Contract awarded for work at the Bull Arm Fabrication Site

Premier Roger Grimes, Mines and Energy Minister Walter Noel and Labour Minister Percy Barrett said today that the awarding of a contract to North Eastern Constructors Limited (NECL) is good news for the province and the Bull Arm Site. Premier Grimes and ministers were joined by Fred Cahill and John Brake of NECL for today�s announcement.

A local partnership comprising M&M Engineering Limited and G.J. Cahill & Company Limited has been awarded a White Rose contract and has entered into a lease to utilize the Bull Arm Site during their fabrication activities. This current scope of work is expected to create over 130,000 person-hours of employment and will have a peak workforce of 150 people. The work will take some 12 months to complete and will commence later this month.

"This is a very positive announcement for the people of Newfoundland and Labrador, and indeed the Bull Arm Site," said Premier Grimes. "Since the completion of the Terra Nova FPSO in 2001, government has been pursuing numerous opportunities to secure work for the site. Today, our activities have proven successful and Bull Arm is once again open for business."

In March 2002, the White Rose proponents, Husky Energy and Petro-Canada, made a commitment to complete 80 per cent of the topsides engineering, fabrication and integration activities in the province. Most of this work is scheduled to be completed at Marystown.

"Government has always remained hopeful that more than 80 per cent of White Rose work would be completed at facilities in Newfoundland and Labrador," said Minister Noel. "We have pursued this objective with Husky Energy and Aker Maritime Kiewit Constructors (AMKC). Today�s announcement ensures that part of the 20 per cent originally scheduled to be completed outside the province, will be completed in Newfoundland and Labrador."

Fred Cahill, President of NECL, said, "We would like to take this opportunity to thank the provincial government, and more specifically the Bull Arm Site Corporation, for the opportunity to use the site to tender this work for the White Rose project. We feel this is a great day not only for NECL and its local workforce, but for the province, as it has once again opened Bull Arm for business. We look forward to building upon the experience and strengths of the two local companies and contributing to the continued growth of our capabilities to service the petroleum industry in Newfoundland and Labrador and Atlantic Canada."

"This is good news for the Bellevue District," said Percy Barrett, MHA- Bellevue. "We have worked long and hard with both government and business interests to bring work back to the Bull Arm site. The reopening of the site is a good beginning and will have a positive impact on the economy of the area; however, we must remain vigilant and continue to work to ensure the site remains open and attracts work to the area for the future benefit of the province and the people of the District of Bellevue."

Government will continue its promotional efforts to attract future work to the state-of-the-art Bull Arm Site.

Media contact:
      Carl Cooper, Office of the Premier, (709) 729-3960
      Darrell Mercer, Mines and Energy, (709) 729-5777
      Janice Lockyer, Labour, (709) 729-1741

2003 04 02                                        4:25 p.m.