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NEWS RELEASE (CNS729) -->> NATURAL RESOURCES--"GET READY" FOR SABLE GAS OPPORTUNITIES NATURAL RESOURCES--"GET READY" FOR SABLE GAS OPPORTUNITIES ----------------------------------------------------------------- Natural Resources Minister Eleanor Norrie said Nova Scotia businesses should prepare for opportunities associated with development of Sable Island natural gas. "If you are not ready, you should get ready," Mrs. Norrie said in an address Tuesday at the annual meeting of the Offshore Technologies Association of Nova Scotia (OTANS) in Halifax. The Sable Offshore Energy Project group, led by Mobil Oil Canada, will decide in mid-1997 whether to proceed with the $3 billion gas and pipeline development. If the project goes ahead, construction would start at the end of 1997 and gas production would begin in 1999. Mrs. Norrie said if the project goes ahead, Nova Scotia firms are expected to supply about $350 million worth of supplies, services and materials. "This represents opportunities for Nova Scotia firms in five general areas," the minister said. "Those areas are marine transportation services, construction of offshore platform components, business services, air transportation, and wholesale trade." The minister also said she is determined that Nova Scotians will reap the benefits from development of Sable gas. "My job, as minister responsible for our natural resources, is to put Nova Scotia's interests first...for both now and for the future." During the two year construction phase, nearly four thousand jobs will be created onshore and offshore. Examples of some of the numbers and kinds of jobs include: about 300 workers to drill the offshore gas wells; another 150 to provide support services; 500 to assemble the offshore gas production platform; 220 to build the subsea pipelines connecting the six gas fields; and about 500 people to build an onshore gas processing plant and other gas handling facilities in the Canso strait. "That's a lot of work, a lot of jobs, and a lot of contracts," said Mrs. Norrie. "It is also a lot of opportunities for Nova Scotia suppliers, contractors and tradespeople." After the construction phase, nearly 250 people would have permanent jobs in the 25 year production phase of the project. This would include workers for the offshore platforms, plus support staff and plant workers for the onshore gas processing facilities. Throughout the 25 year production period, about $28 million worth of materials would be secured from Nova Scotia suppliers each year. "That's about $2.3 million per month for 25 years or $700 million over the life of the project," Mrs. Norrie said. "In addition, the payroll to project workers would be about $19 million each year. That's $475 million in wages and salaries over the full production period." Mrs. Norrie said a key role of the recently established Nova Scotia Offshore Energy Office, is to ensure that Nova Scotia companies and workers receive maximum possible benefits and opportunities from Sable gas development. For the Sable projects, the new office is the first point of contact with the provincial government. -30- Contact: Blain Henshaw 902-424-5252 trp Oct. 30, 1996 - 12:40 p.m.