Prohibition on Arctic Offshore Oil Activities

Summary#

The Order Prohibiting Certain Activities in Arctic Offshore Waters, 2022: SOR/2022-274 is a federal order that continues to block oil and gas work in parts of Canada’s Arctic offshore. It took effect when registered on December 15, 2022, and is set to expire on December 31, 2023.

What it does#

• Prohibits anyone from starting or continuing work or activities authorized under the Canada Oil and Gas Operations Act on certain frontier lands in Canadian Arctic offshore waters for which the Minister of Northern Affairs is responsible.
• Freezes the remaining days on the exploration licences listed in the Order’s schedule so those licences cannot expire while the Order is in effect.
• Repeals and replaces the earlier order (including SOR/2019-280) and remains in force until December 31, 2023.
• Provides time for a five‑year, climate- and marine-based review and for further engagement with northern governments and Indigenous organizations.

Note: the government text repeatedly refers to protecting 11 active exploration licences in the Beaufort Sea, but the Order’s schedule lists many licence identifiers (a total of 80 listed items). The source material contains both figures.

Who's affected#

• Oil and gas licence holders named or covered by the Order. The regulatory statement lists companies such as Imperial Oil, BP Canada, Chevron Canada, ConocoPhillips Canada, and Franklin Petroleum as holders or interested parties.
• Northern and Indigenous governments and organizations involved in the review and engagement, including Crown-Indigenous Relations and Northern Affairs Canada, the Inuvialuit Regional Corporation, and Nunavut Tunngavik Incorporated, plus the Government of Yukon, Government of the Northwest Territories, and Government of Nunavut.
• Northern communities and businesses that would have been involved in Arctic exploration or development.
• The broader oil and gas industry and anyone planning activities in the affected Arctic offshore areas.

Why it matters#

• It pauses oil and gas activity in parts of the Arctic while the federal government and northern partners finish a science-based review. That delays any new exploration or development decisions until after the Order ends.
• Freezing licence terms protects existing licence holders from losing rights that would otherwise expire. Licence holders have already invested about $100 million in exploration, according to the government statement.
• The pause is meant to protect the Arctic marine environment and give time for Indigenous input and northern community engagement. The government notes there have been 69 declared significant discoveries in the Arctic offshore since the 1970s; those discoveries and any future development would remain subject to future decisions.
• The source indicates the renewal is temporary and that further review, consultations, or another renewal could follow.