The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) released its Annual Report for 2007/08 today, available in both English and French.
2007/08 was an exciting year for the C-NLOPB, as the Board embarked on an era of change and refinement through initiatives aimed at improving regulatory effectiveness and efficiency. The regulatory environment impacts industry decisions and the competitiveness of a region by encouraging or discouraging exploration and development. The Board has therefore been streamlining and consolidating the number of Authorizations and Approvals issued to oil and gas companies operating in the Newfoundland and Labrador Offshore Area without compromising safety, environmental protection, resource conservation or industrial benefits.
In 2007, the C-NLOPB changed its auditing process from focused quarterly audits to an Integrated Safety and Environmental Audit of the operator’s entire safety and environmental management system. This change has not diminished the importance of worker safety or environmental protection, as Safety Officers and Environmental Compliance Officers continue to visit each installation every quarter to conduct inspections
Also in 2007, the Board initiated a Strategic Environmental Assessment (SEA) for the Labrador Shelf and formed a multi-stakeholder working group. Co-chaired by representatives from the C-NLOPB and the Nunatsiavut Government, a draft SEA report was released for public comment in March, 2008.
In 2007, the Board issued a Call for Bids for 5 parcels of land, four in Labrador and one on the West Coast of the Province. The four parcels in Labrador represent the first ever Call for Bids by the C-NLOPB for the Labrador Offshore Area. Bidding is expected to close on four parcels of land in September 2008. The C-NLOPB accepted a bid in the amount of $1,521,000 for the West Coast parcel which is composed of 51,780 ha. The bid represents the expenditure which the bidder is committed to make in exploring the parcel during the initial 5-year period of a 9-year-term exploration license.
As of December 31, 2007, 2,851 persons were working in direct support of petroleum related activity in the Newfoundland and Labrador Offshore Area, accounting for almost 1.3% of the total employment in the province. During 2007, expenditures related to work in this area amounted to $1.4 billion, while the oil and gas sector directly accounted for 35% of the province’s nominal Gross Domestic Product (GDP). As of March 31, 2008, 37 Exploration Licences had been issued in the Newfoundland and Labrador Offshore Area and work expenditures commitments by operators currently total more than $731 million in future exploration activities.
Max Ruelokke, Chairman and Chief Executive Officer of the C-NLOPB, said that the dedication and commitment of Board staff and their ability to perform extremely well in challenging circumstances made 2007/08 a successful year. Mr. Ruelokke commended the staff of the C-NLOPB for their superb performance and continued hard work.
Further information on the C-NLOPB and a copy of the Annual Report for 2007/08 is available from the Board’s web site at www.cnlopb.nl.ca
Media Contact:
Sean Kelly APR
Manager, Public Relations
(709) 778-1418
skelly@cnlopb.nl.ca