Statoil, Newfoundland near deal on offshore drilling

Calgary, Alberta

NORWAY'S Statoil ASA is "weeks away" from reaching a deal with the government of Newfoundland and Labrador to develop the company's 600 million-barrel Bay du Nord oil discovery off the Canadian province's Atlantic coast, the province's premier said on Tuesday.

Newfoundland Premier Paul Davis said the province was close to terms with Norway's largest oil company to develop the field in the Flemish Pass, 500 km north-east of St John's, the provincial capital. "Statoil wants a deal. We want a deal," the premier said after an industry speech in St John's. "I'm optimistic that we will be successful in reaching terms."