Offshore Contracts an Important Step

Energy Minister Gordon Balser said today's award of the South Venture topsides fabrication project to Irving Shipbuilding Inc. in Halifax marks an important step for Nova Scotia's growing oil and gas sector.

The owners of the Sable Project announced the contract award for the fabrication of the South Venture topsides to the company earlier today, Dec. 11. Irving Shipbuilding Inc. won the contract through a competitive bidding process.

"Nova Scotians are proving that we have the skilled workforce, engineering capability and infrastructure to be competitive on a global scale," said Mr. Balser. "In just three days we've seen two local companies demonstrate that our businesses have what it takes to be full participants in developing a competitive, world- class oil and gas industry in Atlantic Canada."

Earlier this week, Offshore Logistics Inc. -- a subsidiary of Secunda Marine of Dartmouth -- renewed its contract to manage and operate an offshore supply base and dock for ExxonMobil Canada for the next three years.

"This is great news for Nova Scotia and illustrates the confidence that the offshore companies have in the quality of our local fabrication and supply sector. But we can't stop here," said the minister. "We need to continue our efforts in training, technology adoption and exporting so that we are able to maintain the momentum and build our capacity to meet the needs of this growing industry."

South Venture was included in Sable's development plan application, approved in 1997. A decision on proceeding with the project is expected early in 2003. The contract for the topsides includes the fabrication of the entire production platform for the South Venture well.

The offshore assets of the Sable Project are owned by ExxonMobil Canada, Shell Canada, Imperial Oil Resources, Emera and Mosbacher Operating Ltd.