Nova Scotia's Offshore Attracts Another Major Player

Another world leader in oil and gas is investing in Nova Scotia's offshore, which will create more good jobs and generate hundreds of millions of dollars for Nova Scotians, Premier Darrell Dexter said today, Nov. 16.

"Yet another company has seen the potential and strength of Nova Scotians, and made the largest single offshore bid in Atlantic Canadian history," said Premier Dexter. "This investment will mean more good jobs and hundreds of millions of dollars in revenue that will be used to improve health care, education and build roads to help make life better for Nova Scotia families."

The Canada-Nova Scotia Offshore Petroleum Board announced today that it has awarded exploration rights for four deep-water parcels to BP Exploration Company Ltd. BP has committed to spending nearly $1.1 billion exploring these properties over the next six years.

Shell Canada has also been awarded exploration rights to four parcels, two in the Sable Island area and two in deep water, for its $32-million bid. Earlier this year, Shell was awarded four other deep-water parcels, bringing its total spending commitment to more than $1 billion over six years.

"That's more than $2 billion these two companies have committed to invest in Nova Scotia and its people," Premier Dexter said. "The fact that we now have two of the world leaders in oil and gas investing significant money in our province speaks to the confidence the industry has in Nova Scotia's potential."

The premier pointed out that the offshore petroleum board oversees a careful and vigilant bid process to determine exploration rights. The board also has one of the most stringent regulatory regimes in the world to ensure businesses that operate in Nova Scotia do so in a safe and responsible manner.

"Our province's future depends as much on how we manage the environment as we do the economy," Premier Dexter said. "It's a fine balance and this government takes that very seriously."

The petroleum board issued exploration licences for the eight parcels in January, pending final approval by the federal and provincial governments. The licence does not authorize any work. Any activity requires approval from the petroleum board.

"The offshore petroleum industry is a source of good jobs and substantial revenue for Nova Scotia," said Energy Minister Charlie Parker. "The province is working to continue to grow this industry by marketing Nova Scotia's potential around the world."

This was the second call for bids since the province's $15-million investment in critical geoscience information was shared with industry. This work provides a clearer picture of the province's offshore and identified a potential of 120 trillion cubic feet of natural gas and eight billion barrels of oil. The $15-million investment has now resulted in a more than $2-billion return for the province.

More information on the results of the call for bids can be found at www.cnsopb.ns.ca.