Representatives of Noia’s (Newfoundland & Labrador Oil & Gas Industries Association) Board of Directors met with two Government of Canada ministers to discuss issues facing Newfoundland & Labrador’s offshore oil & gas industry. Noia officials met with the Honourable Peter Penashue, Minister of Intergovernmental Affairs and President of the Queen’s Privy Council for Canada and the Honourable Bernard Valcourt, Minister of State (Atlantic Canada Opportunities Agency), to discuss issues impacting the pace of development in the offshore industry and maintaining production levels into the future.
“Newfoundland & Labrador’s offshore oil & gas industry makes a significant fiscal contribution to both the Government of Canada and the Government of Newfoundland & Labrador,” said Robert Cadigan, President & CEO of Noia. “We are pleased to have the opportunity to discuss the role the Government of Canada can play in removing regulatory impediments to offshore exploration and economic growth.”
“Exploration is critical to sustaining Newfoundland & Labrador’s oil & gas industry and the benefits it brings to the people of our nation and our province,” explained Mr. Cadigan.
Oilfields discovered off Newfoundland & Labrador date back to the late 1970s and early 1980s. “To start making new discoveries, we need to jumpstart exploration now,” said Mr. Cadigan.
Two-dimensional (2D) seismic is the starting point for exploration, and Newfoundland & Labrador has not kept pace with other offshore oil & gas jurisdictions.
One of the main issues raised by Noia officials was the Government of Canada’s Coasting Trade Act. Last year, an attempt to obtain approval for a multiple-client, 2D seismic program in offshore Newfoundland & Labrador was declined by the Canadian Transportation Agency following a protest under the Coasting Trade Act by a Canadian ship owner.
“This protest caused a lengthy delay in our short exploration season, and almost put a crucial seismic exploration program at risk,”explained Mr. Cadigan. “Removing impediments to exploration is a no-cost way for the Government of Canada to help.”