The Official Opposition wants to know why an oil company is closing its local offices and abandoning two lucrative offshore licences.

The licence bids were valued at more than $800 million, and Australia-based Woodside Energy, the company pulling out, will have to forfeit about a quarter of that, or more than $200 million, to the province as a result.

The news, first reported by the online allNewfoundlandLabrador, “casts doubt on the future” of the province’s offshore, says PC Leader David Brazil.

He says it’s troubling that companies are willing to take major financial hits to get out of the industry and the province.

Energy Minister

Meanwhile, in a response to the story and Brazil, Energy Minister Andrew Parsons conceded it was disappointing to hear of Woodside Energy’s decision.

He says it was a business call by the new BHP/Woodside partnership, adding there’s still good reason to be optimistic for Newfoundland and Labrador’s offshore oil and gas industry.

Parsons noted both ExxonMobil and Equinor have been conducting drilling exploration this season, with more planned for next year.

As well, he says there remains “significant interest” in the province’s offshore oil and gas, adding he’s looking forward to the results of this year’s call for bids.