Nova Scotia offshore exploration licences up for grabs

The Canada-Nova Scotia Offshore Petroleum Board is hoping to drum up some interest in future offshore natural gas exploration as the Sable Offshore Energy Project winds down.

The board issued a call Monday for bids onsix parcels on the Scotian Shelf.Three are located in shallow water on the Scotian Shelf, south of Sable Island, and three on the outer shelf and slope of the central Scotian margin.

"Exploration wells drilled on parcels 1 and 4 have encountered significant quantities of natural gas," a statement from the board said Monday.

"A comprehensive geoscientific assessment of these parcels highlights that there is potential for significant quantities of hydrocarbons on both the shelf and slope parcels."

Detailed geoscience and regulatory information can be found on www.callforbids.ca, the offshore boardsaid.

• Canada-Nova Scotia Offshore Petroleum Board approves Statoil's $82M bid

Canada's first offshore natural gas project has been pumpingfrom six fields underneath the ocean floor near Sable Island since 1999. The project has generated $1.9 billion in royalties but production levels have fallen in recent years.

OperatorExxon Mobil has said decommissioning could begin as early as 2017, but has not set an end date for Sable.

• Shell Canada gets green light to drill for oil off Nova Scotia coast

Meanwhile, the offshore board says it has already conducted strategic environmental assessments (SEAs) on the new areas to identify potential environmental effects that may be associated with oil and gas activity.

"Should any licences be awarded on these parcels, the findings in these SEAs must be further considered in an environmental assessment specific to any subsequently proposed activity."

The closest mainland points to the parcels areGoldboroandCanso.

The deadline for final bids is Oct. 27, 2016. Written submissions must be submitted by July 4.