HALIFAX – A senior executive with energy giant BP says the company will move ahead with plans to drill a deep-water oil exploration well off the coast of Nova Scotia within two years even if the price of crude remains at current levels.
Rob O’Connor, BP’s exploration manager for Canada, told an industry conference today that the high-risk venture has reached the environmental assessment stage and remains on track to have a well drilled in 2,000 metres of water by July 2017.
O’Connor says with the price of light, sweet crude hovering around $45 a barrel, BP remains committed to the Nova Scotia project despite the high costs associated with exploring deep water in the North Atlantic.
Nova Scotia Energy Minister Michel Samson says he’s aware that BP and its rival Royal Dutch Shell have shelved other exploration projects as oil prices have plunged amid a glut of product on the market.
Earlier this week, Shell said it was stopping its search for oil off the Alaskan coast, blaming disappointing test well results and the rising costs associated with the U.S. regulatory environment.