(Adds size of reserves in third paragraph.)
Jan. 12 (Bloomberg) -- Chevron Corp., Statoil ASA and Repsol YPF SA agreed to jointly drill oil exploration wells off Canada’s Arctic and Atlantic coasts.
The Canadian division of San Ramon, California-based Chevron will work with Stavanger, Norway-based Statoil and Madrid-based Repsol to explore for oil in the Orphan Basin off the coast of Newfoundland, with Chevron controlling 65 percent of the project, the U.S. oil and gas producer said today in a statement.
The companies will also cooperate on drilling wells in the Flemish Pass Basin, while Chevron and Statoil will cooperate in the Beaufort Sea.
Newfoundland holds more than a quarter of Canada’s conventional oil reserves, according to the website of the government of Newfoundland. Offshore oil production has made the province the fastest-growing economy in Canada, according to the U.S. Geological Survey.
In the Arctic, including parts controlled by Canada, companies are eyeing oil reserves that may be as large as 90 billion barrels, the U.S. Geological Survey said in 2008.
“Strengthening our position in the Flemish Pass Basin and obtaining early entrance to the Orphan Basin and Beaufort Sea provides us access to large potential resources,” said Statoil Vice President Tim Dodson in the statement.
--Editors: Charles Siler, Tina Davis
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