Premier Welcomes Shell to Nova Scotia Offshore

The return of one of the world's top five oil and gas companies to Nova Scotia's offshore will create good jobs and generate hundreds of millions of dollars of investment, Premier Darrell Dexter said today, Jan. 20.

"This is an important milestone in the province's plan to reinvigorate interest in Nova Scotia's offshore," said Premier Dexter. "It's particularly good news for our world-class oil and gas supply sector."

The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) announced today that it has decided to award exploration rights to Shell Canada Limited for four parcels of deep-water land off Nova Scotia's southwestern shore.

Shell has committed to spend $970 million exploring those properties over the next six years.

"Shell was a pioneer in Nova Scotia's oil and gas industry, making our first offshore discovery in 1969," said the premier. "They are an excellent company with strong environmental, health and safety records, as well as significant experience drilling in deep waters. We are thrilled to have them as a partner in the responsible development of our offshore resources."

"We knew that lack of knowledge about the area's geology was a barrier to further exploration," said Energy Minister Charlie Parker. "We invested in world-class research and committed to sharing our findings with oil and gas companies around the world. We're seeing the results of that investment today."

Shell Canada said it is pleased with today's bid round announcement.

"We welcome the opportunity to return to exploration in offshore Nova Scotia, where we have had a continued exploration and production presence for over 40 years, since our first exploration well in the province," said David Lawrence, executive vice-president, exploration and commercial, Shell Upstream Americas. "These new deepwater blocks represent an important addition to Shell's Global Exploration portfolio."

Premier Dexter also welcomed the news, but said there is still a lot to be done.

"We have to continue to build on the interest in exploring our offshore and then work for a significant discovery," said the premier. "But it's fair to say that offshore exploration is poised to join the Lower Churchill hydro-electricity project and the Irving ship-building contract as game-changers for the Nova Scotia economy."

Over the past three years, the province has invested $15 million of offshore revenues in an analysis to prepare a 350-page atlas of the offshore, available at www.novascotiaoffshore.com. The Offshore Energy Technology Association commissioned RPS Consulting and Beicep Franlab for the industry-standard analysis.

Dalhousie and Saint Mary's universities, Natural Resources Canada's Geological Survey of Canada, the Canada-Nova Scotia Offshore Petroleum Board and Department of Energy also contributed to the project.

The study calculated the province had potential reserves of 120-trillion cubic feet of natural gas and eight-billion barrels of oil.

"Nova Scotia's energy strategy is all about balance, and our offshore has an important role to play," said Mr. Parker. "We are dramatically increasing the amount of green, renewable electricity produced here at home, while exploring the responsible development of our oil and gas resources, consistent the jobsHere strategy."