BG Group Plc said on Sept. 28 it had acquired stakes in three exploration blocks off the coast of Canada's Newfoundland months before its planned merger with Royal Dutch Shell Plc (RDS.A).
The British oil and gas company bought from Spain's Repsol SA the nonoperated positions in the Atlantic basin, located around 200 km (124 miles) from St. John's, Newfoundland, it said.
"This provides the company with access to early stage exploration in a proven prospective basin ahead of the first well being drilled later this year," it said in a statement.
The value of the deal was not disclosed.
The three blocks are operated by Norwegian energy company Statoil ASA (STO).
Shell is on track to complete its proposed $70 billion acquisition of BG group in early 2016, but BG said it was "in line" with its strategic exploration focus to enter new basins.
Oil companies have sharply slashed exploration budgets over the past year in response to the halving of oil prices to below $50 a barrel since June 2014.
Shell said on Sept. 28 it is pulling out of exploration in Arctic waters off Alaska for the foreseeable future and could take a hit of up to $4.1 billion after failing to find enough oil.
Recommended Reading
Shipping Traffic Freezes Up in Port Waters After Baltimore Bridge Collapse
2024-03-26 - U.S. port of Baltimore traffic was suspended until further notice following a bridge collapse. At least 13 vessels expected to load coal were anchored near the port at the time of the incident.
What's Affecting Oil Prices This Week? (April 15, 2024)
2024-04-15 - While concerns about the stability of oil supply are increasing, Stratas Advisors does not expect oil supply to be disrupted – unless there is further escalation in the Middle East.
Cheniere, Cheniere Energy Partners Uplisted to NYSE
2024-01-31 - LNG producing companies Cheniere Energy and Cheniere Energy Partners are to begin trading on the New York Stock Exchange on Feb. 5.
Trans Mountain Pipeline Announces Delay for Technical Issues
2024-01-29 - The Canadian company says it is still working for a last listed in-service date by the end of 2Q 2024.
Tellurian Head Counters Rumors, Says Company is Focused on ‘Commercial Matters’
2024-01-29 - LNG development firm Tellurian is disputing rumors that the company is looking to sell following its hire of financial advisory firm Lazard.