At present, the province has offshore royalty regulations in place, however, these are supplemented by specific royalty agreements with the operators of each current offshore oil development. To help proponents of potential future developments assess project economics, the Department of Natural Resources has recognized the need for a more generic royalty system for offshore oil development. As a result, in 2008-09 the department initiated work toward the development of the Generic Offshore Oil Royalty Regime.
The intention is for the Generic Offshore Oil Royalty Regime to follow the pattern set by the Natural Gas Royalty Regime, the structure of which formed part of the province’s 2007 Energy Plan. Detailed Natural Gas Royalty Regulations are under development and are expected to be promulgated in 2010. Once the development of the Natural Gas Royalty Regulations has been completed, the department intends to use these as a guideline for the development of the Generic Offshore Oil Royalty Regime.
For detailed information on existing offshore projects view Offshore Projects.