Official Opposition Demanding Update on

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Official Opposition Demanding Update on Status of Bull Arm Fabrication Site
“What were the results of the 2017 EOI process? What is the short and long-term plan for the facility? What is the current value and terms of the contract with the operator?”
Wednesday, June 3, 2020

Office of the Official Opposition
For Immediate Release

 

St. John’s, NL (June 3, 2020) – PC Official Opposition Critic for Natural Resources and MHA for Conception Bay East – Bell Island David Brazil today demanded to know the status of the Bull Arm Fabrication site. Nalcor had launched a request for expressions of interest (EOI) back in March 2017. The site has lacked a major anchor tenant since the ExxonMobil Hebron Project ended in March 2018.

“The last year ExxonMobil leased the Bull Arm site, Nalcor received $26 million dollars, which equates to $2.1 million per month. I have information that Government has entered into a new contract for just $20,000 per month. This appears to be a sweetheart deal if there ever was one.”

Brazil noted there are rumors in the industry that two drills rigs will be “cold stacked” at the site with little economic impact and that various warehouse buildings and lay down areas will be accessed by the rig companies, free of charge.

“Government has invested heavily over the years in the Cow Head and Bay Bulls facilities to diversify and grow the offshore service and supply sectors. Allowing major companies to access a Government owned site for virtually free is a major step backward.”

“What were the results of the 2017 EOI process? What is the short and long-term plan for the facility? What is the current value and terms of the contract with the operator?”

 

Contacts:

Bradley Russell

Director of Policy and Research

(p) 1.709.729.3668

BradleyRussell@gov.nl.ca

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