Kathy Dunderdale, Minister of Natural Resources
August 20, 2008
- Good afternoon everyone. This is
indeed a tremendous day to be Minister of Natural Resources in
Newfoundland and Labrador.
- We have achieved unprecedented local
industrial and employment commitments for this development. Our
fourth offshore oil project will provide the opportunity for as much
work as our fabrication facilities, including Bull Arm and Marystown,
- The deal we are announcing today
commits more fabrication work within the province than Terra Nova or
White Rose. This is a result of our firm stance on maximizing
industrial benefits for this province and of the world-class
expertise and capacity that we have developed here.
- The topsides work committed in this
agreement will provide significant fabrication employment. Not only
will a significant amount of the topsides be constructed in the
province, but the detailed engineering associated with each of those
components will also be done in the province.
- During the production phase, we
anticipate continued employment for Newfoundlanders and Labradorians
over the 20- to-25-year life of the project.
- This agreement is going to provide
significant employment in this province, which will help continue
- There is another very important
component and achievement in this deal that was not included in the
Memorandum of Understanding that we signed this time last year.
- I am pleased to announce today that
for the first time in an offshore development agreement in this
province, we have negotiated a Gender Equity and Diversity Plan for
all phases of the Hebron project.
- It will have quantifiable objectives
and goals that support the creation of a diverse and capable
workforce. It will be part of the development plan for the project
and it represents a true milestone for our industry and our future
- It will include training and
recruitment programs and address access to business opportunities
for women, aboriginals and disadvantaged groups, including those
- Responsibility for implementation
will be shared by the project operators and major contractors.
- Through continual evaluation and
consultation, the elements of this plan will be in place for all
phases and in all places in the province where this work is
- This is a testament to the strong
commitment to diversity and corporate social responsibility of our
partners. I want to thank them for seeing the benefit of a program
of this nature in developing an industry that truly holds
opportunity and benefits for all the people of the province.
- The signing of the formal agreement
is an important step in the execution of this project. With this
agreement completed, we can now look forward to the mobilization of
a project team and Hebron project office in St. John�s.
- It is anticipated that a project
team consisting of technical and support positions will be ramped up
as soon as possible to begin detailed project planning.
- In the legislature this spring, we
brought forward legislation to establish a structure for the
province�s energy corporation that would allow it to enter into this
agreement today. We have been planning for this day since 2003, when
the premier first outlined his vision for the future of the
- The province�s 4.9 per cent equity
stake in this project is managed through our energy corporation. We
want our energy corporation to participate fully in energy projects
and to enter into agreements with private-sector partners, such as
the one we are signing today, on behalf of the people of the
- We have set up our energy
corporation for success and the signing of this agreement is an
important step in taking control of our natural resource
developments and our future.
- I am also taking this opportunity to
announce today that the Provincial Government is transferring
ownership of the Crown-owned Bull Arm fabrication facility to the
energy corporation. This transfer will ensure the facility is ready
and available for the Hebron project and construction of the GBS
starting in 2012.
- As a subsidiary of the energy
corporation, the Bull Arm Site will benefit from the engineering and
energy expertise available within the energy corporation. It is
critical that this key asset is available and ready to receive work
associated with the major large-scale construction projects we have
on the horizon in this province.
- We need to maximize our fabrication
capacity so that we can complete as much work associated with these
projects within the province as possible. This will benefit, and
fill, all our fabrication facilities.
- We believe that as a subsidiary of
the energy corporation, the Bull Arm Site will be well positioned to
maximize the benefits from these major construction projects in the
best interest of the people of the province.
- We have indeed entered a bold new
era in this province. I remember the enthusiasm and sense of pride
and support that emanated from industry and across the province when
the MOU was signed last year.
- I feel it again in this room today.
- I want to conclude by joining with
the premier in acknowledging the fantastic work that has been done
by a dedicated and talented group of professionals that we have
working for us in the public service and who brought this deal home.
I am very proud of the work by the staff in my department on this
important and historic deal for the people of the province. For
that, I give my heartfelt thanks and sincere appreciation.
- Thank you.
News Release -
Hebron Agreement Signals New Era
in Province�s History