May 15, 1997
(Industry, Trade and Technology)

OTC good way to market local expertise

Chuck Furey, Minister of Industry, Trade and Technology, who lead a delegation of 40 oil companies and organizations from the province to the OTC oil conference and exhibition in Houston last week, said today that participation in the premiere oil conference is an excellent way for local companies to market their expertise gained from the province's growing oil industry.

He said: "The companies from Newfoundland and Labrador that participated in the mission found the event to be productive and worthwhile. Many of them recognize the merit in partnerships and strategic alliances, particularly at this exhibition which features international companies that are involved in various aspects of oil development around the world."

Mr. Furey said that while there were varying degrees of success for each company, some of the companies that came away with meaningful contacts and contracts include:

• TUBECRAFT ATLANTIC LTD., using its expertise of manufacturing various products for the Hibernia project, has arranged a contract with a company from the United Kingdom to become their representative in Newfoundland to further market and service control components.

• HI-POINT INDUSTRIES LTD. of Bishops Falls, is preparing a quote with a Columbian Environmental Company for bioremediation work that would utilize Oclansorb, their product used for cleaning up oil spills. They are also presently negotiating a distribution agreement with a Peruvian company and they are looking at expanding in Venezuela, Mexico and parts of South America. Hi-Point also recently secured a contract in Uruguay.

• EAST-CAN TRANSPORT SERVICES LTD., a first-time participant at OTC, developed many new leads from U.S. companies that ship products to Canada. They are presently working on a quote for 12 truckloads of freight out of Houston destined for shipment to the Transshipment Terminal at Whiffen Head.

• GLAMOX NORTH AMERICAN is presently preparing proposals to supply lighting systems for up to 34 new offshore supply vessels and four Jack-Up Production Rigs. They were requested to return late in June to provide capability and product demonstrations to seven Shipyards.

• OCEAN MANAGEMENT TRADING CO. LTD. signed a joint venture agreement with Q.C.I. Offshore Inc. for rig refurbishment, a representation agreement with Tronics of the U.K., and an agency agreement with Carleton Offshore to market five heavy lift vessels. SEA SYSTEMS has formed a joint venture company with Elsag Bailey Canada, and has been successful in obtaining a contract with Hibernia for support services for the platform control systems. This joint venture company is also responsible for the control and safety systems on the Terra Nova platform. SEA SYSTEMS has also been awarded a contract for the offshore and onshore design support for the Sable Gas Project off Nova Scotia.

The mission also enabled Memorial University to obtain workterm placements for students from the Faculty of Engineering. Providing students with the opportunity to work with companies in the Gulf of Mexico broadens the scope of experience for our leaders of tomorrow.

Mr. Furey added that if we are to succeed in developing the economy in our province, the answer lies in pursuing the tremendous opportunities that exist on a global scale. He said: "It is through partnering and forming alliances that our companies can focus on international markets. Developing key contacts at events like OTC is extremely helpful in positioning our companies to pursue the opportunities outside our boundaries, as well as capitalize on the growing oil industry right here in our province."

Mr. Furey also participated in a joint news conference with Premier John Savage of Nova Scotia that outlined oil and gas development off the coasts of Newfoundland and Nova Scotia. Over 20 journalists from international media organizations attended.

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