Prospects of oil trapped in the deep waters
The provincial government awarded Petrofac with a contract to examine the prospects of oil trapped in the deep waters off the eastern Canadian coast.
Nova Scotia's government estimates there may be as much as 120 trillion cubic feet of natural gas and 8 billion barrels of oil offshore. Petrofac said the region is geologically similar to oil basins off the northwest coast of Africa, though reserves offshore Nova Scotia are thought to lie nearly 2 miles below the sea bed in mile-deep waters.
Craig Muir, a engineering consultant for Petrofac, said the contract could provide significant returns for the provincial government.
"The potential outcomes of this study are of strategic importance for the Nova Scotia government and a great step forward for Petrofac in the ultra-deepwater market," he said in a statement.
Petrofac said the scope of the study will be completed by early next year. Drilling could begin in 2015 and first oil could be produced from the region within the next 10 years.