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Originally Posted by q12
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These are the interesting quotes from the article:
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BP has successfully bid $1.04 billion for exploration rights on four parcels.
The total bid amount is a new record for the offshore industry in the Atlantic region, the petroleum board said. BP’s $638-million offer for one parcel is also a new regional record for a single lease.
The Dutch-based supermajor agreed in January to ante up $970 million for four other blocks.
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These are drilling rights, which total almost $2 billion for 2012. This amount should be going into NS provincial coffers upfront.
But this quote from the NS premier doesn't make much sense:
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Dexter said he expects the $2 billion Shell and BP have committed to spend will translate into millions for provincial coffers and create new jobs.
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Shouldn't that be a $2 billion financial injection into NS provincial coffers for calendar year 2012 as a result of these drilling rights?
Or do things work differently in NS v. Alberta and BC. To put things into perspective, BC's record year for drilling rights was 2008 when $2.66 billion was garnered and flowed directly into the BC provincial treasury. On top of that, ~$7 billion is spent every year on field development.
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BP and Shell must pay a 25 per cent deposit, which is non-refundable.
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Strange. 100% of drilling rights in both BC and AB are paid upfront into their respective provincial treasuries.
Nevertheless, these big players would not be spending these funds for drilling rights in NS if they were not confident in their endeavours.