5 Bids totalling $238,075,321: HUGE WIN for Newfoundland’s Offshore

Produced, Compiled or Written by Tina Olivero, Publisher & Editor – TheOGM.com

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) is announcing the results of Call for Bids NL22-CFB01 (Eastern Newfoundland Region) and Call for Bids NL22-CFB02 (South Eastern Newfoundland Region). Both Calls for Bids were previously approved by the federal and Newfoundland and Labrador governments. The awarding of exploration licences arising from any Call for Bids is a Fundamental Decision, meaning it is subject to further approvals by the federal and provincial governments.

Five successful bids were received for Call for Bids NL22-CFB01 (Eastern Newfoundland Region), totaling $238,075,321 in work commitments and covering 1,222,907 hectares. No bids were received for the South Eastern Newfoundland Region Call for Bids.

The sole criterion for selecting a winning bid is the total amount the bidder commits to spend on exploration of the parcel during Period I (the first six-year period of a nine-year licence). The minimum acceptable bid for each parcel is $10,000,000 in work commitments.

Parcels included in Call for Bids NL22-CFB01 can be found in the following map Call for Bids NL22-CFB01 Parcels map

Details on the successful bids are as follows:

SUCCESSFUL BID RESULTS FOR CALL FOR BIDS NL22-CFB01 (EXPLORATION LICENCES, EASTERN NEWFOUNDLAND REGION)
PARCEL	HECTARES	SUCCESSFUL BIDDERS	SUCCESSFUL BID AMOUNT
8	267,686	ExxonMobil Canada Ltd. (70%) QPI Energy Canada Ltd.  (30%)	$181,575,321
12	266,079	BP Canada Energy Group ULC (100%)	$16,500,000
26	252,271	Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd.  (40%)	$15,200,000
27	273,706	Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd.  (40%)	$14,000,000
28	163,165	Equinor Canada Ltd. (60%) BP Canada Energy Group Ltd.  (40%)	$10,800,000
Total	1,22,907		$238,075,321

Offshore safety and environmental protection are paramount in all Board decisions. The C-NLOPB supports action by the federal and provincial governments to address climate change and protect notable marine areas, working closely with governments and others in this regard. Emissions-related considerations will be assessed as part of the regulatory review process should companies propose specific plans.

Planning, monitoring and assessment of offshore petroleum activities will ensure they occur in a safe and environmentally responsible way. Required regional and/or site-specific mitigation measures will be undertaken before any petroleum-related operations can begin within a licence area, as conditions of
C-NLOPB approvals and authorizations. The timing, spatial extent, and nature of proposed oil and gas activities, in addition to mitigations already prescribed by legislation or regulation, will determine the level of restriction or mitigation that may be required.

The Eastern Newfoundland Region includes a number of important areas for fish harvesters who fish crab and other species. The C-NLOPB fully appreciates the importance of both the fisheries and petroleum sectors and will continue to engage with fisheries stakeholders, Fisheries and Oceans Canada (DFO), other federal and provincial agencies and other stakeholders throughout the land tenure process. Like any companies acquiring Exploration Licences, the successful bidders from Call for Bids NL22-CFB01 will be required to engage with fishing interests before any oil and gas activities are authorized.

Parcel 12 also overlaps with a portion of the Northeast Newfoundland Slope Marine Refuge. The C-NLOPB is focused on the protection of environmentally significant areas and will also continue to work closely with DFO and others in this regard.

As most of these parcels are beyond Canada’s 200 nautical mile zone, additional terms and conditions may be applied (e.g. through legislation, regulations, amendments to licences or otherwise) to the resulting licences from this Call for Bids in order to meet obligations arising pursuant to article 82 of the United Nations Convention on the Law of the Sea.

Subject to bidders satisfying the requirements specified and receiving government approvals, the Board will issue the new exploration licences in January 2023. Further detailed information about these Calls for Bids is available on the C-NLOPB website or C-NLOPB Data and Information Hub.

Any parties interested in receiving email notifications on Scheduled Land Tenure related announcements can contact Shannon Bulger at sbulger@cnlopb.ca.