Provincial and Federal Governments Give Green Light to Deep Panuke Project

EnCana's Deep Panuke project has been given the green light by the provincial and federal governments.

Today, Oct. 3, the governments of Nova Scotia and Canada formally announced approval of the development plan put forward by the Canada/Nova Scotia Offshore Petroleum Board. The governments also accepted the board's benefits-plan report.

Premier Rodney MacDonald, Energy Minister Bill Dooks and ACOA Minister Peter MacKay, on behalf of Gary Lunn, federal Minister of Natural Resources, made the announcement during CORE '07 in Halifax, an annual oil and gas conference.

"Today, we are celebrating a great day for Nova Scotia's energy sector, a great day for Nova Scotians, and a great day for Canada," Premier MacDonald said at the conference. "Today's announcement is proof there is new momentum in our offshore. A momentum that will bring economic benefits to our region and jobs for our people."

The estimated $700-million project, pending approval by EnCana's board of directors, is expected to begin production in 2010.

"Canada's government recognizes the importance of offshore oil and gas to the economy of Nova Scotia," said Mr. MacKay. "We are committed to actively supporting offshore exploration and development, together with the responsible development of our other great natural resources, for the benefit of all Canadians."

Energy Minister Bill Dooks said the project will help spur exploration interest in Nova Scotia's offshore.

"This project represents new activity in our offshore, more people working, more investments and, ultimately, more interest in our resource," said Energy Minister Bill Dooks. "It also shows industry that our regulatory reforms work and that we can approve projects quickly."

The project will mean a guarantee of 1.35 million person hours of work in Nova Scotia, with at least 850,000 person hours of that work to be done by Nova Scotians. The work will include jobs related to project engineering, design, procurement, fabrication and manufacturing. The work is guaranteed under the Offshore Strategic Energy Agreement signed by the province and EnCana.

Funds from the project, at least 0.5 per cent of gross revenue, will be set aside to advance education and training, and research and development in petroleum resource activities.

The offshore petroleum board's decision can be found at www.cnsopb.ns.ca later today.

Deep Panuke is about 250 kilometres southeast of Nova Scotia.