Premier advances government's vision for offshore with key industry players

Advancing and promoting Newfoundland and Labrador's oil and gas industry is crucial to the future prosperity of Newfoundland and Labrador says Premier Danny Williams. The premier laid out the province's vision for the future of the industry with several companies while attending the 36th annual Offshore Technology Conference (OTC) in Houston, Texas, May 2-5. Premier Williams met one-on-one with the lead proponent of the Hebron project and one of the major players in the development of natural gas in the Laurentian basin.

"I was pleased to have the opportunity to meet with top executives of Chevron to discuss how we can collectively move the Hebron project forward," said Premier Williams. "We had a very productive discussion about the challenges and opportunities of the Hebron project, and I was encouraged by what I heard. I also laid out very clearly the province's expectations in terms of the benefits we will expect for the people of Newfoundland and Labrador. We must work with industry to see this project progress; however, government will also be vigilant in ensuring proper and fair benefits for the people of the province."

Premier Williams also met with executives from BHP Billiton. This is a major oil and gas company with interests in the development of natural gas in the Laurentian Basin. BHP also expressed an interest in the prospect of natural gas developments in Labrador as part of an overall northern gas strategy.

"The development of natural gas is the next step in building and diversifying our petroleum industry," added Premier Williams. "We must engage interested companies that have the capability and expertise, as we work towards developing the massive natural gas resources offshore Newfoundland and Labrador. The market is ready and now is the time to seize opportunities in this area. Meeting face-to-face with these companies should not be underestimated. We were able to discuss openly and frankly the opportunities in natural gas development and I came away from that meeting buoyed at the prospects for our province in this area."

In addition to these meetings, Premier Williams also spoke at a luncheon for a group of oil and gas executives and an industry breakfast. The premier took those opportunities to highlight several significant milestones achieved this past year in the province's maturing oil and gas industry, and encouraged them to invest and do business in Newfoundland and Labrador. The message was well-received by stakeholders who were very interested to hear of the prospects for natural gas development and the potential of Hebron moving forward. The premier said that hearing about continuing developments and potential in new areas, makes the province more attractive for investment and development.

"All in all, it was an extremely beneficial to attend the OTC," said Premier Williams. "I had the opportunity to meet with stakeholders involved in the Hebron project, the Labrador region, as well as those with stakes in the Orphan and Laurentian basins. It was an ideal opportunity to meet with current players in the Newfoundland and Labrador oil and gas industry and also to encourage new players to come and see what we have to offer. This show is the largest of its kind in the world, and it is vital that the province is seen and heard in a major way. In such an internationally competitive industry, having a strong presence at these shows is absolutely imperative to moving our industry forward."

OTC is the largest offshore oil and gas conference in the world. OTC attracts over 50,000 visitors from 110 countries. Premier Williams led a diverse delegation of over 90 people representing 47 oil and gas sector firms and organizations.

Media contact: Elizabeth Matthews, Office of the Premier, (709) 729-3960, 690-5500, elizabethmatthews@gov.nl.ca

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