals.”
The second block will be mapped this summer, again by TGS and PGS, with the goal of having all seismic processes completed by this time next summer, he said.