Newfoundland and Labrador offering millions for exploration to open new oil frontiers

Newfoundland and Labrador Premier Tony Wakeham speaks to reporters at an energy conference in St. John's, N.L., on Tuesday, June 2, 2026. THE CANADIAN PRESS/Sarah Smellie

ST. JOHN’S — Oil production is ramping up off Newfoundland and Labrador and the government is offering money to companies interested in looking for more.

Premier Tony Wakeham opened an annual energy conference in St. John’s, N.L., by announcing a call for exploration bids on 16 areas off the province’s east coast.

He says his government will offer up to $30 million to offset the cost of a well drilled in an area aimed at opening up a new offshore oil frontier.

The last time a company bid on an exploration license off Newfoundland and Labrador was in 2022.

However, Wakeham said the tides were turning, in part because of Prime Minister Mark Carney’s focus on energy development.

Newfoundland and Labrador is home to four offshore oil installations and Statistics Canada says production hit nearly 8.2 million barrels in October — the highest it has been since July 2021.

This report by The Canadian Press was first published June 2, 2026

The Canadian Press