BP responds to offshore Newfoundland acreage auction

BP Canada Energy Group ULC was the sole bidder for the latest Canada-Newfoundland and Labrador Offshore Petroleum Board licensing round.

Call for Bids NL20-CFB01 comprised 17 parcels (totalling 4,170,509 ha) in the Eastern Newfoundland Region. BP was awarded Parcel 9 (264,500 ha) after pledging US$27 million in work commitments.

All the remaining 16 parcels could be re-offered in a future Call for Bids.

Parcel 9 extends partly into an area of fish harvesting activity and a portion of the North-east Newfoundland Slope Marine Refuge, and is also partially beyond Canada’s 200 nautical-mile zone.

So additional terms and conditions may take effect in order to comply with obligations related to article 82 of the United Nations Convention on the Law of the Sea.

However, subject to BP satisfying requirements specified and receiving government approvals, the board will issue the new exploration licence in January 2021.

Source: Offshore Magazine