Launch Drilling Oil and Gas Wells in Victoria
This page is your practical starter guide to launching a drilling oil and gas wells business in Victoria, BC (NAICS 213111). It breaks down the seven requirements you’ll need to meet, the permits you’ll apply for, typical startup costs, and a realistic timeline from setup to first well. Use these insights to plan confidently and avoid detours as you move from idea to operation.
Here’s what you’ll learn: the seven requirements you’ll need to meet, how to secure land access and leases, how to apply for drilling permits from the regulator, and what environmental and safety assessments are required. We also cover essential licenses, financial assurance, and insurance, plus the costs and a practical timeline to help you budget and pace your project.
Victoria offers a supportive regulatory environment, access to skilled energy services, and a convenient hub for logistics on Vancouver Island and beyond. With a clear plan and the right steps, starting a drilling operation here can be a solid, achievable move for your energy business.
Requirements Overview
The most critical requirement for operating a drilling oil and gas wells business in Victoria is Explosives License and Magazine Storage. This license and the secure storage of explosives are legal requirements you cannot operate without, and non-compliance can stop your project and lead to penalties. Treat this as non-negotiable from day one: obtain the proper explosives license, set up compliant magazine storage, and keep all licenses and storage arrangements up to date.
Mandatory Operational Requirements: Health, safety, and permits. In addition to explosive licensing, you must meet core health and safety rules. This means securing WorkSafeBC coverage for your workers, implementing safety training and procedures, and maintaining a strong safety program. You’ll also need the appropriate permits to operate locally, such as a valid Business Licence from the municipality, and ensure your business identity is properly established (see the next paragraph) so you can run legally and safely.
Business Registration & Tax: You’ll need key registrations to run a compliant business. This includes a Business Number (BN) registration with the federal government for taxes and payroll interactions, and BC Business Name Registration if you operate as a sole proprietorship or partnership. Tax registrations often include GST/HST registration (if your revenue meets the threshold or you choose to register), and Payroll Deductions registration if you have employees. Getting these in place early keeps your finances and reporting organized and compliant.
Next steps and encouragement: Start by confirming the explosives licensing and magazine storage requirements with the relevant provincial authority, then secure WorkSafeBC coverage and the local business licence. Next, set up your business name and BN, and complete any GST/HST and payroll registrations you’ll need. If you’d like, I can map out a simple checklist and a timeline tailored to your exact operation to keep you on track and
Detailed Requirements
Here are the specific requirements for starting a drilling oil and gas wells in Victoria:
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Explosives License and Magazine Storage RequiredCompanies using explosives for mining/blasting must obtain federal explosives licenses, magazine storage permits, and comply with handling, transport, and security requirements. Natural Resources Canada (NRCan) regulates explosives. License/permit for manufacture, storage, sale, possession. Magazine storage requirements. Blaster certification. Security screening. Annual inspections. Fireworks: separate categories. Contact NRCan Explosives: 1-855-283-8889.
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Business Number (BN) Registration RequiredA 9-digit Business Number is required for most businesses operating in Canada. It is used to interact with the Canada Revenue Agency and other federal programs. Required for GST/HST, payroll, corporation income tax, and import/export accounts. Register FREE online through Business Registration Online (BRO) at canada.ca. Takes 15-30 minutes. As of November 3, 2025, online registration is MANDATORY for new BNs - phone registration no longer available. You'll need: business name, address, owner SIN, business type, and start date. BN (9-digit number) issued INSTANTLY online. Available 21 hours/day, 7 days/week (closed 3-6am ET for maintenance).
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Business Licence RequiredGeneral business licence required to operate a business in City of Victoria. Apply to City of Victoria for Business Licence: 1. Determine business category 2. Complete business licence application 3. Submit required documents (ID, lease, zoning confirmation) 4. Pay application and annual fees 5. Await approval and receive licence Contact City of Victoria Business Licensing for specific requirements. Home-based businesses may have different requirements. Annual renewal required.
