Canada Announces Nova Scotia Licensing Round Results

The Canada - Nova Scotia Offshore Petroleum Board has announced the successful results of the Call for Bids No. NS01-1 for nine new Exploration Licenses offshore Nova Scotia.

The Call for Bids NS01-1 was issued in June of 2001 on nine parcels of land. At that time, interested parties were invited to bid on the parcels and the public was invited to submit written comments to the Board. Bids were received on all nine parcels. Written public comments were also received specific to the parcels. The Board will ensure that operators address those comments and concerns in the environmental assessments and environmental impact statements which the Board requires before authorizing any activities in the license areas. The written submissions will be forwarded to the successful bidders.

The Bids represent the amount of money the bidder intends to spend exploring the land parcels during the initial five-year period of a nine-year license. The minimum bid is $1,000,000.

The federal and provincial governments have been notified of the bid results and the Board decision to issue Exploration Licenses is subject to joint ministerial veto. If there is no joint veto within 30 days and the bidder satisfies the security deposit requirements specified in the Call for Bids, the Board will issue Exploration Licenses for the land parcels.

It is important to note that an Exploration License does not give a company the right to conduct oil and gas activities. The Board stresses, that prior to any petroleum-related activities, the operator must apply for and receive work authorization from the Board for each activity. Application for work authorization must include an acceptable environmental impact statement, a comprehensive scope of work, a safety plan, a benefits plan, an environmental protection plan and evidence of financial responsibility. The following bids have been accepted (all amounts are in Canadian Dollars):

  • Land Parcel No. 1 EL 2406: Canadian Superior Energy Inc. 100% $41,250,000.00
  • Land Parcel No. 2 EL 2407: BEPCo. Canada Company 100% $6,742,000.00
  • Land Parcel No. 3 EL 2408: PanCanadian Petroleum Limited 50%; Shell Canada Limited 50% $10,515,951.00
  • Land Parcel No. 4 EL 2409: Canadian Superior Energy Inc. 100% $15,510,000.00
  • Land Parcel No. 5 EL 2410: Marathon Canada Limited 100% $176,694,282.00
  • Land Parcel No. 6 EL 2411: Marathon Canada Limited 50%; Murphy Oil Company Ltd. 25%; Norsk Hydro Canada Oil & Gas Inc. 25% $193,621,590.00
  • Land Parcel No. 7 EL 2412: Richland Minerals, Inc. 100% $4,283,650.00
  • Land Parcel No. 8 EL 2413: Richland Minerals, Inc. 100% $2,713,650.00
  • Land Parcel No. 9 EL 2414: PanCanadian Petroleum Limited 50%; Petro-Canada 50% $75,856,789.00

The total amount of winning bids was $527,187,912.00.

The Board has also decided not to proceed with Call for Bids NS01-2 in December 2001. The next nomination closing date is March 31, 2002. Nominations received prior to that date will be considered for inclusion in Call for Bids NS02-1, which, if held, would be issued June 2002.


Our Privacy Pledge

Most Popular Articles
Related Articles

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours