Canada Has Approved Equinor’s Massive Offshore Oil Discovery

offshore exploration

On Friday, a Canadian offshore oil regulator announced that it had granted approval for a major discovery made by Equinor ASA off Canada’s Atlantic coast.

Oil corporations around the world are spending billions on offshore drilling despite the fact that it is more expensive than onshore production in terms of both initial investment and ongoing operating costs. In addition, their huge scale allows them to produce fewer emissions per barrel, but still contributing to air pollution.

Norway’s Equinor is very close to making a decision on whether or not to develop its Bay du Nord project offshore of Newfoundland and Labrador after growing interest in the region due to rising oil prices in the past year.

The latest Cappahayden K-67 discovery is projected to contain 385 million barrels of recoverable oil, according to the Canada-Newfoundland and Labrador Offshore Petroleum Board.

According to the Canada Energy Regulator, once an exploration company discovers oil and gas, it must apply for a significant discovery license in order to maintain its exclusive production rights in the region. To begin extracting oil or gas, companies must first submit a commercial discovery declaration to the appropriate authorities.

According to the license, Equinor owns 60% of the discovery and BP PLC holds 40%.

Original source material for this article taken from here

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Written by Olivia Woods

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