The Department of Natural Resources, in partnership with the Greater Corner Brook Board of Trade, has awarded a contract to study future business opportunities in oil and gas exploration and development in western Newfoundland. CBCL Limited of Corner Brook won the contract for the study, Infrastructure and Supply and Service Requirements and Opportunities for Western Newfoundland Oil and Gas Industry.

"Western Newfoundland holds tremendous potential for oil and gas development and this study will help companies and communities in the region to maximize benefits from this development," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This study will also help western Newfoundland oil and gas companies by identifying opportunities for local businesses to provide them with more of the products and services they need."

In December 2007, the department issued a Request for Proposals for the study, which is the first phase of a three-phase project. The later phases will include a regional development strategy and an implementation plan. The first phase will identify infrastructure needs, and supply and service opportunities, including direct or indirect employment opportunities, arising from exploration and development of western Newfoundland�s onshore and offshore oil and gas resources.

"This is a very important initiative for our members and for the entire region," said Shawn Woodford, president of the Greater Corner Brook Board of Trade. "We are pleased this study is under way and we look forward to seeing the final report. It will be an important educational and long-term planning tool, while we continue to focus on promoting exploration in the short-term."

The department partnered with the Greater Corner Brook Board of Trade through its Western Newfoundland Regional Oil and Gas Steering Committee. The goal of the committee is to develop a structured plan to help promote oil and gas exploration and development in the western region.

"With the potential for significant oil and gas discoveries in western Newfoundland, it is essential that we understand how development might unfold over the next 10 to 15 years," said Minister Dunderdale. "A study such as this can provide us with very valuable information on developing this sector for the benefit of the region and the entire province."

The study is part the Provincial Government�s strategy to build momentum in western Newfoundland�s oil and gas industry. The Provincial Government also recently launched the $5 million Petroleum Exploration Enhancement Program, which will increase geoscientific knowledge of the region to improve the chances of onshore oil and gas discoveries in the province. Recent land sales and new drilling and seismic exploration programs continue to demonstrate companies� confidence in the prospects for new oil and gas discoveries in the region.

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2008 02 01                                                      9:25 a.m.