Company wins rights to explore oil and gas offshore Nova Scotia after $210M bid

The semi-submersible oil rig Eirik Raude sits anchored in Halifax harbour on Tuesday, Jan. 28, 2003. (CTV file photo)

A joint federal-provincial regulator says an energy company won the rights to explore for oil and gas in the waters off Nova Scotia.

The Canada-Nova Scotia Offshore Energy Regulator (CNSOER) received two successful bids from Inceptio Oil and Gas Ltd.

The energy company bid more than $210 million on two parcels located on the central Scotian Shelf and Slope.

One parcel, referred to as “Parcel 8,” is located on the Scotian Slope in waters ranging 200 to 4,300 metres deep.

The second parcel, referred to as “Parcel 9,” is on the Scotian Shelf in waters less than 200 metres deep. The shelf parcel is near Sable Island National Park Reserve and west of the Gully Marine Protected Area.

Members of the regulator decided to issue exploration licences to the bidder for activities like seismic testing and drilling, though the ultimate call comes down to a federal and provincial ministerial review and approval process.

CNSOER put out petroleum-related calls for bids last July for 13 parcels on the central Scotian Shelf and Slope, 11 of them did not receive any. The deadline to submit was April 28.

Premier Tim Houston released a statement Thursday expressing his approval with Inceptio Oil and Gas Ltd.

“These bids were independently reviewed and vetted by the Canada-Nova Scotia Offshore Energy Regulator. That means they have gone through a credible, arm’s-length regulatory process and met the standard required to move forward,” Houston writes in a statement.

The premier has been moving to expand Nova Scotia’s energy sector through natural gas projects.

“Across our entire offshore margin, we believe there is the potential for 148 trillion cubic feet of natural gas and 49 billion barrels of oil,” says Houston.

However, protestors have taken to voicing their opposition to natural gas extraction and fracking, even interrupting provincial consultation sessions.

In 2019, the offshore energy regulator oversaw an environmental assessment of the area the parcels are located and set out some areas of concern.

“There are fish, marine mammal, sea turtle and bird species with special conservation status known to be found in the study area, including the endangered blue whale, North Atlantic right whale, Northern bottlenose whale, leatherback turtle, loggerhead turtle and roseate tern,” they wrote in the assessment.

They noted that data gaps and uncertainties exist in understanding the possible effects of exploration activities on marine species.

“Considering these gaps, a precautionary approach to oil and gas exploration should be taken in the vicinity of sensitive areas and the presence of species of special status,” reads the assessment.

If the provincial and federal government approve Inceptio Gas and Oil Ltd.’s licences, the company will then have to seek environmental approval and submit another application for approval from the offshore energy regulator.

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