The Canadian-Nova Scotia Offshore Petroleum Board and the NovaScotia Petroleum Directorate awarded 19 offshore Nova Scotiaexploration licenses and three onshore licenses yesterday for atotal of C$592 million, the largest investment in petroleumexploration ever made in Nova Scotia.

The Sable Island Offshore Energy Project producers, Mobil Corp.,Shell Canada and Imperial Oil, contributed the bulk of theinvestments, C$192 million for six parcels. The largest bid for onelicense was valued at C$93 million and was made by a groupconsisting of PanCanadian Petroleum, Marathon Canada, Murphy Oiland Norsk Hydro.

“This is the start of a new era,” Nova Scotia Premier RussellMacLellan said in a speech at the Offshore Technology Conference inHouston. “It shows that the petroleum sector has confidence thatSable is just the beginning of Nova Scotia’s vast oil and gaspotential.”

The offshore leases were put up for exploration bids inDecember. Offshore leases are good for five years, and up to nineyears under certain conditions. The three onshore tracts awardedtotaled $9.8 million. Onshore leases are valid for three years.

Exploration will spread beyond the Sable Island area to includelands south of the island as well as in the Gulf of St. Lawrence.Offshore activity will also be stepped up with the awarding ofthree-year exploration rights to Hunt Oil and Northstar Energy.

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