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BC Business Name Registration (Sole Proprietorship/Partnership) RequiredRegistration of sole proprietorship or partnership business names with BC Registries Register sole proprietorship or partnership at bcregistry.gov.bc.ca. Name reservation: $30 (standard) or $100 (priority 1-2 days). Registration fee: $40. Total: ~$70. Name reserved for 56 days after approval. Registration is continuous (no renewal required). No name protection for sole proprietorships. Personal names operating under own name do not require registration. Contact BC Registries: 1-877-526-1526.
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GST/HST Registration ConditionalRequired if annual taxable revenue exceeds $30,000 (small supplier threshold). Taxi/ride-share drivers must register regardless of revenue. Businesses with gross revenues over $30,000 in any single quarter or over four consecutive quarters must register for, collect, and remit GST/HST. Small suppliers (under $30,000) may register voluntarily. Register FREE online through Business Registration Online (BRO) when your revenue exceeds $30,000 in any 4 consecutive quarters (small supplier threshold). Takes 15-30 minutes. You MUST register within 29 days of exceeding threshold and start charging GST/HST immediately on the sale that made you exceed it. Need your BN (or get one simultaneously). As of Nov 3, 2025, online registration is mandatory. Voluntary registration available anytime for input tax credits.
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Payroll Deductions Registration ConditionalRequired if you pay salaries, wages, or other remuneration to employees. Must register before first pay period. Required if you have employees. You must withhold Canada Pension Plan (CPP), Employment Insurance (EI), and income tax from employee wages and remit to CRA. Register FREE online through Business Registration Online (BRO) when you hire your first employee. Takes 15-20 minutes. You'll need your Business Number (BN) or can get one simultaneously. Payroll account (RP) added to your BN instantly. Register BEFORE your first pay date. Required to deduct CPP, EI, and income tax from employee wages. For 2025: CPP rate 5.95%, EI employee rate $1.66/$100 insurable earnings.
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WorkSafeBC Coverage and Registration ConditionalRequired if you have workers in BC. Workers compensation insurance coverage through WorkSafeBC for employers in British Columbia WorkSafeBC coverage required for most BC employers. Average base premium rate: 1.55% of assessable payroll ($1.55 per $100). Register online at worksafebc.com. Apply 30 days before starting business or hiring workers. Processing: ~10 business days. Premium rates vary by industry classification (514 classification units). COR certified employers eligible for 10% rebate. Contact: 604-276-3100 or 1-888-967-5377.
Funding & Grants
Available funding programs that may apply to your drilling oil and gas wells:
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The Ignite Program provides up to $300,000 to BC-based industry-academic teams for R&D projects in natural resources, applied science, and/or engineering. Projects must be at TRL 3 or above, have commercialization potential within 3 years, and secure 2:1 matching funds from industry or government sources. Funded by the Natural Resources …
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Under the CIIP, eligible industrial facilities reporting under the Greenhouse Gas Industrial Reporting and Control Act (GGIRCA) and emitting more than 10,000 tCO2e per year could receive a payment equal to all carbon tax paid above $30 per tCO2e, provided their emissions intensity met the world-leading benchmark for their sector. …
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The Alberta Carbon Capture Incentive Program (ACCIP) provides non-repayable grants equal to 12% of eligible capital costs for new CCUS projects, including equipment to capture, compress, transport, store or utilize carbon dioxide. The program is retroactive to January 1, 2022, meaning eligible capital costs incurred since that date qualify. Grants …
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Natural Resources Canada (NRCan) launched six prize-based challenges under the Impact Canada Initiative's Clean Technology Stream, backed by $75 million in federal funding announced in Budget 2017. The challenges—including Crush It!, Power Forward, Sky's the Limit, Charging the Future, Women in Cleantech, and the Indigenous Off-Diesel Initiative—used prize-challenge methodology to …
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A $50 million federal program (Budget 2017) that funded demonstration and testing of clean technologies in oil sands extraction, LNG production, emissions detection and monitoring, heat/water recovery, and alternative low-carbon power technologies for oil and gas facilities. All funding has been allocated and the program is fully closed.
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