St. John’s, NL (October 1, 2015) – On behalf of Noia’s 650+ members, Robert Cadigan, President and CEO, today expressed his pleasure about the offshore resource assessment announced yesterday by Premier Davis.
“This incredible news is nothing short of a game-changer for the province’s oil & gas industry,” said Mr. Cadigan. “The petroleum resource assessment of this large, unexplored frontier basin confirms that our waters have unlimited potential. It is critical that all stakeholders work together to ensure this potential is maximized for the benefit of all Newfoundlanders and Labradorians. Despite the downturn caused by low oil prices that has been felt by our members and all Newfoundlanders and Labradorians, this announcement gives us reason to believe that the future of the oil & gas industry for our province is very bright.”
The new resource assessment, conducted by independent global oil & gas consultant, Beicip Franlab, reveals exciting oil & gas potential for the upcoming 2015 license round area in offshore Newfoundland and Labrador. The area, covering less than two percent of the offshore, reveals that the “in place” oil & gas resource potential is 12 billion barrels of oil and 113 trillion cubic feet of gas. This places Newfoundland and Labrador among other hotbeds of exploration, such as the Barents Sea and West Africa.
“This announcement and the scheduled land sale process, which Noia lobbied vigorously for, is not only important for future growth of the industry, but will allow our supply and service companies to undertake long-term planning,” added Mr. Cadigan. “Now, for the first time in the history of Newfoundland and Labrador’s offshore, we know in advance of a land sale the oil & gas resources that are contained in our waters. This will attract more entrants and result in a more informed and competitive bidding process. Noia will continue to work with Nalcor and the Province to promote development of our offshore resources and to facilitate our membership’s participation in this thriving, long-term industry.”