The Oil and Gas Company of Newfoundland and Labrador (OilCo) has successfully obtained two exploratory parcels in the Orphan Basin. These licenses were acquired in the 2026 call for bids by the Newfoundland and Labrador Energy Commission (C-NLOER), which closed on November 4. OilCo plans to develop these parcels through negotiations with industrial partners.
Details of the Exploration Parcels
The two exploratory parcels cover an area of approximately 545,021 hectares (equivalent to 1.35 million acres) located in eastern Newfoundland. These parcels are part of 16 proposed parcels in eastern and southeastern Newfoundland, which include lands relinquished in previous rounds and areas returned to government reserves.
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Investment Plans and Accountability
Jim Keating, CEO of OilCo, stated: "Newfoundland and Labrador have globally significant geological potential and proven industrial capacity offshore. However, potential alone cannot generate new investment, especially in frontier areas." He added that the company's decision to pursue the parcels in this year's call signifies a commitment to greater responsibility for the future of this sector.
OilCo has selected these two parcels based on their technical maturity, which includes modern 3D seismic coverage. Independent resource assessments indicate significant potential in these areas. The company will invest approximately $7 million in advanced reprocessing of exploratory signals in the Orphan Basin, which includes parts of the new parcels as well.
Using a collaborative model, OilCo intends to partner annually with companies in the area of relinquishment and does not need to wait for the sale of planned lands. The company is seeking a 10% stake in the project facilities and will not incur any costs for exploratory drilling. Initial costs for these two parcels are estimated at around $1.26 million, which includes proposed deposits, licensing fees, and charges related to the federal environmental studies fund. Additionally, a separate bond of $5 million must be secured within 15 days.
Keating further stated: "Investment in further exploration is discretionary, and countries respond with more flexible licensing conditions and investment approaches." Given the current situation, OilCo has greater flexibility in how it presents these parcels to the industry.
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