Canada Awards Atlantic to BP for Oil Exploration

Canadians are once again feeling the impact of an administration that is strongly pro-fuel as BP is given the areas of the Atlantic sea for offshore oil exploration and drilling. According to a recently issued statement of Canada-Nova Scotia Offshore Petroleum Board (CNSOPB), BP was the winning bidder of four blocks in the area with its impressive bid, amounting to $1.05 billion. The four Atlantic sea blocks have an area of about 14,000 square kilometers.

Located 300 kilometers off Nova Scotia’s coast, BP has full intentions of crude oil exploration in the newly accessible areas of the sea. The need to explore offshore is becoming more significant since inland oil sources are either starting to dry or are facing strong criticism from environmental groups. The sea is quickly becoming a major battleground for excavation of oil.

But, BP is not the only one investing in Canada’s offshore area. Shell was also awarded by the CNSOPB with four sea blocks in the early parts of this year following a victorious bid of $970 million. Although Shell has not officially began its oil exploration in the area, plans are in line for big projects in the future. CNSOPB is planning to give oil exploration licenses next year, and firms are officially allowed to begin surveying the blocks they purchased after that.

While the board feels confident that the oil companies will follow the strict regulations in their oil exploration and drilling, many environmental groups are not convinced, especially as BP was recently found guilty for criminal misconduct because of the oil spill it brought to the Gulf of Mexico. The spill, which amounted to millions of dollars in damages, isn’t something that the citizens of the country want to witness on their shores soon.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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