Oil firms announce East Coast exploration plans

A trio of oil companies have inked agreements for exploration in the Newfoundland offshore.

The details were announced Thursday by Chevron Canada Ltd., Statoil Canada Ltd. and Repsol E&P Canada Ltd.

The companies plan to drill an exploration well in the Orphan Basin this year, in deep water more than 400 kilometres northeast of St. John's.

Chevron will be the operator with a 65 per cent equity interest. Repsol will have 20 per cent and Statoil will have 15 per cent.

Chevron, Statoil and Repsol were also recently named the successful bidders on two exploration parcels in the Flemish Pass basin.

Statoil will be the operator with a50 per cent equity interest. Chevron has 40 per cent and Repsol has 10 per cent.

"These agreements significantly strengthen our exploration position in Atlantic Canada," Chevron Canada president Jeff Lehrmann said in a press release.