The Government of Newfoundland & Labrador has launched two new licensing rounds for offshore oil and gas exploration, covering frontier areas in the Flemish Pass, Orphan, and Salar basins. The Canada–Newfoundland & Labrador Offshore Energy Regulator (CNLOER) is overseeing these calls, hoping for stronger interest than the previous round in November 2025, which received no bids.

Flemish Pass and Orphan Basin Offering

The first call for bids includes 13 parcels in the Flemish Pass and Orphan area, covering over 2.9 million square kilometers. This acreage was previously offered, including parcels returned to the government and areas reconfigured after technical assessments. Much of this land is near Equinor's Bay du Nord development in the Flemish Pass.

Salar Basin Ultra-Deepwater Offering

The second offering comprises three previously offered parcels, covering more than 7,700 square kilometers in the southern extremities of the Salar basin. This area is located approximately 300 kilometers south of producing oilfields like Hebron and hosts the large, multibillion-barrel Blue Jacket prospect. The Salar basin is described as ultra-deepwater and undrilled.

Bidding Process and Criteria

Companies have until November 4, 2026, to submit sealed bids, with exploration licenses expected to be awarded in early 2027. The sole criterion for selecting a winning bid is the total amount of money committed to exploration spending during the first six years of a nine-year license. A new condition requires prospective bidders to "engage confidentially" with the provincial government regarding its Offshore Exploration Fund, which provides financial support for exploration activities.

Additional Terms and Considerations

For lands entirely or partially beyond Canada's 200 nautical mile (370 kilometer) zone, additional terms and conditions may apply. Some offered parcels overlap with the Northeast Newfoundland Slope Marine Refuge, and the regulator will work closely with fisheries organizations to address any issues. The CNLOER also stated it will continue collaborating with federal and provincial governments to improve the competitiveness of Newfoundland & Labrador's exploration and production sector, including measures to reduce approval times and accelerate the timeline from discoveries to production.

Jeanne d'Arc Region Decision

The regulator has decided not to proceed with a call for bids in the Jeanne d'Arc region this year. Future decisions regarding this area will be assessed annually based on nominations, stakeholder feedback, and land tenure considerations.