March 11, 2019
Provincial Government to Introduce Legislation to Establish a New Oil and Gas Corporation
Today, the Honourable Siobhan Coady, Minister of Natural Resources, will introduce legislation to establish a new corporation focused on maximizing opportunities for growth in the province’s offshore oil and gas industry.
An Act to Establish an Oil and Gas Corporation for the Province will help realize the goals of Advance 2030 – A Plan for Growth in the Newfoundland and Labrador Oil and Gas Industry. The corporation will drive exploration by attracting new investment, maximizing returns through equity investments, and enhancing local supply chain opportunities by leveraging existing capabilities; positioning this province as a globally preferred location for oil and gas development. Bull Arm Fabrication Inc. will become a subsidiary of the new corporation and support this effort.
The corporation will report directly to the Minister of Natural Resources and will be aligned with government and Treasury Board policies and guidelines. The new entity will receive human resource, financial and other shared services support from core government which will create savings - in line with The Way Forward commitment to create a more efficient public sector. Creating a separate oil and gas corporation will also enable Nalcor Energy to focus on its core business.
The resource potential in Newfoundland and Labrador’s offshore is incredible with over 650 leads and prospects identified to date. Only seven per cent of the province’s offshore potential has been explored, and that has already yielded a combined resource potential of 49.2 billion barrels of oil and 193.8 trillion cubic feet of gas. The oil and gas corporation will continue to do offshore seismic work and other geoscience research required to unlock that resource potential.
This legislation begins the process for establishing the new oil and gas corporation. Next steps will include creating a name and interim board for the corporation, which will be announced at a later date.
Establishing a new oil and gas corporation delivers on commitments in The Way Forward to strengthen the province’s economic foundation. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.
“This new Crown corporation will allow us to realize our plan for growth and delivers on commitments made in Advance 2030 - helping us respond to industry needs and positioning our province as an ideal place for global investment. This is another important step forward in realizing our economic potential for jobs and growth in the oil and gas industry. ”
Honourable Siobhan Coady
Minister of Natural Resources
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2019 03 11 12:40 p.m.