Minister expresses optimism on results of Call for Bids

Ed Byrne, Minister of Mines and Energy, said he is extremely optimistic about the future of exploration offshore Newfoundland and Labrador based on the results of the recent Call for Bids by the Canada-Newfoundland Offshore Petroleum Board (C-NOPB). The C-NOPB released today results of its 2003 Call for Bids which saw eight of the 14 parcels offered receiving bids totalling $672,680,000. The parcels are located in the area known as the Orphan Basin.

"The results of this land sale are very encouraging," said Minister Byrne. "The bids received are three times more than our previous highest total bid, which was $192 million. In fact, a bid for one parcel - at $250 million - is larger than the previous high total bid. This reflects confidence in and certainly suggests the potential for large discoveries in this basin."

The bids on the eight parcels were submitted by a joint venture that includes ExxonMobil, Imperial Oil and Chevron Canada.

"It is encouraging to see major players such as ExxonMobil and Chevron, who have played such a major role in the development of our offshore, take such an aggressive position in this land sale," said Minister Byrne. "This is clear evidence that the province�s offshore has world-class prospects and that we still have exciting exploration opportunities to offer the industry."

Minister Byrne said he looks forward to seeing this further exploration work get started on the Orphan Basin. Licences for the eight parcels will be issued by the C-NOPB in January 2004, subject to the bidders satisfying the requirements specified in the Call for Bids.

"We welcome the investment these companies plan to make in our province and look forward to working with them and the industry in general in a cooperative manner to ensure Newfoundland and Labrador continues to be an attractive place to invest," the minister stated. "If we are to secure meaningful benefits for the people of this province, we need to identify new opportunities for development.

"I hope this is the start of a new trend and we will see a new round of exploration in a new area offshore our province. Frankly, this could not have come at a better time in the development of our oil industry."

Media contact: Carmel Turpin, Communications, (709) 729-5282 or (709) 685-4624 (cell)

Note to Editors: Minister Byrne will be available to the media at 2:30 p.m., Media Centre, Ground Floor, East Block, Confederation Building.

2003 12 18                                      1:42 p.m.