Projects will protect and create jobs: government says
ST. JOHN’S, N.L. — The offshore oil industry in the province is hot once again with the announcement Tuesday of financial support for 26 supply and service projects through the federally funded Newfoundland and Labrador Offshore Oil and Gas Industry Recovery Assistance Fund.
The total money announced Tuesday was about $35.5 million — which included about $2.5 million added in by the province.
The projects are expected to create or maintain up to 230 full-time equivalent jobs.
“We know that oil and gas will be here for the foreseeable future, but we also know we have a product that the world needs right now — a lower carbon footprint, non-landlocked, straight to market, ethical and responsible petroleum product,” Premier Andrew Furey said at the announcement held at the Fisheries and Marine Institute of Memorial University in St. John’s.
“Many of the projects we announced today harness technology, digitalization and carbon-efficient solutions to ensure safe operations and competitiveness on a global stage. These companies know, in fact the industry demands, that digitalization will be the key in reducing our offshore emissions and reducing our environmental footprint.
“Our government will continue to work to support the women and men who work in the oil and gas industry as we collaborate with industry to support new innovative ideas to further reduce greenhouse gas emissions.”
Of the 26 approved projects, five are non-commercial and 21 are commercial.
Centre of excellence funded
The Fisheries and Marine Institute was one of the recipients of cash. It received more than $1.3 million for a project to support the establishment of a Subsea Centre of Excellence.
When completed the centre will allow operators to improve environmental safety and reduce the likelihood of damage or spills during routine offshore maintenance work in a simulated North Atlantic operating environment.
Robert Shea, vice-president of Memorial University (Marine Institute), said the subsea centre at The Launch in Holyrood will allow university and industry collaborators to leverage their oceans expertise and position the province as a prominent research, testing and training location for ocean technology.
“Establishing the Subsea Centre of Excellence will position Memorial and the Fisheries and Marine Institute, and the local ocean tech community, to respond to the research and development requirements of industry and to capitalize on opportunities in the global ocean economy,” Shea said.
Good news for a change
There appeared to be a return of the pre-pandemic oil and gas industry buzz in the auditorium on Tuesday.
Industry, Energy and Technology Minister Andrew Parsons said it was good to be announcing good news after more than a year of downturn and uncertainty.
“These projects focus on industry-led activities that will sustain the province’s offshore oil and gas industry in the short term and drive the recovery of the oil and gas sector over the long term, while generating environmental benefits or co-benefits as we plan for transition,” he said.
Many of the funding recipients are members of Noia (Newfoundland and Labrador Oil and Gas Industries Association).
Noia CEO Charlene Johnson said she is looking forward to seeing the projects announced Tuesday move forward as the province enters the next phase of its offshore oil and gas industry.
“While we are engaged in a global energy evolution, there remains space for oil and gas from Newfoundland and Labrador. Global demand is rising as we return to our pre-pandemic activities,” she noted.
“The projects supported today will help our sector improve. They will help our sector grow and they will help our sector reach its potential.
“Creating sub-sea centres of excellence, further developing ROV technology, studying and mitigating ice, and expanding the use of remote operation centres are all ways we can improve our sector and decrease our carbon footprint.”
On Sept. 25, 2020, the province signed an agreement with the federal government for $320 million which became the Newfoundland and Labrador Offshore Oil and Gas Industry Recovery Assistance Fund. The goals of the fund were to maximize employment for Newfoundland and Labrador residents and support the recovery of the province’s offshore oil and gas industry. About $288 million of the fund was earlier allotted to operators of existing offshore installations.
Source: Saltwire | This text was excerpted from the media outlet cited on November 24, 2021 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.