The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) is issuing a call for bids for oil and gas exploration licenses in the Eastern Newfoundland region.
The Call for Bids No. NL24-CFB01 consists of 41 parcels totaling 10,287,196 hectares. Out of those, 32 were previously available under either separate calls for bids or through relinquishment of Crown lands. The other nine parcels are new and designed over Sector NL06-EN with consideration from stakeholder input from a previous call for nominations.
The minimum bid for a parcel is $10 million in work commitments. Winners are selected based on the highest total of money the bidder commits to spend on exploration of a parcel during the first six years of a nine-year license, known as Period 1.
Some parcels in this call for bids overlaps with the Northeast Newfoundland Slope Marine Refuge. Regulations and the timing, spatial extent and nature of proposed oil and gas activities will determine the level of additional restrictions required. The region is important for fish harvesters, so any companies granted exploration licenses will be required to engage with fishing interests before oil and gas activities will be authorized.
The deadline for bids is Nov. 6 at 12:00 p.m. Newfoundland time. Successful bids will be required to receive ratification by the federal and Newfoundland and Labrador governments to be awarded any exploration licenses.
The C-NLOPB will not proceed with a call for bids in the Jeanne d’Arc Region in 2024, but will reevaluate on an annual basis.
Recommended Reading
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.