From Houston (BN): In the latest Newfoundland-Labrador offshore auction, Statoil doubled down on Flemish Pass Basin.

The Norwegian operator committed $600 million to win all or part of six tracts around its Mizzen (SEN, 32/14), Harpoon (32/14) and Bay du Nord (32/14) discoveries, in 1,100 m water depths, about 500 km east-northeast of St. John’s.

Winners in the auction are those who promise to spend the most on exploration in the first nine years, and Statoil bet really big for one tract, committing $423.2 million for a 100% interest in NL 15-01-09.

The tract lies immediately southeast of Mizzen (discovered in 2009) and Harpoon and Bay du Nord (found in 2013).

Statoil was a partner in bids for five of six other tracts awarded. Statoil’s next biggest bets were in partnership with BP and Exxon Mobil to win two tracts northeast of Mizzen; Statoil put up 34% and BP and Exxon Mobil 33% each for NL 15-01-06, which went for $225.2 million, and for NL 15-01-07, which dealt for $206.3 million.

In smaller ventures, Statoil (35%) partnered with Chevron (35%) and BG (30%) in offering $43.2 million for NL 15-01-02, west of Mizzen.

Statoil joined 50:50 with BP to offer $35.1 million for NL 15-01-08, northeast of Mizzen. And Statoil (40%) teamed with Exxon Mobil (35%) and BG (25%) to win NL 15-01-05 for $11 million. The tract lies due north of Mizzen.

In other bidding, Nexen won 100% of NL 15-01-10, south of Mizzen, by promising to spend $261 million. C-NLOPB offered four other tracts that attracted no bids.

Statoil also ventured into Nova Scotia’s offshore auction, winning two tracts for a total work commitment of $82 million.

The tracts (NS15-1 Parcels 1 and 2) lie about 250 km south of Halifax. Seven other tracts offered by Nova Scotia’s offshore oil board attracted no bids.

Meanwhile, Statoil said it is giving up on Alaska and closing its office in Anchorage.

Tim Dodson, executive vice president for exploration, cited the current outlook for oil prices and Shell’s disappointing results at Burger J (32/15) earlier this year.

Statoil will exit 16 operated leases and give up interests in 50 other leases operated by ConocoPhillips. The leases, all in the Chukchi Sea, were awarded in the 2008 Alaska offshore lease sale and expire in 2020.

Offshore