Canada-Nova Scotia accept bids for nine licenses off Nova Scotia

By the OGJ Online Staff

HOUSTON, Nov. 2 -- The Canada-Nova Scotia Offshore Petroleum Board has accepted bids totaling $527.2 million (Can.) for nine exploration licenses off Nova Scotia.

The call for bids was issued in June. Companies bid the amount of money they expect to spend on each lease for the first 5 years of the 9-year lease. The minimum bid was $1 million (Can.).

The board decision is subject to federal and provincial ministerial veto. If no veto occurs within 30 days, an exploration license will be issued.

Before any work is done, the operator must apply for authorization for each activity, a request which must include an acceptable environmental impact statement, a comprehensive scope of work, a safety plan, a benefits plan, an environmental protection plan, and evidence of financial responsibility.

The petroleum board said it accepted the following offers:

-- Marathon Canada Ltd., Murphy Oil Co. Ltd., and Norsk Hydro Canada Oil & Gas Inc. bid $193.6 million for License 2411. Marathon will hold 50%, and the two other companies will hold 25% each.

-- Marathon Canada Ltd. bid $176.7 million for License 2410.

-- PanCanadian Petroleum Ltd. and Petro-Canada bid $75.9 million for License 2414. Each will hold 50%.

-- Canadian Superior Energy Inc. bid $41.3 million for License 2406.

-- PanCanadian Petroleum Ltd. and Shell Canada Ltd. bid $10.5 million for License 2408; each will hold a 50% interest.

-- Canadian Superior Energy Inc. bid $15.5 million for License 2409.

-- BEPCo. Canada Co. bid $6.7 million for License 2407.

-- Richland Minerals Inc. bid $4.3 million for License 2412.

-- Richland Minerals Inc. bid $2.7 million for License 2413.

The petroleum board will not proceed with its next call for bids, previously expected in December. The next nomination closing date is Mar. 31, 2002. If held, the next call for bids is expected in June.