Statoil is planning to drill two exploration wells in the Flemish Pass Basin east of Newfoundland later this year.
The Norwegian energy giant’s announcement Tuesday builds upon a light oil discovery in 2013 in the Bay du Nord offshore reservoir, about 500 kilometres northeast of St. John’s, N.L.
The drilling program comes two months after Statoil sold off all of its oilsands operations to Athabasca Oil Corp.
Statoil is a major player in Newfoundland’s offshore oil sector.
It has a nine per cent stake in the Hebron project, a five per cent share in Hibernia and a 15 per cent stake in Terra Nova.