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The Northern Oil and Gas Annual Report is prepared in accordance with section 109 of the Canada Petroleum Resources Act (CPRA) which notes:
The Minister shall, within ninety days after the end of each year, cause to be prepared a report with respect of the administration of this Act during that year, and shall cause the report to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the day the report is prepared.
Federal responsibility for the management of oil and gas resources on Crown lands north of 60°N in the Northwest Territories, Nunavut and Northern offshore is administered by the Petroleum and Mineral Resources Management Directorate under the mandate of the CPRA by:
Information about northern petroleum resource management regime and the program can be found at: Northern Petroleum Resources.
For information regarding reproduction rights, please contact: CommunicationsPublications@canada.ca
TTY only 1-866-553-0554
ISSN : 1497-1445
©Her Majesty the Queen in Right of Canada, 2018.
This publication is also available in French under the title: Pétrole et Gaz du Nord, Rapport Annuel 2017
Cover photos from Northern Petroleum Resources image bank.
Message from the Honourable Carolyn Bennett, M.D., P.C., M.P.,
Minister of Crown-Indigenous Relations and Northern Affairs
I am pleased to table before Parliament the annual report on the administration of the Canada Petroleum Resources Act (CPRA) in the Northwest Territories, Nunavut and Northern offshore for the year ending December 31, 2017.
In this report, Canadians and all interested parties will find information on the disposition of interests, financial administration of interests, environmental initiatives and royalty management for 2017.
Of particular interest, this report provides a summary of a one-year consultation period with license holders, territorial governments and Indigenous organizations, as well as with other interested parties on their interests, plans and vision for the Canadian Arctic offshore.
These consultations follow the United States–Canada Joint Arctic Leaders' Statement, on December 20, 2016, when the Prime Minister designated all Canadian arctic waters as indefinitely off limits to future offshore oil and gas licensing, to be reviewed every five years through a climate and marine science-based life-cycle assessment.
I invite you to consult this report for further details on the development of Canada's Northern oil and gas resources over the past year.
The Honourable Carolyn Bennett, M.D., P.C., M.P.,
Minister of Crown-Indigenous Relations and Northern Affairs
The Government of Canada maintains a public registry of petroleum interests and instruments registered under Part VIII of the Canada Petroleum Resources Act. This registry is the official record of rights holders, and any transfer of rights or change of ownership must be registered.
Monthly activity reports are available on: Monthly Registry Activities
|Licence||Area (in hectares)||Representative||Effective Date||End of Period 1||Expiry Date||Work Proposal Bid (in dollars)Footnote 1|
|EL317Footnote 2||105,150||BP Canada Energy Development Company||5 Oct 1986||N/A||N/A||N/A|
|EL329Footnote 2||339,434||BP Canada Energy Development Company||5 Sep 1987||N/A||N/A||N/A|
|EL476Footnote 3||205,321||Imperial Oil Resources Limited||1 Sep 2012||31 Jul 2018||31 Jul 2019||585,000,000|
|EL477||202,380||Imperial Oil Resources Limited||1 Sep 2012||30 Sep 2018||30 Sep 2020||1,180,100,000|
|EL478||205,359||BP Exploration Operating Company Limited||1 Sep 2012||30 Sep 2018||30 Sep 2020||15,100,000|
|EL479||203,635||BP Exploration Operating Company Limited||1 Sep 2012||30 Sep 2018||30 Sep 2020||1,100,000|
|EL481||205,946||Chevron Canada Limited||1 Sep 2012||31 Aug 2019||31 Aug 2021||103,300,000|
|EL483||196,497||ConocoPhillips Canada Resources Corp.||1 Sep 2012||30 Sep 2018||30 Sep 2020||2,543,896|
|EL485Footnote 4||29,350||Franklin Petroleum Canada Limited||1 Sep 2012||31 Aug 2019||31 Aug 2021||1,000,000|
|EL488Footnote 4||24,574||Franklin Petroleum Canada Limited||6 Mar 2013||5 Mar 2020||5 Mar 2022||1,251,088|
|EL489Footnote 4||35,544||Franklin Petroleum Canada Limited||6 Mar 2013||5 Mar 2018||5 Mar 2022||1,251,088|
|EL491Footnote 4||100,677||Franklin Petroleum Canada Limited||6 Mar 2013||5 Mar 2020||5 Mar 2022||1,251,088|
|EL492Footnote 4||187,200||Franklin Petroleum Canada Limited||6 Mar 2013||5 Mar 2020||5 Mar 2022||1,251,088|
|EL493Footnote 4||190,650||Franklin Petroleum Canada Limited||6 Mar 2013||5 Mar 2020||5 Mar 2022||1,251,088|
|EL496Footnote 4||14,820||Franklin Petroleum Canada Limited||1 Jun 2014||31 May 2021||31 May 2023||1,000,000|
|Region||Exploration Licence||Significant Discovery Licence||Production Licence||Former RightsFootnote 1||Total|
|Arctic Islands of Nunavut||0||327,981||0||0||327,981|
|Eastern Arctic Offshore||0||11,184||0||0||11,184|
