Offshore oil and gas bid round begins in Canada

Canada

ST. JOHN'S, April 19, 2023 – Canada has put 47 concession areas on offer in its latest offshore oil and gas bid round in the eastern province of Newfoundland and Labrador, the Canada-Newfoundland and Labrador Offshore Petroleum Board announced on Monday.

The call for bids covers two distinct areas, the first of which is located in the Eastern Newfoundland region on the Flemish Pass and Orphan basins and consists of 28 parcels.

The Flemish Pass basin is the site of Equinor’s Bay du Nord project, which was approved by the government in April 2022. Additionally, BP and Exxonmobil have planned drilling works on the Orphan basin in 2023 or soon after.

The second area is located in the South Eastern Newfoundland region and includes concessions on the Carson-Bonnition and Salar basins. This area consists of 19 parcels.

Winning a bid is based solely on the amount offered by companies, with a minimum commitment of USD 7.5 million (CAD 10 million).

The round is set to close on November 1, 2023, with formal licences awarded in early 2024.