CNOFPB Announces 2004 Licensing Round

The Canada-Newfoundland Offshore Petroleum Board has announced details of the 2004 Call for Bids in the Newfoundland and Labrador offshore area. The Call will comprise five parcels, all parcels being located in the Jeanne d'Arc Basin. These parcels comprise a total of 270,256 hectares.

A Strategic Environmental Assessment will not be conducted on these parcels as offshore oil and gas activities in this area have been subject to three public review processes (Hibernia, Terra Nova and White Rose) and exploratory drilling programs in the area have undergone environmental assessment reviews.

Interested parties will have until 4:00 p.m. on November 17, 2004 to submit sealed bids. The sole criterion for selecting winning bids will be the total amount of money the bidder commits to spend on exploration of the respective parcel during the first 5 years (Period I). The minimum bid for all parcels is $ 1 million dollars. Subject to Ministerial approval, successful bidders will be issued an exploration license for a term of 9 years, and during Period I, a well must be spudded to validate the license for the full 9-year term. Period I may be extended to six years by posting an additional deposit of one million dollars as security for drilling a well.