|Hudson Bay||0||0||0||0Footnote 2||0|
|Beaufort Sea||1,868,687Footnote 4||224,623||0||0||2,093,310|
|Norman Wells Proven Area||0||0||0||654||654|
|Total (in hectares)||1,868,687||563,788||0||654||2,433,129|
|By Interest Type (number of licences)|
|Arctic Islands of Nunavut||0||20||0||0||20|
|Eastern Arctic Offshore||0||1||0||0||1|
|Hudson Bay||0||0||0||8Footnote 2||0|
|Beaufort Sea||13Footnote 3||48||0||0||61|
|Norman Wells Proven Area||0||0||0||6||6|
With respect to the United States-Canada Joint Arctic Leaders' Statement from December 20, 2016, Canada has indefinitely suspended the issuance of new oil and gas licences in the Arctic offshore for an initial period of five years during which no Call for Bids will take place. The suspension will be reviewed every five years through a climate and marine science-based life-cycle assessment and does not apply to the onshore areas of Nunavut. As of December 31rd, 2017, there are 13 exploration licences in the Beaufort Sea and the primary rights holders include Imperial Oil, BP, ExxonMobil, ConocoPhillips, Chevron, and Franklin Petroleum.
On January 23rd, 2017, two exploration licences in the Beaufort Sea were surrendered in their entirety in accordance with the Canada Petroleum Resources Act. Likewise, on August 8th, 2017, eight offshore exploration permits in the Hudson Bay were surrendered in their entirety in accordance with the Canada Oil and Gas Land Regulations. Total rights disposition decreased by 967,406 hectares over the course of 2017.
Figure 1 - Map of the Beaufort Sea region
|Title||Representative||Type||Region||Effective Date||Expiry Date||Area (Ha)|
|EL317||Repsol Oil & Gas Canada Inc.||Exploration Licence||Beaufort Sea||05/10/1986||175,810|
|EL329||BP Canada Energy Development Company||Exploration Licence||Beaufort Sea||05/09/1987||339,434|
|EL476||Imperial Oil Resources Limited||Exploration Licence||Beaufort Sea||01/09/2012||31/07/2019||205,321|
|EL477||Imperial Oil Resources Limited||Exploration Licence||Beaufort Sea||01/09/2012||30/09/2020||202,380|
|EL478||BP Exploration Operating Company Limited||Exploration Licence||Beaufort Sea||01/09/2012||30/09/2020||205,359|
|EL479||BP Exploration Operating Company Limited||Exploration Licence||Beaufort Sea||01/09/2012||30/09/2020||203,635|
|EL481||Chevron Canada Limited||Exploration Licence||Beaufort Sea||01/09/2012||31/08/2021||205,946|
|EL483||ConocoPhillips Canada Resources Corp.||Exploration Licence||Beaufort Sea||01/09/2012||30/09/2020||196,497|
|EL485||Franklin Petroleum Canada Limited||Exploration Licence||Beaufort Sea||01/09/2012||31/08/2021||29,350|
|EL488||Franklin Petroleum Canada Limited||Exploration Licence||Beaufort Sea||06/03/2013||05/03/2022||24,574|
|EL489||Franklin Petroleum Canada Limited||Exploration Licence||Beaufort Sea||06/03/2013||05/03/2022||35,544|
|EL491||Franklin Petroleum Canada Limited||Exploration Licence||Beaufort Sea||06/03/2013||05/03/2022||100,677|
|EL496||Franklin Petroleum Canada Limited||Exploration Licence||Beaufort Sea||01/06/2014||31/05/2023||14,820|
|SDL014-CAN||Chevron Canada Limited||Significant Discovery Licence||Beaufort Sea||05/09/1987||190|
|SDL025-CAN||Nytis Exploration Company Canada Ltd.||Significant Discovery Licence||Beaufort Sea||09/02/1988||570|
|SDL026-CAN||Nytis Exploration Company Canada Ltd.||Significant Discovery Licence||Beaufort Sea||09/02/1988||304|
|SDL028||Nytis Exploration Company Canada Ltd.||Significant Discovery Licence||Beaufort Sea||09/02/1988||1,809|
|SDL037||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||24/09/1987||8,034|
|SDL038||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||12/08/1987||6,620|
|SDL039||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||12/08/1987||12,182|
|SDL040||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||12/08/1987||5,190|
|SDL041||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||01/09/1987||10,059|
|SDL047||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||21/08/1987||4,104|
|SDL048||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||21/08/1987||1,740|
|SDL049||BP Canada Energy Development Company||Significant Discovery Licence||Beaufort Sea||21/08/1987||7,627|
|SDL050-CAN||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||8,197|
|SDL051||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||2,368|
|SDL053||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||888|
|SDL054||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||01/05/1987||9,768|
|SDL055||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||2,072|
|SDL058||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||7,168|
|SDL061||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||4,504|
|SDL065||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||22/04/1987||5,081|
|SDL083||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||11,692|
