FIVE-YEAR MORATORIUM ON DUTIES AIMS TO INCREASE OFFSHORE DRILLING IN ATLANTIC CANADA

News Release

HOUSTON — There is now a new incentive for offshore drilling activity in Atlantic Canada. Today, the Honourable R. John Efford, Minister of Natural Resources Canada (NRCan), announced a trial five-year moratorium on duties imposed on the temporary importation of mobile offshore drilling units (MODUs). He made the announcement while attending the Offshore Technology Conference in Houston, Texas. “By lowering exploration costs, this moratorium will increase the competitiveness of Canadian offshore drilling in the global marketplace,” said Minister Efford. “This decision will contribute to the Canadian economy, particularly in the region of Atlantic Canada.” MODUs are used for drilling operations beneath the seabed for the exploration of resources such as oil and gas. The Canadian Association of Petroleum Producers and the Canadian Association of Oilwell Drilling Contractors consider the duties on these units to be an impediment to increased offshore drilling activity. The decision to provide a five-year moratorium on these duties will contribute to lowering offshore oil and gas exploration costs in Canada. Before making its decision, the Government of Canada held extensive consultations with oil and gas explorers, the Shipbuilding and Industrial Marine Advisory Committee and the Atlantic provinces regarding a moratorium on duties imposed on MODUs. The issue was also discussed at the Atlantic Energy Roundtable in St. John's, Newfoundland and Labrador, in the fall of 2003. The Roundtable is a partnership involving federal and provincial governments and industry and labour stakeholders. It is committed to the sustainable development of Atlantic Canada's offshore energy resources while maximizing the contribution of this industry to the economic and social well-being of the region. This initiative builds on Natural Resources Canada's commitment to a strong and sustainable future for Canadian offshore drilling — supporting the Government of Canada's agenda of strong social foundations, a strong economy for the 21st century and ensuring Canada's role of pride and influence in the world. For more information, media may contact: Alexandra Muir Ghyslain Charron Director of Communications Media Relations Office of the Minister, Natural Resources Canada Natural Resources Canada Ottawa Ottawa (613) 992-4447 (613) 947-8246

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2016-12-15

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FIVE-YEAR MORATORIUM ON DUTIES AIMS TO INCREASE OFFSHORE DRILLING IN ATLANTIC CANADA

News Release

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