Minister Noel says government succeeding in increasing offshore benefits

Mines and Energy Minister Walter Noel said today: "Government has worked very hard to ensure our province receives maximum benefits from the White Rose project.  We negotiated an agreement with Husky Energy which will see over 80 per cent of topsides engineering, fabrication and integration work take place in this province.  This translates into approximately 2.8 million person hours of work.

"In addition to this, a contract was recently awarded to Bull Arm creating a further 130,000 person hours of employment.  Companies in this province are also winning contracts related to other aspects of the White Rose project that are above and beyond the topsides work commitments.  Yesterday, a contract was awarded to Newdock in St. John�s to complete subsea work.  This contract is outside of Husky Energy�s 80 per cent commitment for topsides work and will create up to 100 jobs for Newfoundlanders and Labradorians over the next year.

"As the numbers currently reflect, including the contracts that have been awarded outside the province, less than 500,000 person hours will be completed at other fabrication yards across Canada.  This work was always anticipated to make up the 20 per cent expected to leave the province.  As for the Building and Construction Trades Council�s assertion that over one million person hours will go to other yards in Canada and worldwide, there is no evidence that has or will happen.

"I can assure the council that the Department of Mines and Energy and the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) are diligently monitoring the employment benefits associated with the White Rose project.  We will ensure the commitments made by Husky Energy are kept, and are succeeding in getting more work.  There are currently over 1,000 people working on all aspects of the project in Newfoundland and Labrador.

"We appreciate that Mr. Parsons and his members are looking for more work.  We have the same objective.  But the fact is that this province will get a greater portion of the engineering, fabrication and integration work on White Rose than from any previous oil project, and we are getting more than was committed."

Media contact: Darrell Mercer, Communications, (709) 729-5777

2003 06 19                                         9:40 a.m.