|SDL084||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||6,244|
|SDL085||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||1,396|
|SDL086||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||12,181|
|SDL087||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||3,872|
|SDL088||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||22/02/1989||7,133|
|SDL089||BP Canada Energy Group ULC||Significant Discovery Licence||Beaufort Sea||13/11/1989||10,512|
|SDL091||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||04/05/1990||7,488|
|SDL092-CAN||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||04/05/1990||1,085|
|SDL095||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||04/05/1990||11,051|
|SDL096||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||19/07/1990||353|
|SDL097||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||19/07/1990||1,059|
|SDL110||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||30/01/1992||891|
|SDL111||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||30/01/1992||891|
|SDL112||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||30/01/1992||1,485|
|SDL113||BP Canada Energy Group ULC||Significant Discovery Licence||Beaufort Sea||25/03/1993||4,787|
|SDL114||BP Canada Energy Group ULC||Significant Discovery Licence||Beaufort Sea||25/03/1993||4,795|
|SDL115||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||11/07/1994||3,000|
|SDL116||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||10/06/1998||2,700|
|SDL117||Imperial Oil Resources Limited||Significant Discovery Licence||Beaufort Sea||10/06/1998||900|
|SDL126||ConocoPhillips Canada Resources Corp.||Significant Discovery Licence||Beaufort Sea||01/08/2005||16,618|
|SDL130||Devon NEC Corporation||Significant Discovery Licence||Beaufort Sea||26/04/2007||14,458|
|SDL132-CAN||MGM Energy||Significant Discovery Licence||Beaufort Sea||13/11/2007||38|
|SDL133-CAN||MGM Energy||Significant Discovery Licence||Beaufort Sea||13/11/2007||19|
|SDL134-CAN||MGM Energy||Significant Discovery Licence||Beaufort Sea||13/11/2007||247|
|SDL135||MGM Energy||Significant Discovery Licence||Beaufort Sea||13/11/2007||610|
|SDL136-CAN||MGM Energy||Significant Discovery Licence||Beaufort Sea||17/01/2008||136|
|SDL146-CAN||MGM Energy||Significant Discovery Licence||Beaufort Sea||23/04/2009||507|
Figure 2 - Map of the Arctic Islands region
|Title||Representative||Type||Region||Effective Date||Expiry Date||Area (Ha)|
|SDL043||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||11/08/1987||612|
|SDL044||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||7,163|
|SDL045||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||10,578|
|SDL046||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||4,671|
|SDL066||BP Canada Energy Group ULC||Significant Discovery Licence||Arctic Islands||19/03/1987||3,548|
|SDL067||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||8,198|
|SDL068||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||5,721|
|SDL069||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||12,347|
|SDL070||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||01/09/1987||18,130|
|SDL071||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||5,347|
|SDL072||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||18,389|
|SDL073||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||32,169|
|SDL074||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||32,785|
|SDL075||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||6,112|
|SDL076||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||01/09/1987||8,758|
|SDL077||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||4,276|
|SDL078||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||9,856|
|SDL079-CAN||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||19/03/1987||65,883|
|SDL080||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||01/09/1987||10,355|
|SDL081||Suncor Energy Inc.||Significant Discovery Licence||Arctic Islands||10/07/1987||63,083|
Pursuant to the terms of conditions of exploration licences pursuant to section 24(1) of the Canada Petroleum Resources Act, the Department holds financial security deposits with respect to exploration licences; these deposits are refundable to interest holders under certain conditions. Revenues from the administration of interests include three sources in general: forfeitures, non-refundable rentals, and fees.
|Non-refundable rentalsFootnote 2||53,195||11,219||933||933||933|
Since April 2017, the Government of Canada has been conducting consultations with rights holders, territorial governments and northern indigenous organizations on their existing and future interests in the Arctic offshore. The goals of these consultations have been to clarify the interests and plans of northern stakeholders and to inform next steps concerning the future of Arctic offshore oil and gas exploration and development.
