Pursuant to subsection 32(2) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and subsection 32(2) of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act (Accord Acts), the Canada-Nova Scotia Offshore Petroleum Board (the Board) is providing notice of six fundamental decisions respecting Calls for Bids NS18-1 and NS18-2 made on March 21, 2018.  These six fundamental decisions are:

The federal Minister of Natural Resources and the provincial Minister of Energy have notified the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) that they have jointly set aside the implementation of the six fundamental decisions pertaining to the making of Calls for Bids NS18-1 and NS18-2.  The letter CNSOPB received can be found here.

CNSOPB is now determining next steps with respect to future fundamental decisions relating to Calls for Bids NS18-1 and NS18-2. 

Over the past several months, the CNSOPB has undertaken a review of the Canada-Nova Scotia Benefits Plan Guidelines. The purpose of the review was to modernize the guidelines to accurately reflect the CNSOPB’s practices and processes related to Industrial Benefits, which have evolved since the existing guidelines were originally introduced in May 2011. The review has resulted in the drafting of new Exploration Canada-Nova Scotia Benefits Plan Guidelines. 

BP Canada Energy Group ULC (BP Canada) reported on June 22, 2018, an unauthorized discharge of synthetic based drilling mud (SBM) from the West Aquarius Drilling Unit. A preliminary estimate of the volume discharged is approximately 136 cubic metres.

The discharge has been stopped. A remote operated vehicle was launched to determine the source of the discharge. Preliminary indications is that it is from piping that forms part of the mud system approximately 30 metres below sea level.

Drilling operations of BP Canada (BP) continue to be suspended. The CNSOPB has sent two officers and a drilling engineer offshore to investigate the cause of the discharge. This will inform any actions by the CNSOPB.

To resume drilling, the CNSOPB must be satisfied with the responsive steps that BP has taken, and be satisfied that drilling operations can proceed safely.

The CNSOPB will refrain from commenting further on the investigation at this time, as it is ongoing.   

The Canada-Nova Scotia Offshore Petroleum Board’s (CNSOPB) ongoing investigation into the unauthorized discharge of drilling mud that was reported on June 22, 2018 has determined the cause to be a loose connection in the mud booster line. The purpose of the mud booster line is to pump drilling mud into the riser to lift drill cuttings from the well to the drilling unit for processing.

BP Canada Energy Group ULC (BP Canada) has identified and implemented a number of responsive actions to prevent a reoccurrence of this type of failure.  These include:

News Release
For Immediate Release                                                                               

September 26, 2018

(Halifax, Nova Scotia) – The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has received a Project Description from Multiklient Invest (MKI) for a 2D/3D seismic program that could potentially be carried out in the Canada-Nova Scotia offshore area.

In April 2017, the Canada-Nova Scotia Offshore Petroleum Board reviewed and approved an application from BP Canada Energy Group ULC (BP Canada), Interest Representative for Exploration Licences (ELs) 2431, 2432, 2433, and 2434, to enter into a consolidation agreement to consolidate these four ELs.

As per the conditions outlined in the June 2017 agreement, the effective date of the consolidated EL will be the spud date for the first validation well on one of the four ELs. A validation well is a term used to describe the first well drilled on an EL.

On April 20th, 2017, the Canada-Nova Scotia Offshore Petroleum Board (the Board) reviewed and approved an application from BP Canada Energy Group ULC,  Interest Representative for Exploration Licences (ELs) 2431, 2432, 2433, and 2434, to enter into a consolidation agreement to consolidate these four ELs.

The following key elements were considered by the Board in approving the consolidation application:

Please see below for an update on BP Canada (BP) Consolidated Exploration Licence 2434R.

All exploration licences (EL) have a maximum term of nine years, consisting of two periods referred to as Period 1 and Period 2.  Period 1 is six years from the effective date of the EL. Period 2 immediately follows Period 1 and consists of the balance of the nine year term of the EL.  At the end of Period 2, if there are no Significant Discoveries declared that result in the issuance of Significant Discovery Licence(s), the lands as defined in the EL revert to Crown.