Thorunn Howatt
Northern News Services

Yellowknife (May 20/02) - Energy companies committed more than $14 million last week in the search for oil and gas in the Mackenzie Delta and Beaufort Sea.

That's part of the money that makes up about $1 billion total in exploration spending in that area. The 2002 annual Central Mackenzie Valley and Beaufort Sea call for bids closed last week. The winning bidders will be issued exploration licences.

Chevron Canada Resources partnered with BP Canada Energy Company on a winning bid to explore on 18,912 Beaufort hectares. Chevron led the team to commit $13.2 million worth of work in the area.

In a different bid, Devon ARL Corporation partnered with Petro-Canada, committing $1.1 million to explore 28,190 Beaufort hectares.

There was a call for bids in the Sahtu, central Mackenzie Valley, region but no bids were received.

The Department of Indian and Northern Affairs issues new exploration rights licences by holding annual calls for nominations in the central Mackenzie Valley, the Beaufort Sea-Mackenzie Delta and the Arctic Islands of Nunavut.

Companies respond by nominating land. Nominating means the right to put the land up for sale. The calls for nominations closed last December. Next the federal government called for bids on the nominated land.

There was no land nominated in Nunavut.

Companies respond to the call and can earn Crown rights by promising to spend the highest work dollar-value for the period of the licence. Usually one well has to be drilled during the licence term, keeping up interest for Northern energy development.