Canada’s Energy NL allocates $90 million for offshore activity in 2025 budget

Energy NL, Canada's energy industry association, has issued a statement with details on its Budget 2025. CEO Charlene Johnson announced $90 million to be allocated over three years for offshore oil and gas exploration. 

The following statement was issued by Energy NL CEO Charlene Johnson in response to Budget 2025.

“The priority request of Energy NL for Budget 2025 was the continuation with modifications of the Offshore Exploration Initiative and this year’s budget has allocated $90 million over three years for offshore exploration. This is extremely positive support for the offshore oil and gas industry. The funding will attract offshore exploration and have a return on investment by creating significant opportunities for Energy NL members in the supply and service sector and resulting in substantial economic spinoffs for Newfoundland and Labrador.

As Canada and the world look to secure their energy supply and source lower carbon oil, exploration offshore Newfoundland and Labrador can help meet both these needs while providing substantive benefits to the province. Should an exploration program prove successful, the economic benefits to the province would be substantial in terms of employment, royalties, and revenues, with every resident of the province positively impacted.

As we compete in a tight exploration market, this funding initiative will make our jurisdiction more attractive and will move us further up the list for companies planning 2026 exploration programs; this helps lower the above ground risk for our world-class resource. The type of support provided to the offshore today by the Government of Newfoundland and Labrador is welcomed by our industry and I look forward to working with the province as we continue to make our jurisdiction more attractive for investment and exploration.

We were also pleased to see funds allocated for phase two of the natural gas resource assessment so we can better understand the potential of this energy source in the Jeanne d’Arc Basin. There are also additional funding programs to support energy supply and service capabilities and to help lower capital costs. These are positive steps forward for the Newfoundland and Labrador energy industry.”