Reposted from WorldOil.com
ST. JOHN’S, NL — As a provincial general election is scheduled for May 16, 2019, Noia has issued a letter to the leaders of the four political parties seeking their position on the Newfoundland and Labrador offshore oil & gas industry.
In the context of Noia’s Imagine the Potential campaign and the facts released through its industry economic impact report, Noia believes it is imperative for the political parties to provide information on how they will ensure the industry is able to reach its potential and provide significant benefits to all Newfoundlanders and Labradorians.
Noia has requested the parties provide their policy approach to three topics of critical importance to the supply and service sector:
- The Atlantic Accord – how they will guarantee the legislated rights in the Atlantic Accord of “full and fair opportunity” and “principal beneficiary” will be upheld.
- Life-of-field benefits – how life-of-field benefits will be achieved in benefits agreements for future offshore projects.
- Internationally competitive regulatory regime – how they will ensure the Newfoundland and Labrador offshore oil & gas industry is globally competitive.
While the questions are deliberately broad to allow parties the opportunity to provide their responses, Noia encourages detailed information within the responses to help Noia members make informed decisions.
Dear Party Leader:
The Newfoundland and Labrador Oil and Gas Industries Association (Noia) was founded in 1977 to represent the supply and service sector of the offshore oil and gas industry. Today Noia represents approximately 600-member organizations worldwide which are involved in, or benefit from, the oil and gas industry of Newfoundland and Labrador. Noia members are a diverse representation of businesses that range from offshore supply boats and helicopters to health and safety equipment and training, engineering solutions and fabricators to local bakeries and taxi companies.
Noia’s economic impact study clearly demonstrates the profound value of our offshore oil & gas industry to the province, and indeed, the country. ImagineThePotential.ca highlights that our industry is by far the largest contributor to the Newfoundland and Labrador economy and forecasts future potential benefits of over $100 billion in royalties and taxes to the provincial government by 2045. Game-changing revenue such as this, along with the numerous other economic benefits highlighted in the study, exemplify why we must ensure our industry is able to reach its potential.
During the provincial general election, Noia is asking all parties how they will support the offshore oil and gas industry should they form the next government. Specifically, Noia is asking how a government you lead will ensure the supply and service sector of Newfoundland and Labrador benefits from the tremendous resources offshore and how you will enable our industry to reach its full potential.
Please provide to Noia your answers to our questions below in writing. All responses will be shared with Noia members and posted to our website.
The Atlantic Accord
The Atlantic Accord is considered a foundational document for the Newfoundland and Labrador offshore oil and gas industry and has provided significant benefits to our supply and service sector. The Accord recognizes the province’s right to jointly manage and receive benefits from offshore resources as if they are located “on land, within the province” and also ensures that Newfoundland and Labrador be the “principal beneficiary” of the offshore. Further, Section 51 requires that Newfoundland and Labrador companies have “full and fair opportunity” to participate in the offshore supply and service industry.
As our industry continues to grow and become more globally attractive, how will your government ensure the legislative rights such as “full and fair opportunity” and “principal beneficiary” within the Atlantic Accord are upheld?
What specific actions will your government undertake to support the supply and service sector and ensure their “full and fair opportunity” to participate in the sector?
Given the tremendous potential offshore Newfoundland and Labrador there will be numerous oil and gas projects occurring in the coming years. These projects will require production facilities such as concrete gravity structures (CGS) and floating, production, storage and offloading vessels (FPSO). Construction of such installations provides work for thousands of Newfoundlanders and Labradorians and significant benefits to the entire province. Noia insists that as much of this work as possible must occur within the province. Noia also strongly believes life-of-field benefits – not just during the development stage – should occur for all offshore projects and should be given a high priority when negotiating benefits agreements.
How will your party ensure benefits agreements include life-of-field requirements and how will such stipulations be enforced during all phases of a project to ensure significant value is received for all of Newfoundland and Labrador?
Internationally competitive regulatory regime
The offshore oil and gas industry is international which means the Newfoundland and Labrador industry must be able to compete for the interest of global companies and investment. To accomplish this, our industry must be globally competitive through legislation and regulation which allows for exploration and, ultimately, production to occur in a timely manner which is competitive on the international scale.
To reach its tremendous potential, how will your party ensure globally competitive legislative and regulatory processes for the Newfoundland and Labrador offshore oil and gas industry?
I would like to thank you for your time and consideration in answering these important questions for Noia members. We truly feel that offshore oil and gas is the most important industry for the future of Newfoundland and Labrador and will provide tremendous benefits to all regions of the province and support many other industries to reach their potential.
Noia would welcome the opportunity to meet to discuss these issues. Please do not hesitate to contact me at 758-6610 or firstname.lastname@example.org.
Charlene Johnson, CEO