Monday 9 January 2017

The Canadian government says it won’t grant extensions to exploration licenses for Exxon Mobil Corp., BP plc and other oil firms as it prepares for consultations over the impact of an Arctic drilling moratorium.

The companies hold leases that expire over the next six years, totaling C$1.9 billion ($1.4 billion) in bids. Prime Minister Justin Trudeau and U.S. President Barack Obama announced new restrictions on Arctic oil development on Dec. 20, with Canada saying existing leases wouldn’t be affected without industry input on a path forward.

In an online background document, however, Trudeau’s government specifically ruled out lease extensions sought by industry before the new restrictions were put in place. Companies had expected that to be a central part of talks.

“Our understanding is they’ll have consultations and conversations with industry, in particular the license holders, with respect to extensions,” said Paul Barnes, Atlantic Canada and Arctic manager for the Canadian Association of Petroleum Producers, the top industry lobby group. “We’re kind of anxious to have further discussions.”

Indigenous and Northern Affairs Minister Carolyn Bennett, who oversees Arctic oil regulation, has declined interview requests since the announcement. Bennett’s spokeswoman, Sabrina Williams, referred questions about extensions to the department.

More - http://www.rigzone.com/news/oil_gas/a/148022/Canad...