Offshore auction draws $238 million in Eastern Newfoundland Region bids

World Oil Staff November 03, 2022

(WO) —The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) announced five successful bids for Eastern Newfoundland Region exploration licenses totaling $238,075,321 in work commitments and covering 1,222,907 hectares.

St. John's-based Energy NL, which represents 460 member organizations involved in the energy sector, described the results as an encouraging sign for Canadian offshore industry due to the quality of bids and commitment of quality operators to the region.

"Interest in our offshore sector remains vibrant, and I look forward to the exploration campaigns of these operators commencing," said Energy NL CEO Charlene Johnson. "Those programs account for hundreds of jobs and millions of dollars in investment, along with significant opportunities for Energy NL members in the supply and service sector.”

The sole criterion for awarding the parcels is the total amount committed by the bidder to spend on exploration during the first six years of a nine-year license. The minimum acceptable bid for each parcel is $10 million in work commitments.

Successful bidders for the Eastern Newfoundland Region included ExxonMobil Canada, QPI Energy Canada, BP Canada Energy Group and Equinor Canada Ltd. Subject to bidders satisfying the requirements specified and receiving government approvals, the Board will issue the new exploration licenses in January 2023.

Successful Bid Results for Call for Bids NL22-CFB01
(Exploration Licenses, Eastern Newfoundland Region)
Parcel Hectares Successful Bidders Successful Bid Amount
8 267,686 ExxonMobil Canada Ltd. (70%)
QPI Energy Canada Ltd.  (30%)
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%)
27 273,706 Equinor Canada Ltd. (60%)
BP Canada Energy Group Ltd.  (40%)
28 163,165 Equinor Canada Ltd. (60%)
BP Canada Energy Group Ltd.  (40%)
Total 1,222,907   $238,075,321

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

“The results of the 2022 call for bids are encouraging for several reasons. We have an operator with a proven history in our offshore, Exxon Mobil Canada, again demonstrating its commitment to our offshore sector,” Johnson said. "A relatively new entrant to our offshore, bp Canada, has also signaled their continued interest in offshore Newfoundland and Labrador with a sole bid and three joint bids. Further, Equinor has three successful bids in this process which highlights their interest in becoming an operator in our waters.

“Given the world leading ESG standards of our industry, our lower carbon product, skilled workforce, history of success, and being at tidewater and proximity to European and U.S. markets, Newfoundland and Labrador is continuing its momentum as a clean energy leader and remains an attractive place to produce energy. I am confident we will for decades to come,” Johnson concluded.

No bids were received for the separate South Eastern Newfoundland Region call for bids.

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