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Newfoundland and Labrador offshore venture receives EDGE status Industry, Trade and Technology Minister Sandra Kelly today announced that Pan-Maritime Energy Services (PAN-MAR) of St. John's has been granted approval under the province's Economic Diversification and Growth Enterprises (EDGE) Program. EDGE status will be applied to Pan-Maritime Production Services Ltd., which intends to develop, own and operate offshore production platforms. "This is a comprehensive overture by Newfoundland and Labrador engineering and offshore companies to capitalize on the wealth of local expertise that has been developed over the past two decades," Kelly said. "Granting EDGE status to PAN-MAR advances an opportunity for a local firm to maximize every facet of our offshore potential, from project engineering, to offshore exploration, to production of the resource." Moya Cahill, president of Pan Maritime Energy Services Ltd., says that she and partners David Fong and David Rees have been looking for innovative means to participate more substantially in the province's long-term offshore development. "As Newfoundlanders building, owning and operating Newfoundland and Labrador offshore infrastructure, we'll have the interests of our province, our industry, and our people at heart," Cahill said. "We intend, to the extent possible, to maximize benefits from the project management, engineering, procurement, construction and operation of production platforms within the province of Newfoundland and Labrador." Kelly says PAN-MAR's innovative approach to offshore opportunities underscores the capability, attitude and confidence of the local oil and gas sector, and reflects the positive evolution and maturing of provincial offshore expertise. "This project would greatly enhance Newfoundland's participation in the development of our offshore resources, while clearly strengthening Newfoundland and Labrador's position as the oil capital of the east coast of Canada," Kelly said. Cahill described the EDGE status as a win/win for both Pan Maritime Energy Services Ltd. and the province's oil and gas industry. "We believe that Newfoundland and Labrador companies can and will play a major role in the development and operation of our offshore." Cahill said: "EDGE has provided us with a competitive vehicle to move forward with our plans." Cahill says that since obtaining EDGE approval, PAN-MAR has received overwhelming support from both the industry and the financial community, adding that CIBC's oil and gas division has teamed with PAN-MAR as its financial advisors on the initiative. She noted that the industry has been intrigued with the concept of a Newfoundland-owned production company. Cahill says that PAN-MAR has been working with Friede Goldman Ltd., a New Orleans-based naval architecture firm, and J. Ray McDermott of Houston on the design of a floating production, storage and off loading (FPSO) vessel. She notes this is a similar concept as that being developed for Terra Nova, and is one of a number of production concepts that is applicable to development of the east coast offshore. Cahill says that Pan Maritime Energy Services Ltd. stems from the recent merger of MNC Group, Inc. and RDS Engineering Ltd. She adds that as indigenous Newfoundland firms, they have had extensive involvement in the east coast offshore development. During the Hibernia development, RDS had a combined engineering team of over 150 technical personnel working in St. John's, Mississauga and Paris. MNC was involved with the quality inspection and expediting of Hibernia's Gravity-Based Structure (GBS), and is presently involved in the Sable offshore energy projet through its project management support contract under its partnership in the East Coast Offshore Alliance. "EDGE was designed as a program to encourage new and innovative development opportunities for Newfoundland and Labrador," Kelly said. "It's encouraging to see locally-based companies taking the initiative to maximize our offshore opportunities for the benefit of Newfoundlanders and Labradorians." Contact: Moya Cahill
Doug
Burgess ----------------------------- The Economic Diversification and Growth Enterprises Program EDGE is a Newfoundland and Labrador business incentive program that features among other benefits, a 10-year tax break from the provincial corporate income tax and provincial payroll tax, plus a five-year phase in. Municipalities in which the ventures are based can also opt to offer parallel tax relief from business or property tax, or both. To be designated an EDGE corporation, an applicant must show potential for minimum capital investment of $300,000 or incremental sales of $500,000 annually; the potential to create and maintain at least 10 permanent jobs, and must provide a substantial net economic benefit to the province, among other requirements. 1998 12 23 3:00 p.m.
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