The Government of Newfoundland and Labrador is celebrating a major milestone for the province’s offshore oil and gas industry following a strong response to the latest call for bids administered by the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER).
Following several years without industry bids, some of the world’s leading energy companies have committed more than $260 million, signaling renewed global confidence in Newfoundland and Labrador’s world-class offshore resource potential. Newfoundland and Labrador is back in the oil and gas business.
Today, the C-NLOER announced bids on 10 exploration parcels, including successful submissions from Shell, joint bids from Shell and Equinor, and reserve bids from OilCo. The participation of major international operators represents one of the strongest endorsements of the province’s offshore sector in recent years.
The bid round was led by Shell, which secured six parcels with work bid commitments totaling $210.6 million. Shell and Equinor jointly secured an additional two parcels with bids totaling $30 million. OilCo submitted reserve bids on two parcels valued at $20 million, positioning the corporation to advance future exploration opportunities and attract commercial partnerships.
The results reinforce Newfoundland and Labrador’s position as one of the world’s premier offshore exploration jurisdictions. The participation of globally recognized energy companies reflects confidence in the province’s resource potential, highly skilled workforce, modern regulatory regime and commitment to responsible resource development.
Offshore oil and gas remains one of Newfoundland and Labrador’s most important economic sectors, supporting thousands of jobs, generating significant revenues for public services and creating opportunities for businesses and communities throughout the province. Continued exploration activity is essential to sustaining the next generation of offshore development projects and ensuring long-term economic growth.
Quotes
“Today’s results are a significant vote of confidence in Newfoundland and Labrador and the future of our offshore industry. After years with no bids, some of the world’s leading energy companies have committed hundreds of millions of dollars to exploring our offshore basin. That level of investment speaks to the strength of our resource potential, our workforce and our reputation as a stable and competitive place to do business. This is an important milestone for our province. Exploration drives future development, future jobs and future revenues, and these results put us in a strong position to build on the success of our offshore industry for decades to come.”
Honourable Tony Wakeham
Premier of Newfoundland and Labrador
“The strong response to this call for bids is an encouraging sign for Newfoundland and Labrador’s offshore energy industry. Interest from globally recognized companies such as Shell and Equinor reflects confidence in our resource potential, our skilled workforce and the regulatory framework that supports responsible development. Continued exploration activity is essential to identifying future opportunities that can create jobs, generate economic growth and strengthen the province’s energy sector for years to come.”
Honourable Lloyd Parrott
Minister of Energy and Mines
“The results of this year’s licence round are a positive sign for Newfoundland and Labrador’s offshore, with successful bids from industry alongside OilCo’s participation. Our world-class geological potential and proven offshore industry provide a strong foundation to build on. OilCo’s role is to complement industry investment by creating additional opportunities, engaging directly with prospective partners and helping turn that potential into future exploration activity.”
Jim Keating
CEO, OilCo
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