Newfoundland Offshore Calls for Bids

Summary#

This Gazette entry announces two offshore oil and gas calls for bids and several government procurement inquiries. It also records a permission for a public servant to run in a federal election. The calls open opportunities for exploration licences off Newfoundland and Labrador and set financial and timing rules for bidders.

What it does#

• The Canada–Newfoundland and Labrador Offshore Petroleum Board issued two calls for bids:
  • Call for Bids (Cumulative Parcels) No. NL23-CFB01 offers 28 parcels in eastern Newfoundland waters.
  • Call for Bids (Cumulative Parcels) No. NL23-CFB02 offers 19 parcels in south‑eastern Newfoundland waters.
  • Both calls:
    • Close at 12:00 p.m., Newfoundland Time, on November 1, 2023.
    • Require a minimum “Work Expenditure Bid” of $10 million per parcel.
    • Require a $10,000 bid deposit with each bid.
    • Require the successful bidder to post security equal to 25% of the Work Expenditure Bid within 15 days of being notified.
    • Set Period I of an Exploration Licence at six years, with the option to extend Period I by up to three one‑year extensions if drilling deposits of $5 million, $10 million, and $15 million are posted (each deposit refundable if the well commitment is met).
    • Require that one well be started during Period I.
    • Apply rentals only in Period II at $5.00, $10.00, and $15.00 per hectare for the first three years of that period.
    • Say some parcels partly or wholly beyond 200 nautical miles may have extra legal terms because of obligations under the United Nations Convention on the Law of the Sea (article 82).
    • Require compliance with the Board’s Exploration Benefits Plan rules and payment of issuance fees and Environmental Studies Research Fund levies.
• The Canadian International Trade Tribunal opened inquiries into several procurement complaints:
  • Sila Remediation Inc. filed complaints about remediation contracts in Eureka, Nunavut (File PR-2023-003, inquiry decision April 17, 2023) and Coral Harbour, Nunavut (File PR-2023-005, inquiry decision April 17, 2023). Sila alleges improper evaluation or award.
  • RollanTech Inc. complained about a boiler coil procurement for the vessel Martha L. Black (File PR-2023-002, inquiry decision April 21, 2023), alleging the winning bid failed a mandatory requirement.
  • Chantier Davie Canada Inc. and Wärtsilä Canada Inc. complained about repair work on the CCGS Terry Fox (File PR-2023-006, inquiry decision April 27, 2023), alleging improper re‑evaluation and other issues.
• The Public Service Commission of Canada granted permission and leave to Mikkyal Kevin‑Joel Koshman, a National Defence procurement finance officer, to run as a federal candidate in the electoral district of Kanata—Carleton. The election must take place on or before October 20, 2025. The employee gets a leave of absence without pay during the election period.

Who's affected#

• Bidders and companies in offshore oil and gas exploration, including:
  • Exploration firms, oil companies, and their financial backers.
  • Contractors and suppliers who would work on exploration and drilling.
  • Local businesses and communities in Newfoundland and Labrador that may benefit from contracts and hiring.
• Parties to the listed procurements:
  • Sila Remediation Inc., RollanTech Inc., Chantier Davie Canada Inc., Wärtsilä Canada Inc., and the federal contracting authority Public Works and Government Services Canada (PWGSC).
• Voters and local political organizations in Kanata—Carleton, and the employee named (Mikkyal Kevin‑Joel Koshman) who intends to run.

Why it matters#

• The calls for bids create new chances for offshore exploration projects. Winning bids bring spending commitments, possible local jobs, and business for service companies. They also set clear financial entry costs and drilling obligations that shape which companies can or will bid.
• Parcels beyond 200 nautical miles may face extra legal conditions, which could affect how attractive they are to bidders and how development proceeds.
• The trade tribunal inquiries could change who gets certain federal contracts or lead to changes in procurement practices. That matters to companies that rely on government work and taxpayers who want fair, cost‑effective contracting.
• The Public Service Commission decision is a routine administrative step but tells voters when a public servant is allowed to run and that a leave of absence will be taken if the person is a candidate.