Issue link: http://resourceworld.uberflip.com/i/638235
f e b r u a r y / m a r c h 2 0 1 6 www.resourceworld.com 65 have come from offshore oil. In 2014, three major industry players submitted the highest- ever bid for oil exploration rights in the Newfoundland offshore. exxonmobil canada ltd., suncor energy inc. [SU-TSX] and conocophillips canada resources corp. [COP-NYSE] offered $559 million for a single 266,139-hectare parcel located southwest of Statoil's exploration licences in the Flemish Pass basin. Through Nalcor, Newfoundland has spent tens of millions of dollars to generate petroleum industry interest in the potential of frontier areas off Newfoundland and Labrador. Between 2010 and mid-2015, Nalcor and the provincial government spent $43.6 mil- lion on offshore exploration programs. Currently, three operators are producing in offshore Newfoundland: ExxonMobil (Hibernia Field); Husky (Whiterose/ North Amethyst Fields); and Suncor (Terra Nova Field). ExxonMobil's Hebron Field is expected to start production in 2017. Offshore production of oil totaled almost 79 million barrels in 2014. Production to the end of October 2015 topped 50 million barrels. Vital to any such development is the regulatory approvals process. But in recent years government has worked with the Canadian Association of Petroleum Producers (CAPP) and mod- ernized the regulatory system across Atlantic Canada, moving away from the prescriptive, or goal-based, system to an outcome- based one that is "robust and complete", Foote said, and that is faster, allows for easier technological transfer and more innova- tion, although he acknowledged that with deepwater projects the process might take longer. "There has always been a fine balance between what operators see as efficient and the public good," he said. "We're delighted with the last bid round," said Foote. "It was a tremendous percentage, and to see three new players – BP, Nexen and BG – involved in these tough times is wonderful. It seems like a good global response and we think it makes us a player with something to offer." His message for the rest of the industry - "We think you'd bet- ter reckon with us." n Join North America's original and largest gathering of innovators and market-driven changemakers. Register by Jan 31 st and save $300 Save an additional 5% with the code: RESOURCE Bye bye, business as usual. March 2–4, 2016 | Vancouver Register today at globeseries.com