The Oil and Gas Corporation of Newfoundland and Labrador (OilCo) has won two parcels in the Orphan basin in the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) 2026 Calls for Bids, which closed Nov. 4. The province’s energy corporation plans to bring in industry partners through negotiated farm-downs. The two parcels cover about 545,021 ha (1.35 million acres) in the Eastern Newfoundland Region. They were among 16 parcels offered across Eastern and South Eastern Newfoundland, which included acreage from earlier rounds and some areas returned to Crown reserve.
“Newfoundland and Labrador has world-class geological potential and a proven offshore industry. But potential alone doesn’t create new investment, particularly in frontier areas,” said Jim Keating, CEO of OilCo. “Our decision to pursue parcels in this year’s Calls for Bids is about taking greater responsibility for our future.”
OilCo said it chose the parcels for their technical maturity, including extensive modern 3D seismic coverage, and that independent resource assessments point to substantial potential. The company is investing about $7 million in advanced seismic reprocessing in the Orphan basin, including parts of the new parcels.
Under its model, OilCo will negotiate farm-downs with companies year-round, without waiting for a scheduled land sale. It is seeking a 10% back-in at project sanction and will not fund exploration drilling. Initial costs for the two parcels total about $1.26 million, including bid deposits, issuance fees and federal Environmental Studies Research Fund levies. A separate $5 million security is due within 15 days.
“Exploration capital is more selective, and countries are responding with more flexible licensing terms and investment approaches,” Keating said. “As of today, we have greater flexibility in how we offer these parcels to industry.”
Source: worldoil.com