US supermajor ExxonMobil and state-owned QatarEnergy have won a bid for a key exploration block offshore the Canadian province of Newfoundland and Labrador.
The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced on 2 November that five successful bids were received in its NL22-CFB01 Eastern Newfoundland Region Call for Bids, delivering more than $238.1 million in work commitments covering more than 1.2 million hectares.
ExxonMobil and QatarEnergy's winning bid of $181.6 million for the Parcel 8 deepwater acreage in the Orphan Basin region covers 267,686 hectares. ExxonMobil will operate the offshore block that it holds a 70% interest in, while QatarEnergy holds the remaining 30% interest.
HE Minister of State for Energy Affairs and QatarEnergy CEO Saad bin Sherida Al Kaabi said in a release posted on the Qatar News Agency that the company looks “forward to maturing the lead prospect's potential, testing an exciting play within a transparent and stable regulatory environment."
Parcel 8 lies in water depths of 2500 to 3000 m and covers an area of approximately 2700 km2. Entry to the Parcel 8 license is subject to customary government approvals, according to the C-NLOPB.
While Parcel 8 secured the highest bid amount in the call, the remaining four parcels brought in a combined $56.5 million from BP and Equinor.
SUCCESSFUL BID RESULTS FOR CALL FOR BIDS NL22-CFB01
| Parcel | Hectares | Successful Bidders | Successful Bid Amount |
| 8 | 267,686 | ExxonMobil Canada Ltd. (70%) QPI Energy Canada Ltd. (30%) | $181,575,321 |
| 12 | 266,079 | BP Canada Energy Group ULC (100%) | $16,500,000 |
| 26 | 252,271 | Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd. (40%) | $15,200,000 |
| 27 | 273,706 | Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd. (40%) | $14,000,000 |
| 28 | 163,165 | Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd. (40%) | $10,800,000 |
| Total | 1,222,907 | $238,075,321 |
