ARCHIVED - Minister Oliver Supports Improvements to Land Tenure System in Canada-Newfoundland and Labrador Offshore

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December 19, 2013

Ottawa — The Honourable Joe Oliver, Canada’s Minister of Natural Resources, today expressed his support for improvements to the land tenure system under which exploratory and drilling rights are granted to operators in the Canada-Newfoundland and Labrador offshore. 

The changes, proposed by the Canada-Newfoundland and Labrador Offshore Petroleum Board, will encourage more industry entrants and greater competition in lease auctions. The new system will provide additional time for exploration companies to conduct scientific assessments of potential hydrocarbons in the lesser-known areas of the offshore and provide longer advance notification of specific regions that will be subject to Calls for Bids. The changes are subject to ministerial approval, and do not impact Canada’s strict legislative and regulatory safety and world-class environmental standards.

“Our government supports the Canada-Newfoundland and Labrador Offshore Petroleum Board’s efforts to improve the current land tenure system,” said Minister Oliver. “These changes will increase competitiveness and further encourage the responsible development of our energy resources, creating jobs and economic growth for the province and the country.”

The offshore industry is a vital economic driver in Newfoundland and Labrador and Atlantic Canada. The industry provided over 7,000 jobs in 2012 and contributed 33 percent of the province’s nominal GDP in 2011. The responsible development of the oil and gas resources will ensure long-term prosperity for the residents of Newfoundland and Labrador.

The Canada-Newfoundland and Labrador Offshore Petroleum Board regulates petroleum activities in the Canada-Newfoundland and Labrador offshore area on behalf of the Government of Canada and the Province of Newfoundland and Labrador under the Canada-Newfoundland Atlantic Accord Implementation Act.

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