The approval follows the Canadian Environmental Assessment Agency’s the Environmental Assessment Report, which claimed that the project is unlikely to cause significant adverse environmental effects.
The approval is subject to conditions, which include mitigation measures, the significance of any remaining adverse environmental effects, and follow-up programs requirements prior to proceeding with the project.
The Shell-led project includes drilling of up to seven exploration wells over a four year period, starting with two wells drilling this year.
The wells are located in water depths of between 500m and 3,500m within exploration licenses 2423, 2424, 2425, 2426, 2429, and 2430, covering an area of 19,845km².
Shell Canada will determine specific drilling locations using seismic data, which was gathered as part of the Shelburne Basin 3D Seismic Survey carried out in 2013.
Shell owns 50% stake in the project, while joint venture partners ConocoPhillips and Suncor Energy hold 30% and 205 interests respectively.
