subsidiary Sait-Aubin E&P Quebec Inc.
Maurel & Prom said it negotiated a settlement of $16.2
million for its 21.7% interest.
Petrolia, the Anticosti Hydrocarbons operator, confirmed
in a press statement that it was negotiating with the government and expressed disappointment with the decision.
“Petrolia reminds that it was at the request of the gov-
ernment of Quebec that it partnered with HASEC in 2014
and that it transferred its licenses in order to explore for oil
resources on the island in the collective interest of Quebeck-
ers,” it said, using the French acronym for Anticosti Hydro-
carbons. “The decision by the same government today to pro-
hibit the oil exploration on the island must be approached
and considered bearing this historical fact in mind.”
Another Anticosti Island license holder, TransAmerican
Energy Inc., Vancouver, BC, said it also was negotiating with
The company said it earlier had surrendered claims in a
St. Lawrence area where exploration was suspended to preserve its Anticosti Island rights.
“As these activities have had a fundamental impact impeding the company’s business progress in Quebec, it is
currently reviewing its approach to negotiations moving forward,” TransAmerican said.
The Quebec government has suspended oil and gas exploration on Anticosti Island in the Gulf of St. Lawrence.
It cited its support of an application by the Municipality
of Anticosti Island for designation as a world heritage site
under UNESCO’s Convention Concerning the Protection of
the World Cultural and Natural Heritage.
A primary exploratory target had been the Ordovician
Macasty shale (OGJ Online, Oct. 23, 2014).
The government reached settlement agreements with
some of the small producers with interests in Anticosti Island acreage and was negotiating with others.
Junex Inc., Quebec, said it will receive $5.53 million
(Can.) for its interests.
“We have always believed in the strong hydrocarbon po-
tential of our permits on Anticosti,” said Junex Pres. and
Chief Executive Officer Jean-Yves Lavoie. “Given the lack of
infrastructure, our strategy was to attract a major industry
player as a partner to develop that resource.”
Corridor Resources Inc., Halifax, will receive $19.5 million
for its interests, held through its 21.67% of Anticosti Hydro-
carbons LP, a joint venture formed by the government in 2014.
The partnership also includes Petrolia Inc., Quebec; Res-sources Quebec, a subsidiary of government affiliate Inves-tissement Quebec; and Maurel & Prom SA, Paris, through
Quebec halts Anticosti Island exploration
BP reports second-quarter profit despite
Macondo charges, Angola writedown
BP PLC reported a second-quarter replacement cost profit of
$550 million compared with a loss of $2.25 billion for second-quarter 2016. Its first-half profit was $1.97 billion compared with a loss of $2.73 billion in first-half 2016.
“We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency, and
discipline in capital spending,” commented Bob Dudley, BP
chief executive officer.
BP’s second-quarter upstream replacement cost profit before interest and tax was $795 million compared with a loss
of $109 million in second-quarter 2016. The result was negatively affected by the firm’s noncash exploration write-off in
Angola of about $750 million (OGJ Online, June 30, 2017).
Second-quarter production, meanwhile, jumped about
10% year-over-year to 2.43 million boe/d. BP expects its third-quarter reported production to be broadly flat with the second quarter given the continued ramp-up of major projects
offset by seasonal turnaround and maintenance activities.
The firm’s downstream business posted a second-quarter
replacement cost profit of $1.57 billion compared with $1.41
billion a year earlier. In the third quarter, BP expects a simi-
lar level of industry refining margins and that North Ameri-
can heavy crude oil differentials will remain under pressure.
BP’s Macondo oil spill payments were $2 billion in the
second quarter and $4.3 billion in the first half. The firm
expects its payments to be considerably lower in the second
half. Its full-year estimate is unchanged at $4. 5-5. 5 billion.
The cumulative pretax income statement charge since the
incident in April 2010 amounts to $63.21 billion.
Excluding post-tax amounts related to the Macondo oil
spill, the firm’s operating cash flow for the second quarter
and half year was $6.9 billion and $11.3 billion, respectively,
compared with $5.3 billion and $8.3 billion, respectively, for
the same periods in 2016.
Including amounts relating to the Macondo oil spill, BP’s op-
erating cash flow for the second quarter and half year was $4.9
billion and $7 billion, respectively, compared with $3.9 billion
and $5.8 billion, respectively, for the same periods in 2016.
BP’s net debt as of June 30 was $39.8 billion compared
with $30.9 billion a year earlier.