Minister pleased with continued expenditures in offshore

Charles Furey, Minister of Mines and Energy, says he welcomes the announcement earlier today of a fall Jeanne d'Arc Basin drilling program to be completed by a four company consortium consisting of Chevron Canada Resources, Mobil Canada, Norsk Hydro Canada Oil and Gas Inc. and Petro-Canada.

Since the return to exploration in our offshore last year, petroleum companies expended in excess of $87 million to the end of March 1998. "The completion of a further four wells by this consortium of companies will provide them with the valuable information required to determine the economic feasibility of the discovered resources," says Furey. "Today's announcement is a further indication of the confidence expressed in the potential of the province's offshore and demonstrates industry's commitment to moving our discovered resources closer to development in an effort to build a long-term viable petroleum industry."

In responding to this announcement, the minister specifically noted the results of the Arthur Anderson 1998 Canada Oil And Gas Industry Outlook Survey Results. "Arthur Anderson is one of the major oil and gas professional service organizations in the world," says Furey. "Its 1998 report notes that while there is less optimism in the industry in 1998 as a result of lower oil prices, the outlook specifically highlights the Grand Banks offshore as an area of optimism." Furey added that the report states, "The Canadian offshore is believed to offer the greatest potential for significant oil discoveries."

Furey says he is also pleased that the exploration program will be completed with a very significant contingent of employees from the province. "Since the early 80s, in particular, Newfoundlanders and Labradorians have been involved in exploration in our offshore. I am pleased that 80 per cent of the people involved in this drilling program will be from this province."

Currently the Canada-Newfoundland Offshore Petroleum Board's largest ever Call for Bids is underway on the Grand Banks and it is expected that a significant amount of interest will be expressed in the 13 parcels of land. Interested parties have until September 16, 1998 to submit bids. To date, 23 significant discoveries have been made representing a total of 1.6 billion barrels of oil and 8 trillion cubic feet of natural gas.

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