HOUSTON — Today, the Honourable R. John Efford, Minister of Natural Resources Canada, on behalf of the Government of Canada, approved the conversion of long-standing federal permits in the Laurentian sub-basin into exploration licences. This approval follows fundamental decisions made on April 2, 2004, by the Canada–Newfoundland Offshore Petroleum Board (C–NOPB) regarding permits owned by ConocoPhillips/Murphy Oil Consortium and Imperial Oil Resources Ventures Limited. "I believe these decisions constitute an equitable arrangement for both governments and industry," said Minister Efford. "They recognize the existing rights of these permit holders while committing industry to grow the offshore to the benefit of the region." Under the decisions, the C–NOPB will issue eight new exploration licences to the companies for a work commitment of almost $20 million over the next five years. In return, the companies must abide by terms that include early exploration and early relinquishment of lands. A strategic environmental assessment has already been conducted for the area where the exploration licenses are being issued. The interests of these companies in the Laurentian sub-basin date back to the 1960s, when the Government of Canada issued permits for exploration in the area. Canada later imposed a moratorium on exploration, pending the results of negotiations over boundaries with France, and between Nova Scotia and Newfoundland and Labrador. Subsequently, the C–NOPB and the Canada–Nova Scotia Offshore Petroleum Board (C–NSOPB) were created, with the authority to negotiate exploration licences with permit holders in the relevant offshore areas. Conversion of the permits requires the approval of both the Minister of Natural Resources Canada and the Minister's counterpart in Newfoundland and Labrador within 30 days of the C–NOPB's decision. Because of the unique circumstances in this case, the conversion process and resulting licences differ from the normal competitive bidding process. Negotiations between C–NSOPB and the permit holders continue. The C–NOPB reports to the Government of Canada through the Minister of Natural Resources Canada, and to the Government of Newfoundland and Labrador through the provincial Minister of Natural Resources. The Board consists of seven members who are appointed for fixed terms of office. The Government of Canada and the provincial government appoint three members each, and both governments appoint the Chairman. Further information on the C–NOPB is available at www.cnopb.nfnet.com. For more information, media may contact: Alexandra Muir Ghyslain Charron Director of Communications Media Relations Office of the Minister, Natural Resources Canada Natural Resources Canada Ottawa Ottawa (613) 992-4447 (613) 947-8246
