Arctic Offshore Oil and Gas Moratorium Extended

Summary#

The federal government has extended the temporary ban that stops new offshore oil and gas activity in parts of Canada’s Arctic. The Order Amending the Order Prohibiting Certain Activities in Arctic Offshore Waters, 2022 pushes the expiry date out to December 31, 2028, and keeps the existing pause on activity and the freeze on certain licence timelines in place.

What it does#

• Extends the expiry of the existing Arctic offshore prohibition from December 31, 2023 to December 31, 2028.
• Continues to suspend all oil and gas activities in the Arctic offshore waters for which the Minister of Northern Affairs is responsible.
• Keeps the terms of the 11 existing exploration licences in the Beaufort Sea frozen so those licences cannot expire while the ban is in force.
• The amendment comes into force on the day it is registered.

Who's affected#

• The holders of the 11 exploration licences in the Beaufort Sea (their licence terms remain frozen).
• Northern territorial governments: Yukon Government, Government of the Northwest Territories, and Government of Nunavut.
• Northern Indigenous organizations named in the review process, including the Inuvialuit Regional Corporation and Nunavut Tunngavik Incorporated.
• The oil and gas industry with interests in Canada’s Arctic offshore and local northern communities who might be affected by future resource decisions.
• If it is unclear whether any other groups are affected, that uncertainty is noted in the underlying government documents.

Why it matters#

• It prevents the immediate expiry and loss of rights attached to those 11 exploration licences while the government and Northern partners continue a five‑year, science- and Indigenous-knowledge‑based review of Arctic offshore oil and gas policy.
• It keeps a pause on new and ongoing offshore oil and gas activity in parts of the Arctic, which the government says protects the marine environment while it builds climate and marine science knowledge.
• The government states there are no anticipated costs to licence holders from this extension.