Province Welcomes Growing Interest in Offshore Oil, Gas

Growing interest in Nova Scotia's offshore oil and gas resources is good news for the province, said Energy Minister Richard Hurlburt.

The Canada-Nova Scotia Offshore Petroleum Board today, Nov. 7, announced the successful bidders for two parcels in offshore Nova Scotia.

Shin Han F&P Inc., a Nova Scotia-based company, has won rights to explore a deep-water parcel 275 kilometres southwest of Sable Island, with a work-expenditure bid of $129 million. Another company, 1164214 Alberta Ltd., will be issued a new exploration licence for a shallow-water parcel in the Sable Island area, with a work-expenditure bid of $7.87 million.

"Nova Scotia's new policies were designed to attract more customers to our offshore, and this is proof these policies are working," said Mr. Hurlburt. "Our congratulations go to these two companies for choosing Nova Scotia as a place to do business, and to my colleagues at the offshore board, the federal government, and the provincial government for making this new type of exploration licence a reality."

Nova Scotia now has more flexible, lower entry-cost licences that reward early activity and encourage a broader range of companies to explore offshore Nova Scotia.

Mr. Hurlburt said the board's announcement, combined with two other exploration licences issued in September to Ammonite Corporation and Catheart Energy Inc., shows momentum is building in Nova Scotia's offshore.

The province, with the federal government and board, has been a leader in stimulating activity, through measures such as:

• co-funding the board's data-management centre, an online centre of geological data, seismic studies and core samples
• reprocessing government-owned seismic data for north of Sable Island, with a release to potential investors and explorers
• an economic-scoping model for small-field development around Sable Island, available at no cost
• ongoing efforts to market Nova Scotia's offshore in major oil and gas centres around the world

"This industry is a big contributor to the provincial economy, creating jobs and more than $500 million in royalties that help pay for hospitals, schools, and roads," said Mr. Hurlburt. "It is important that we continue to stimulate activity. We will continue to work with the board and the federal government on new and enhanced geoscience, policies, regulations R&D, and marketing to continue building momentum in our offshore."