No Bids for Acreage Offshore N. Scotia
- Business & Finance
Nova Scotia Offshore Petroleum Board yesterday announced the results of Call for Bids NS13-1. No bids were received.
The Call for Bids featured six parcels which are located 125km off the coast of southeastern Cape Breton. Call for Bids NS13-1 was issued on April 22nd, 2013 and closed on October 24th, 2013. As part of the process, interested parties were invited to bid on the parcels and the public was invited to submit written comments to the Board.
The next Call for Bids (NS14-1) will be issued in April 2014 with nominations closing on December 1st, 2013. The Board will not consider nominations for Call for Bids NS14-1 past this date. In addition, the CNSOPB has a three year plan for lands which may be included in future Calls for Bids. This forecast can be found at www.cnsopb.ns.ca/lands-management/Call-for-Bids-Forecast-Areas.
Not a big surprise
Investment in Nova Scotia’s offshore will continue in 2014 after increased activity this year. The result of yesterday’s Call for Bids will not dampen interest or activity says The Maritimes Energy Association.
There is more than $2 Billion committed to exploration work offshore Nova Scotia over the next six years, generating significant economic benefits for the region.
“While no bids were submitted in the latest Call for Bids, this region has plenty of work to look forward to,” says Barbara Pike, CEO of The Maritimes Energy Association. “Shell Canada conducted seismic work this summer, hiring local employees, companies and contractors. It will be back offshore next year. BP Exploration has just awarded its seismic contract for work in 2014 which will be one of the largest 3-D seismic programmes in the world next year.”
Pike explains the result of the latest Call for Bids is not a big surprise, nor an indication that interest in Nova Scotia’s offshore is waning. The Play Fairway Analysis, released in 2009, can be credited with generating interest in exploring offshore Nova Scotia. The $15-million dollar study highlights the region’s potential for oil & gas development.
“The investment made by the government with the Play Fairway Analysis is less than one percent of the return on investment,” says Pike. “The prospectivity on the parcels in the latest Call for Bids was just not as attractive as the previous two Calls. We are encouraged that the Province of Nova Scotia continues to invest in more geological analysis of the offshore area and expect that to be a significant advantage for future Calls for Bids.”
Atlantic Canada hosts a world-class energy supply chain, servicing projects in this region, nationally, and abroad. The local supply chain is prepared and eager to provide their services as new projects develop offshore Nova Scotia.
November 14, 2013