Natural Resources
March 31, 2015
The following statement was given today in the House of Assembly by the Honourable Derrick Dalley, Minister of Natural Resources:
First Call for Bids Issued Under New Scheduled Land Tenure Regime
Mr. Speaker, I rise in this Honourable House to highlight the 2015 Call for Bids announced today by the Canada-Newfoundland and Labrador Offshore Petroleum Board.
This is the first Call for Bids under the scheduled land tenure regime in our offshore area. The Call for Bids consists of 11 parcels and a total of 2.5 million hectares in the Eastern Newfoundland Region. The minimum bid for each parcel offered is $10 million in work commitments.
The new land tenure regime is a huge step forward in the province's offshore industry. It was developed based on global best practices from leading exploration jurisdictions and through discussion with stakeholders.
With the new regime, transparency and predictability are ensured for companies interested in doing business in our offshore industry. Exploration companies will now have additional time to evaluate petroleum prospects, conduct geoscientific work, and prepare for the Call for Bids process.
The new regime is already creating a strong interest among present players in the province and it is proving to be particularly beneficial to those companies contemplating business in our province.
The petroleum industry as a whole continues to generate tremendous benefits to this province. In 2014 alone there was $3.4 billion spent in this province, and close to 12,000 Newfoundland and Labrador residents employed at peak.
Through Nalcor, we continue to promote our oil and gas potential through seismic work which is providing us with a better understanding of what lies beneath our offshore subsurface. This work is attracting the attention of the global oil and gas industry. In 2014, working with globally recognized partners TGS and PGS, Nalcor acquired 37,500 kilometres of multi-client two dimensional (or 2D) seismic. This is the most data captured offshore Newfoundland and Labrador in a single year since 1983. The seismic program is one of the largest ongoing offshore 2D seismic programs in the world today. Multi-client seismic data is available to explorers through licensing arrangements with TGS.
Continued exploration activity will help to sustain growth and development, while supporting long-term economic and employment opportunities for Newfoundlanders and Labradorians.
Mr. Speaker, the initiatives I am outlining today, including the move to the new land tenure regime and our commitment to offshore exploration are consistent with our government's long-term Energy Plan. I look forward to seeing the results of the Call for Bids announced today and to continuing efforts in offshore exploration to sustain economic prosperity in Newfoundland and Labrador. Thank you.
2015 03 31 2:00 p.m.