Overview of the Call for Bids

A Call for Bids is a formal announcement by the Board that Exploration Licences (EL), Significant Discovery Licences (SDL) or Production Licences (PL) is available to be awarded through a competitive closed bid process. The land in which the licence is available has either been chosen for the Call by the Board or through a formal nomination, whereby interested parties can nominate specific land parcels that they deem prospective for future Call for Bids.

The Call for Bids specifies:

• The type of interest to be issued (EL, SDL or PL);
• The terms and conditions of the interest;
• The form and manner in which the bid is to be submitted;
• A closing date;
• The sole criterion that the Board will apply in assessing bids submitted in response to the Call.

NEW

The CNSOPB's new strategic direction is aimed at optimizing resource management. The 2008 Call for Bids is consistent with this new approach, and draws on best practices from other jurisdictions. Exploration Licences for these parcels contain new terms and conditions, for example:

• A lower minimum work expenditure bid, reduced from $1,000,000 to $500,000.
• By posting $50,000 upfront, the work deposit is deferred to the end of the third year.
• A 150% credit on allowable expenditures approved in the first three years.
• Deep water parcels allotted an extra year in Period 1 to account for the challenges of exploring in deeper waters.