NOIA responds to DES settlement10/12/2012
Today, the Government of Newfoundland and Labrador announced it has reached an agreement with the Hebron Project proponent, ExxonMobil, regarding the Drilling Equipment Set (DES) Module. The government announced it will collect $150 million to resolve a dispute concerning in-province fabrication of the DES for the Hebron Project.
Under the 2008 Hebron Benefits Agreement, the DES was designated to be built in the province. This summer, the project proponent triggered the dispute resolution process contained in the Hebron Benefits Agreement, by stating that there isn’t sufficient yard capacity to construct the module in the province.
“Noia has always maintained that the capacity exists and the Hebron proponent must live up to its commitment to build all three modules in Newfoundland and Labrador: living quarters, drilling support module and DES,” said Robert Cadigan, President and CEO of Noia.
The provisions in the Hebron Benefits Agreement were instrumental in reaching the settlement announced today.
“While our preference is to see the DES done here, Noia is pleased with the resolve of Premier Dunderdale and Minister Kennedy on this issue. Benefits agreements are an important part of development plans and the government has demonstrated this in resolving the DES dispute.”
About NOIA (Newfoundland and Labrador Oil and Gas Industries Association)
Established in 1977, NOIA is Canada's largest offshore petroleum association. Noia’s core members provide products and services for the petroleum industry and associate members represent operators, trade associations, educational institutions and government bodies.
For more information:
Deborah Inkpen, Vice-President, Communications and Policy, Noia Tel: 709-758-6617 / Cell: 709-691-2208 / firstname.lastname@example.org
Marilyn Buckingham, Communications Coordinator, Noia Tel: 709-758-6619 / Cell: 709-693-9831 / email@example.com