May 6, 1998
(Executive Council)

Newfoundland companies sign agreements at Offshore Technology Conference in Houston.

Premier Brian Tobin, leading the largest Newfoundland delegation ever to the Offshore Technology Conference in Houston, says he is pleased with initial announcements arising out of the conference. He said that the international conference is about dealmaking, and "there were certainly many Newfoundlanders experiencing success in making deals down here during this premiere oil and gas venue."

"The Offshore Technology Conference provides Newfoundland and Labrador businesses with an excellent opportunity for exposure to the latest in offshore related technology, allows company representatives to network with industry leaders and to promote their goods and services, thus enabling them to identify new opportunities to continue building a sustainable petroleum industry," said Premier Tobin.

To date, three initiatives have been announced at the conference.

1. ConPro, a subsidiary of SEA Systems Limited, signed two contracts valued in excess of $10 million. The company will design, manufacture, assemble and install the Control and Safety Systems on the Topsides of the Terra Nova Project's Floating Production Storage and Off loading (FPSO) facility. SEA Systems will also provide the Vessel Control and Safety Systems for the FPSO hull, which is presently under construction in Korea by Daewoo.

2. SEA Systems Limited signed a cooperation agreement with Houston-based CorrOcean Inc. Under the agreement, SEA Systems will represent CorrOcean Inc. in Atlantic Canada, supplying high technology products as well as providing engineering inspection and monitoring services. This agreement will result in the transfer of technology from the North Sea and create employment opportunities for technical staff within Newfoundland.

3. Moya Cahill, President of Pan Maritime Energy Services, signed a Memorandum Of Understanding with Guy Cagnolatti, President of Freide Goldman Newfoundland Ltd., for Pan Maritime Energy to provide and exchange project management and engineering services to Freide Goldman Newfoundland Ltd. and other Freide Goldman subsidiaries. This MOU will result in the transfer of technology and engineering services provided within the province worldwide.

Stephen Henley, President of Newfoundland Ocean Industries Association (NOIA), said: "Oil and gas forums such as OTC always provide an excellent opportunity for NOIA member companies to establish or formalize alliances with National and International companies. Alliances such as the ones signed this week greatly enhance our companies' capabilities to compete for large oil and gas contracts."

While in Houston, Premier Tobin met with Mr. J. L. Holloway, chairman and CEO of Freide Goldman International, owners of the shipyard in Marystown, to discuss the company's plans to maximize use of that facility. Premier Tobin says he was informed during the meeting that HAM Marine Inc., a subsidiary of Freide Goldman International, received a contract to build its fifth semi-submersible drill rig for Noble Drilling. Freide Goldman Newfoundland will fabricate the major structural components including pontoons and columns for the semi-submersible rig, translating into 300,000 person hours of work for the shipyard. He said that the work, consistent with the agreement by Friede Goldman to increase employment levels at the shipyard in Marystown, will sustain employment levels for a longer period of time.

Premier Tobin said: "When we sold the shipyard to Friede Goldman, commitments were made to maintain a minimum of 1,200,000 person hours of work. I am pleased to say that to this point, our expectations have been met and exceeded. Earlier this month, Freide Goldman Newfoundland marked the hiring of its 1,000th employee - the greatest number of employees working at any given time during the shipyard's history. This has been consistent with the commitment by Friede Goldman International to the province and to our people."

He added that during their meeting, Mr. Holloway also pointed out that new and substantial work to be carried out at Friede Goldman Newfoundland, which will be announced later this summer.

The premier also met with Dick Chaney, chief operating officer of Halliburton Inc., to discuss an increased presence for his company in Newfoundland and Labrador. Mr. Chaney has committed to increase staffing levels for operations in the province in the near future.

Contact: Heidi Bonnell, Director of Communications, (709) 729-3564.

1998 05 06                            3:35 p.m.