One of the larger oil companies in the world has chosen Newfoundland and Labrador as its first foray into the offshore.
QatarEnergy, based in the oil-rich Middle East, has become a player in our oil patch with a 40 per cent interest in the deep-water Flemish Pass. The company will hold a 40 percent piece in the license for where the Hampden exploration well activities are planned. ExxonMobil will hold the remaining interest.
Rob Strong, an industry analyst for decades, sees it as a good sign that the company is interested in this area. He says there are other places to drill which are less expensive and closer to shore.
He says the $64,000 question is why the company would choose Newfoundland and Labrador but he sees it as a good sign for the industry.