Norwegian oil and gas company Statoil announced that it has discovered oil in the Bay du Nord prospect in the Flemish Pass.
The Bay du Nord prospect is located on Canada’s east coast, about 500 kilometers off of St John’s, Newfoundland.
The discovery in Bay du Nord is 20 miles south of their Mizen prospect, which Statoil estimates holds between 100 and 200 million barrels of oil.
Statoil has not yet commented on estimates for Bay du Nord.
In 2012, the Newfoundland area produced 197,000 barrels of oil, 69,000 barrels less than 2011. In an effort to reverse declines, Newfoundland is seeking to attract more offshore exploration companies. In addition to expansion by ExxonMobil and Statoil, Canadian officials have also meet with Chinese firms CNOOC and Sinopec.
Statoil is a fully integrated Norwegian petroleum company formed in 2007 by the merger of Statoil and oil and gas division of Norsk Hydro. The company changed its original post-merger name of StatoilHydro to Statoil in 2009.
Other major operators in the area include ExxonMobil, who have a $14 billion ongoing development project of the offshore Hebron oil field. The Hebron project is expected it to yield 150,000 barrels per day beginning in 2017.