Plans for More Offshore Exploration
Industry interest in the Nova Scotia offshore has resulted in another call for exploration leases. Petroleum Directorate Minister Manning MacDonald says today's announcement that the Canada Nova Scotia Offshore Petroleum Board has called for bids on 11 new parcels shows the growing strength of the energy sector in Nova Scotia.
"Just a month after committing nearly $600 million to exploration, industry is back willing to put more money on the table and more jobs into the economy," said the minister. "This confirms the offshore has grown from one project to become an industry."
The offshore petroleum board is offering 11 parcels with a total area of 1.2 million hectares on the Scotian Shelf. Companies will have until Thursday, Oct. 28, 1999, to submit bids for exploration rights. Bidding on each parcel is based solely on how much money companies are willing to spend on exploration. The minimum bid is $1 million. Successful bidders will be required to post security in a guaranteed promissory note equal to 25 per cent of the work expenditure bid.
The board will grant licences for an initial period of five years, but posting an additional deposit of $250,000 may extend this to six years as security for the drilling of a well. If company drills a well in the first five years, the licence will be extended to a total of nine years.
Last month, 19 offshore parcels and three onshore locations were awarded with the highest bids in the history of the Nova Scotia offshore. Companies committed to spending a minimum of $600 million on the lands. This is on top of nearly $200 million in previous exploration permits awarded by the offshore petroleum board.
"Nova Scotia is just beginning to rival the North Sea and the Gulf of Mexico for petroleum activity," said Mr. MacDonald. "It is entirely possible that we could see as many as 10 rigs off the coast exploring for oil and gas by next summer."
The latest employment reports show more than 2,200 Nova Scotians are employed on the Sable Offshore Energy Project and an additional 1,000 people are working on the Maritimes and Northeast Pipeline.