The Board regulates the petroleum resources in the Newfoundland and Labrador offshore area on behalf of the Government of Canada and the Government of Newfoundland and Labrador. Its authority is derived from the legislation implementing the 1985 Atlantic Accord between the two governments.

The Board has a duty to ensure that management of offshore land rights takes place in an orderly way; that assessments of the resource potential of the offshore area are completed on a timely basis; offshore exploration and production activities are conducted in a safe and environmentally responsible manner; exploitation of the resource is conducted in accordance with good oilfield practice to optimize recovery and avoid waste; and operators' procurement decisions are consistent with their statutory obligations and agreements with governments to provide economic and social benefits to Canada, and in particular to Newfoundland and Labrador; and it provides guidance to industry regarding regulatory requirements and encourages continuous improvement in practices that provide for worker safety and environmental protection.