Newfoundland and Labrador - a rare find
Oil & Gas
The oil & gas industry is poised for growth, with a strong exploration program and global operators active in exploration, development, and production.
Reserves were first discovered in 1979, with first oil in 1997. Twenty years later, there are four fields producing an average of 240,000 barrels per day and a fifth field, the $14 billion Hebron project, that produced first oil in November 2017. Exploration and licensing continue with the last round in 2018 achieving a record cumulative successful amount of bid just under $1.4 billion and a record single successful bid amount of $621 million. The next licensing rounds are scheduled from 2019 to 2024.
The area for offshore exploration is 2.5x that of the North Sea, with only 8 percent under license. Nalcor Energy, the provincial energy company, has a robust exploration program to inform and support work by operators and their partners. From biostratigraphy to regional rock physics, these studies are undertaken to address key risks and scientific uncertainties and enable potential operators to focus on areas of promise.
A scheduled land tenure system is in place to provide increased time frames for calls for bids in frontier regions. The offshore area has been divided into eight regions that have been individually categorized as either low activity, high activity, or mature, based on the level of oil and gas exploration and development activities. The licensing process is conducted through the Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB).
For full information on exploration, visit the provincial energy corporation: Nalcor Energy.
Supply and Service
The province has a robust supply and service sector, supporting local exploration and development as well as global projects. The sector’s expertise is in fabrication, systems integration, observation, inspection and safety, and the environment. They are ready to support your project.