January 28, 1999
(Industry, Trade and Technology)

Memorandum of Understanding signed to market Bull Arm Fabrication Site

The long-term potential of the Bull Arm offshore fabrication site has been greatly enhanced by a private sector initiative to market the facility, says Premier Brian Tobin.

"Today, a Memorandum of Understanding was been signed between the Bull Arm Site Corporation and an international joint venture to attract long-term work for the Bull Arm offshore fabrication facility," the premier said during a luncheon address to the Newfoundland and Labrador Ocean Industries Association in St. John's.

"Bull Arm Fabricators, a joint venture of Brown & Root Energy Services, PCL Industrial Constructors, Inc. and ConPro Group Limited will establish a task force to undertake a six month review of world-wide prospects for work at Bull Arm for the onshore and offshore export market," the premier said. "Bull Arm Fabricators will undertake this initiative entirely at their own expense."

The Bull Arm Site Corporation is a provincial Crown corporation which comes under the Department of Industry, Trade and Technology. The site is currently leased to PCL to construct topsides modules and other components for the Terra Nova offshore petroleum project.

"Improvements in productivity achieved during the Terra Nova project will help establish Bull Arm as a globally competitive facility," the premier said. "To maintain this status, continuity of activity and maintenance of the skilled workforce is essential."

Given the long lead time required for bidding processes, the premier says it is prudent to go forward with a marketing effort at this time.

"A significant level of work related to the Terra Nova project will be ongoing at Bull Arm until the latter part of the year 2000," Premier Tobin said. "This international marketing effort is an excellent initiative to help ensure there is no gap between that work, and work related to the development of the next Newfoundland offshore oil field."

While neither party is bound by the results of the marketing initiative, if their efforts are successful Bull Arm Fabricators intend to negotiate access to the Bull Arm site, under terms and conditions that are mutually acceptable to the Bull Arm Site Corporation and Bull Arm Fabricators, the premier said.

"What we have here is an international private joint venture willing to spend their own money to attract fabrication work to Bull Arm," the premier said. "The fact they're prepared to undertake such an initiative at their own expense underscores industry confidence in our fabrication infrastructure and capabilities."

Brown & Root Energy Services, a division of Halliburton Canada, Inc, is a major world provider of project management, engineering, procurement, fabrication, offshore construction and operation of facilities required for the production and transportation of oil and gas.

PCL Constructors, Inc. is part of the PCL family of companies, and is the largest general contractor in Canada. PCL provides construction and fabrication services for the offshore, oil and gas, petrochemical, mining, pulp and paper and power industries.

ConPro Group is a Newfoundland and Labrador based company, which through its subsidiaries SEA Systems and Concrete Products, offers a specialized set of products and services to the construction, offshore oil and gas, technology, and pulp and paper sectors, and also to heavy industries such as mining.

Media contact: Doug Burgess, Director of Communications, (709) 729-0050.

1999 01 28 4:30 p.m.