Successful Meetings Held with Petroleum Companies in China

During the ongoing trade mission to China, the Honourable Kathy Dunderdale, Premier of Newfoundland and Labrador, met with representatives of the Chinese National Offshore Oil Company and Sinopec Group to discuss investment opportunities in Newfoundland and Labrador’s offshore area. Also present at the meetings were the Honourable Tom Marshall, Minister of Natural Resources, the Honourable Jerome Kennedy, Minister of Finance, and Ed Martin, President and Chief Executive Officer of Nalcor Energy.

“These petroleum companies have prioritized Canada as key to their growth plans and expressed great interest in Newfoundland and Labrador and our resource potential,” said Premier Dunderdale. “We clearly have a common outlook that is centred on a long-term relationship of mutual gain. The companies have agreed to follow up with officials from the Department of Natural Resources and Nalcor Energy to undertake further discussions and to exchange information.”

While meeting with the companies, the Premier provided an overview of the province’s offshore activities highlighting recent investments by the Provincial Government in geoscience. These investments are intended to lower barriers and reduce the risk to companies considering entry into Newfoundland and Labrador’s offshore. To date, investments in Canada by Chinese National Offshore Oil Company (CNOOC) and Sinopec Group have focused on the oil and gas plays in western Canada.

“With the recent deepwater discovery by Statoil in the Flemish Pass basin and the doubling of the sedimentary basin size in Labrador, the world has certainly taken notice,” said Minister Marshall. “I am confident that our visit to Beijing will bring new partners in the exploration and development of the province’s growing offshore.”

It is projected that by 2025, China’s consumption of oil will grow by 50 per cent and imports of oil will be 78 per cent of the projected 15 million barrels required daily. About half of the globally available oil reserves for China will come from Canada.

“Developing new relationships is key to maintaining momentum in Newfoundland and Labrador’s offshore industry,” said Minister Kennedy. “These meetings have been very positive, and by exploring such investment opportunities in our province, we are securing our place in the global energy market.”

- 30 -

Media contacts:

2013 06 26             9:40 a.m.