A Canadian offshore oil regulator has issued a licence to Equinor’s Cappahayden K-67 discovery in the Flemish Pass Basin offshore Newfoundland, Canada.

The Significant Discovery Licence 1059 has been issued by the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Based on the interpretation of well and seismic data associated with the discovery, C-NLOPB estimates that the Cappahayden K-67 discovery holds approximately 385 million barrels of recoverable oil.

The nearby Bay du Nord field is estimated to hold 500 million barrels of recoverable oil, reported Reuters.

In a press statement, C-NLOPB said: “The Petroleum Resources Management System adopted by the C-NLOPB defines Contingent Resources as ‘volumes of hydrocarbons, expressed at 50% probability, assessed to be technically recoverable, that have not been delineated and have unknown economic viability’.

“This includes oil in fields/pools that are not approved for development.”

Equinor holds a 60% stake in the discovery, which was made in 2020. The remaining 40% stake is held by BP.

Equinor spokesperson Alex Collins told the news agency that the firm is assessing the amount of oil that can be recovered economically and technically from the Cappahayden well.

The Norwegian firm currently has eight significant discovery licenses for offshore Canada.

The Canada Energy Regulator said the companies are required to receive a significant licence for exploration following their oil and gas discovery. The license will preserve the firm’s rights to exclusively produce in that area.

Last year, Canada approved Equinor’s proposed $12bn Bay du Nord offshore oil project located approximately 500km off the coast of the country’s Newfoundland and Labrador province.

The project will involve the construction of an offshore floating production storage and offloading (FPSO) unit.