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Commodity Pricing

Clock Ticking on Critical Window for Oil Exploration Incentives: Noia CEO

The CEO of Noia says time is of the essence if the federal government is going to come up with an incentive plan to help encourage continued development in the offshore.

Charlene Johnson says the provincial government expects to lose $11-billion in revenue and 90,000 person-years of employment over the next ten years due to project cancellations and deferrals.

The next round of bids in the offshore takes place in November and there is only a week to ten days left for companies to make their final decisions.Johnson says time is running out and if an incentive program is not announced soon, the impact on the industry will be devastating.

Johnson noticed someone in the industry indicated that this will be the first time in 20 years that NL will not have a rig exploring in the offshore.

Drill rigs are leaving the region for other areas, and Johnson says they’re unlikely to come back soon once they’re gone.

Source: VOCM | This text was excerpted from the media outlet cited on September 2, 2020 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.