Business
September 15, 2009
Company Offers Strategic Technical Service to Oil
Industry
with Support from Province
St. John�s company
petroforma inc. is establishing the only commercial laboratory in
eastern Canada to provide detailed reservoir fluid analysis services to
oil companies operating internationally and offshore Newfoundland and
Labrador. The Provincial Government announced today a $500,000
contribution to assist the company.
"Through its experience, petroforma recognized that a service gap
existed in this region that impacts the oil industry, and the company is
stepping forward to offer a solution," said the Honourable Ross Wiseman,
Minister of Business. "The reservoir fluid testing service conducted at
petroforma�s lab fulfills an important need for oil companies and their
clients, and will save them time and money. The presence of this service
will be attractive not only to players in Newfoundland and Labrador, but
also those operating in western Canada and other locations around the
world. Our government�s assistance better enables the company to
capitalize on this export potential."
Fluid analysis is a
highly technical service that provides information that is integral to
effectively managing petroleum reservoirs. Samples of crude oil and
natural gas are taken regularly from offshore and onshore reservoirs to
be analyzed to determine their make-up and behavioral properties. This
information is required to evaluate reserves, develop optimum recovery
plans, and determine quality and quantity of fluids. The results are
often used to make important operating and capital investment decisions
for production, as well as to set conditions for the purchase of
commodities and payment of royalties. Samples taken offshore
Newfoundland and Labrador have historically been sent for analysis to
places such as Alberta, the United Kingdom, and Norway. Having
petroforma�s facilities and services based in Newfoundland and Labrador
will address this regional need by cutting down substantially on the
time and costs associated with sending samples to labs elsewhere.
"With support from the Government of Newfoundland and Labrador, we
now have the experienced human resources and specialized equipment to
position ourselves to earn business from operators at home and around
the world," said Michael Hanrahan, President of petroforma. "We would
never have pursued this opportunity had the province not implemented an
energy plan with a focus on building local capacity and then delivered
on that plan. It is inspiring."
The company�s facilities provide the laboratory space and house
specialized pressure, volume, and temperature (PVT) testing equipment
required to carry out the fluid analyses. As the operation ramps up,
petroforma plans to add nine new highly skilled positions including
petroleum technologists, laboratory technicians, reservoir consultants
and engineers, with an expected average annual salary of approximately
$73,000.
"I am very pleased with today�s announcement," said Tom Osborne, MHA
for St. John�s South. "It is another example of how the oil industry in
this province is providing economic, business and skilled employment
opportunities here at home, as well as the opportunity for local
business to become world leaders in the industry."
With the continued advancement of petroleum developments, such as
Hebron, White Rose expansion, Hibernia South, onshore exploration in
western Newfoundland, and other exploration and development, there is an
increased need for related services. In addition to capitalizing on this
activity, petroforma is already pursuing export opportunities in other
parts of Canada and internationally.
The province�s funding, a non-repayable contribution through the Oil
and Gas Manufacturing and Services Export Development Fund (OGEDF), will
allow the company to purchase essential equipment and offset start-up
costs, and position itself to compete for export-based business.
"Our government is extremely pleased to support business
opportunities such as this, which add to our province�s expanding supply
and service capabilities and expertise, and further elevate our position
as a global oil and gas leader," said Minister Wiseman.
Established in 2007 as a provincial Energy Plan initiative, the OGEDF
is administered by the Department of Business and is designed to support
oil and gas supply companies in the province to expand their markets
through the export of services and products. Budget 2009: Building on
Our Strong Foundation allocated $1.5 million for the fund this
fiscal year.
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