November 21, 1996
(Industry, Trade and Technology)

Newfoundland company forms

Mexican joint venture FGA Consulting Engineers Limited, a wholly owned and operated Newfoundland Engineering firm, signed a joint venture agreement today, in Mexico City with Compania de Inspeccion Mexicana, S.A. de C.V. (CIMEX).

Gary Follett, P.Eng., president of FGA, said that the two companies will provide non-destructive testing and quality assurance services within Mexico. He said: "There is tremendous potential for our firm in Mexico, particularly in opportunities that arise in Mexico's oil exploration sector, as well as, the pipeline industry."

With oil reserves estimated to be the eighth largest in the world, the Mexican oil and petroleum industry represents great potential for this partnership. For example, Petroleos Mexicanos (Pemex), the fifth largest oil company in the world in terms of production, intends to spend $6 billion to $7 billion (US) on oil and gas field equipment over the next several years.

FGA will combine the experience it gained on the Hibernia Project, a mammoth $5.2 billion offshore oil project off Canada's east coast, with CIMEX's extensive knowledge of Mexico's larger engineering inspection firms.

Charles Furey, Minister of Industry, Trade and Technology, joined Canadian Ambassador Perron for the agreement signing ceremony at the Canadian Embassy in Mexico City.

Mr. Furey, who led a delegation of Newfoundland and Labrador companies to Chile, that concluded last week, said he is impressed with the increasing number of companies from Newfoundland and Labrador that are becoming involved in foreign markets. He said: "Last week we concluded a successful mission to Chile where all participants recognized the magnificent business opportunities that exist in that part of the world. Today, we have another one of our companies using its world class experience from the Hibernia project, to pursue work in Mexico."

Contact: John Doody, Director of Communications, (709) 729-0050.