Noia says based on the geologic and scientific information available, this should have been an exceptional bid round in the province’s offshore.

Instead, just a single bid from BP Canada was successful this year.

Noia CEO Charlene Johnson says global investment is down and while they understand some jurisdictions have had low levels of exploration investment, it is still taking place.

Johnson points to Norway and the UK where 33 and 65 companies respectively bid on offshore land parcels in September.

She says Newfoundland and Labrador’s prospectivity remains world-class, but it’s Noia’s understanding that the poor bid round result was due to a combination of scarce capital and a more competitive atmosphere with shorter development times in other jurisdictions.

While Johnson is pleased to see BP Canada bidding and committing to the province’s offshore, the focus must now shift to ensuring that Newfoundland and Labrador has an appropriate climate to encourage exploration.