The consultations have also taken into account the reports completed by Ministerial Special Representatives; Mr. Rowland Harrison and his Review of the Canada Petroleum Resources Act and Mrs. Mary Simon's A new Shared Arctic Leadership Model.
The Government of Canada's Budget 2016 provided funding for collaboration with researchers and Inuit communities in order to gather new knowledge of the Arctic environment, to help assess the potential environmental impacts of future offshore oil gas activity in the Arctic. Initiatives funded through the Budget 2016 announcement will inform a key part of the Government's five year science-based review (as mentioned in the Canada-US Joint Arctic Leaders' Statement).
The Beaufort Regional Strategic Environmental Assessment (BRSEA) launched in 2016. The BRSEA will provide strategic direction and analysis of environmental considerations pertaining to future offshore oil and gas activity in the Beaufort Sea, Inuvialuit Settlement Region.
The BRSEA examines the cumulative effects of forecasted development and conservation scenarios; recommends desired environmental outcomes and thresholds; advances baseline information and the state of knowledge for the Beaufort SEA; supports decision-making around possible future resource development and management, environmental conservation programs, subsistence activities and other complementary commercial activities; and, takes into account trade-offs and changes in the state of the ecosystem.
The BRSEA is being developed and led in partnership between the Inuvialuit Regional Corporation, the Inuvialuit Game Council, and the Government of Canada. Two engagement sessions took place with partners and community members in 2017 to identify valued ecosystem components and cumulative effects indicators, set research priorities, and gather input for Traditional Knowledge-based projects.
A Strategic Environmental Assessment (SEA) in Baffin Bay and Davis Strait was also initiated in 2016. The SEA incorporates scientific information, Inuit knowledge and public feedback to assess the potential environmental, social, economic, and cultural impacts of possible future offshore oil and gas activities in the region.
In 2017, the Government of Canada requested that the Nunavut Impact Review Board coordinate the SEA process. The SEA working group also includes the Qikiqtani Inuit Association, Nunavut Tunngavik Incorporated and Government of Nunavut. Community engagement meetings were held in the spring and fall to consider Inuit concerns and traditional use of the region. This input was used to develop the SEA scope.
Details and documents can be found on the public registry at www.nirb.ca.
The Environmental Studies Research Fund (ESRF) is a provision of Part VII of the Canada Petroleum Resources Act, and is funded through levies applied to oil and gas lands held by companies under licence. The research program sponsors environmental and social studies related to the exploration, development and production of oil and gas resources on frontier lands. Based upon the recommendations of the ESRF Management Board, the Minister approved $499,953 for the 2017-2018 Budget.
The Integrated Beaufort Observatory project was ongoing in 2017. Details on ESRF, including annual reports and publications can be found at www.esrfunds.org.
Given that there are no producing fields in Nunavut or in offshore Arctic waters, the amount of offshore royalty received by Canada in the 2017 calendar year is $0.
Pursuant to the Northwest Territories Land and Resource Devolution Agreement, the Norman Wells Proven Area remains under federal jurisdiction. CIRNA continues to collect petroleum royalties associated with the Norman Wells Proven Area and remits such royalties to the Government of the Northwest Territories. Two fields produced oil and/or gas in the Northwest Territories in 2017: the Ikhil gas field on the Mackenzie Delta and the Norman Wells oil field in the Central Mackenzie Valley.
The Ikhil gas field lies on Inuvialuit Lands and continues to be administered by Canada on behalf of the Inuvialuit pursuant to Section 7(94) of the Inuvialuit Final Agreement. Canada's responsibility to collect and remit royalties to the Inuvialuit continues after April 1, 2014, pursuant to the terms of the Northwest Territories Land and Resource Devolution Agreement. These royalties are not reported here.
In 2017, no benefits plans were submitted as no exploration activity was conducted in Frontier Lands under CIRNA jurisdiction.
Subsection 5.2 of the Canada Oil and Gas Operations Act and section 21 of the Canada Petroleum Resources Act require that a benefits plan be approved by the Minister of Crown-Indigenous Relations and Northern Affairs before authorization of any oil and gas work or activity, or approval of a development plan relating to a pool or field on Frontier Lands in Nunavut, the Northwest Territories, and in the Arctic offshore.
To obtain further information, please contact the Directorate by phone or in writing.
Petroleum and Mineral Resources Management Directorate
Government of Canada
10 Wellington Street
Gatineau QC K1A 0H4
Website: Northern Petroleum Resources