Ottawa suspends offshore petroleum exploration licence off Sable Island

The federal government has pressed pause on a licence to explore for oil and gas off Nova Scotia.

In October, a company called Inceptio was awarded rights to a parcel of seabed in shallow water near Sable Island.

The exploration licence was issued by the Canada-Nova Scotia Offshore Petroleum Board, which regulates offshore energy development on behalf of both levels of government.

On Nov. 2, federal Energy and Natural Resources Minister Jonathan Wilkinson suspended the licence for 60 days.

"I would like additional time to carefully consider all the available information related to the potential issuance of this exploration licence," Wilkinson said in a statement to CBC News.

"I have communicated this to my Nova Scotian counterpart, Minister Rushton, who has agreed to the 60-day suspension and to further consult with the Board and with other partners."

Nova Scotia agrees to suspension

Tory Rushton's office confirmed his agreement, adding that he did not have time to discuss the licence during the recent sitting of the legislature.

The award of the offshore exploration licence — known in bureaucratic jargon as a fundamental decision — was the first in Nova Scotia in eight years.

The province's two producing offshore natural gas fields — Exxon's Sable Project and Encana's Deep Panuke — both shuttered in 2018.

Inceptio's successful bid was accompanied by a commitment to spend just $1.5 million on exploration activities, in an area where drilling a single well can cost tens of millions of dollars.

CBC News was unable to reach Inceptio president James Edens for comment.

Opposition from environmental group

David Neira, energy co-ordinator with Halifax-based Ecology Action Centre, wants the approval rejected permanently.

"Because we think that this is not aligned with the climate goals of Canada and the climate goals and the commitments of Nova Scotia. There is other industry that can be supported such as the offshore wind development," Neira said.

The Canada-Nova Scotia Petroleum Board declined to comment and referred inquiries to the Department of Natural Resources.

In his statement, Wilkinson said awarding an exploration licence does not, in and of itself, authorize any offshore activity. Project-specific environmental approvals are also required.

"To achieve our shared climate and energy policy objectives, I look forward to continuing our work with the Government of Nova Scotia on the transformation of the regulatory regime for offshore energy, by expanding the mandate of the offshore boards to establish a framework for offshore wind," Wilkinson said.