Natural Resources
December 30, 2014

Focused on Long-Term Resource Opportunities

Strategic Developments Grow Offshore Oil and Gas Sector

Newfoundland and Labrador has witnessed a multitude of strategic developments that will contribute to the future growth of the oil and gas sector and the provincial economy, including the discovery of oil at Bay du Nord and the new scheduled land tenure system. The year concluded with the success of the Calls for Bids which resulted in a $559 million commitment to exploration in the Flemish Pass Basin and an increase in reserves for the Hibernia field to an estimated 1,644 million barrels of oil.

"It has been quite a year in our province and the natural resource sectors will continue to contribute substantially to the provincial economy and gain local, national and global interest from investors. Our government remains focused on the province's long-term prosperity and responsible resource development for the benefit of Newfoundlanders and Labradorians. We will continue to work with partners both at home and abroad on our many initiatives including petroleum geoscience programs, the new land tenure system, mineral exploration incentive programs, and the Muskrat Falls hydroelectric project."
- The Honourable Derrick Dalley, Minister of Natural Resources

Interest in the mining sector will contribute to continued industry growth and long-term sustainability, despite short-term challenges as a result of low commodity prices. Newfoundland and Labrador is recognized as one of Canada's leaders in iron ore production and there continues to be healthy interest from national and international investors.

Now into the second year of construction, several milestones were achieved this year on the Muskrat Falls Project. This includes the first pour of concrete for the spillway structure for the Muskrat Falls generating facility, completion of the sixth and final bore hole required for the crossing of the Labrador-Island Transmission Link through the Strait of Belle Isle and erection of the first transmission tower on the transmission line being built between Muskrat Falls and Churchill Falls in Labrador.

QUICK FACTS

• The petroleum industry is the largest contributor to provincial GDP with oil production value of $9.4 billion and royalty revenues of $2 billion in 2013.
• As the second largest driver of the economy, mining contributes nine per cent to provincial GDP each year and mineral shipments were $3 billion.
• Construction progressed and significant milestones were achieved for the Muskrat Falls Project.
• The natural resource sectors in Newfoundland and Labrador will continue to contribute substantially to the provincial economy and gain local, national and global interest.
• The Provincial Government is committed to encouraging job creation, strong communities and a vibrant economy with natural resource development of benefit to Newfoundlanders and Labradorians.

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Media contact:

Diana Quinton Director of Communications Department of Natural Resources 709-729-5282, 631-8155 dianaquinton@gov.nl.ca

2014 12 30                              10:20 a.m.