ST. JOHN’S, NL, November 4, 2026 – The Oil and Gas Corporation of Newfoundland and Labrador (OilCo) today announced successful bids on two parcels in the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER) 2026 Calls for Bids, which closed earlier today. The successful bids support OilCo’s strategy to attract investment and advance exploration in Newfoundland and Labrador’s offshore.
The two parcels are located in the Orphan basin in the Eastern Newfoundland Region and encompass approximately 545,021 hectares. This year’s Calls for Bids included 16 parcels across Eastern and South Eastern Newfoundland. The Eastern Newfoundland parcels comprise acreage previously offered through earlier licensing rounds, including some areas returned to Crown reserve.
“Newfoundland and Labrador has world-class geological potential and a proven offshore industry. But potential alone doesn’t create new investment, particularly in frontier areas,” said Jim Keating, CEO, OilCo. “Our decision to pursue parcels in this year’s Calls for Bids is about taking greater responsibility for our future. We want to create opportunities, engage investors directly, and make Newfoundland and Labrador more competitive.”
OilCo selected these parcels for their technical maturity, supported by years of investment by the company and other companies, extensive modern 3D seismic coverage, and geological work. Independent resource assessments indicate substantial resource potential across the bid areas and support OilCo’s view of their prospectivity. OilCo is investing approximately $7 million in advanced seismic reprocessing in the Orphan basin, including areas of the selected parcels, to improve imaging and prospect evaluation.
For the two parcels, initial cash funding totals approximately $1.26 million including refundable bid deposits, issuance fees, and federal Environmental Studies Research Fund (ESRF) levies. The $1.23 million in ESRF levies and a separate $5 million security or letter of credit are due within 15 days. Once the security is posted, the $20,000 in bid deposits will be refunded.
The initiative reflects a changing global environment for exploration investment, with many frontier offshore jurisdictions adopting more flexible approaches to attract capital and advance exploration. OilCo’s model is designed to complement the existing licencing system by creating an additional pathway for companies to evaluate opportunities, engage with prospective partners, and advance exploration activity.
OilCo will invite companies to partner on these licences through negotiated farm-down arrangements. The model allows companies to engage throughout the year rather than wait for a scheduled land sale, creating a clearer path from technical evaluation to acreage access. OilCo’s commercial objective is to negotiate a 10 per cent back-in at project sanction, with no OilCo funding of exploration drilling. Through direct negotiations, OilCo will seek the best value for Newfoundlanders and Labradorians while encouraging investment and advancing exploration activity.
“Our research shows that the international market for exploration has changed,” added Keating. “Exploration capital is more selective, and countries are responding with more flexible licensing terms and investment approaches. As of today, we have greater flexibility in how we offer these parcels to industry.”
OilCo sees the successful bid on these parcels as an opportunity to promote Newfoundland and Labrador’s offshore potential, engage directly with prospective investors, and support future exploration activity.
About OilCo
OilCo’s mandate is to advance Newfoundland and Labrador’s offshore oil and gas opportunities by promoting investment, enhancing technical understanding of the basin and facilitating industry participation in exploration and development activities.
Media Contact
Karen O’Neill
e. karenoneill@oilconl.com
c. +1 709-690-2012
