GDF SUEZ has signed its official entry in two exploration gas and oil licenses with the Greenlandic Ministry of Industry and Mineral Resources. The consortium between GDF SUEZ, Shell (operator) and Statoil has been granted two exploration offshore licenses in Blocks 5 and 8, located in the Baffin Bay, west of Greenland. GDF SUEZ’s share in each of the two licenses is 26.25%.
Shell, GDF SUEZ and Statoil had jointly applied end of April 2010 for 2 out of the 14 licenses in the Baffin bay licensing round. Nunaoil, the National Greenlandic Oil Company, will have a carried interest of 12.5% in each of the licenses during the exploration phase.
Blocks 5 and 8 cover around 20,000 km². The total exploration period of the license will last ten years, until 2020. During the first phase (2010-2014), seismic surveys will be performed, first drilling is envisaged in the second phase (2015-2017). In case of success, the exploitation phase will be granted for minimum 30 years.
Jean-Marie Dauger, GDF SUEZ Executive Vice President in charge of the Global Gas and LNG Business line, comments: “This is a significant move for GDF SUEZ in the highly prospective Arctic zone, which contains 22% of world yet-to-find potential of which 74% is gasi. As one of the leaders in natural gas and LNG, GDF SUEZ will be a key partner to this project.”
This acquisition could in the long term allow GDF SUEZ to renew its resources and to develop its LNG position.
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Source: GDF SUEZ , December 9, 2010;