Interest in N.S. Offshore Continues to Grow
PETROLEUM DIRECTORATE--Interest in N.S. Offshore Continues to Grow
The Nova Scotia Government supports a decision to issue a call for bids on nine parcels of offshore land by the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB).
The Minister Responsible for the Petroleum Directorate, Gordon Balser, says the bid call is another endorsement of Nova Scotia’s significant offshore potential.
“The nine blocks up for bid are expected to draw more international interest to the Nova Scotia offshore,” said Mr. Balser. “If licences are issued on all nine blocks, it would bring the total number of our offshore licences to 59.”
The minister also noted that the call for bids is just the beginning of a very lengthy and thorough regulatory process that must be followed before exploration and development could begin.
When any lands go up for bid, the CNSOPB follows an established process that identifies environmental or fishing industry concerns. The regulatory process is designed to ensure issues are raised in advance, so that potential bidders can take them into account.
In its release, the CNSOPB notes: “the public is invited to submit written comments to the board. The board will undertake a Strategic Environmental Assessment of the call, which will be posted in the coming months on the board home page, and will also be consulting with members of its Fisheries and Environmental Advisory Committee. The board will review all submitted information prior to considering the issuance of an exploration licence.
“Nova Scotia supports all industries in their desire to minimize regulatory uncertainty,” said Mr. Balser. “That is why we want concerns to be raised and addressed before licences are issued.”
Total work commitments on the 50 licence areas currently held offshore Nova Scotia now exceed $1.03 billion. The actual exploration on these blocks could be significantly higher. An average well costs in the range of $30 million for shallow water and $50 to $60 million for deep water.