News Releases
Federal Funding Seizes Oil and Gas Market Opportunities
Wednesday, April 3, 2002
The Honourable Robert D. Nault, Minister of Indian Affairs and Northern Development (DIAND) announced federal funding of approximately $1.1 million today towards a business venture in the Inuvialuit Settlement Region. Minister Nault and Nellie Cournoyea, Chair of Inuvialuit Regional Corporation, discussed the benefits that will be derived from the important economic development project during a news conference in Yellowknife.
At a total cost of $22.6 million, a new oil rig, Rig 63 and a support camp, will be built and operated thanks, in part, to DIAND's contribution from the Major Business Projects Program (MBPP).
Akita Equtak Drilling Ltd. (AEDL), a company jointly owned by the Inuvialuit Development Corporation (IDC), has contracted to build, manage and operate the new drilling rig. A four-year drilling contract for Rig 63 has been negotiated with one of Canada's large exploration companies.
"Since the return of the oil and gas industry to the Beaufort/Delta, Inuvialuit Development Corporation has moved quickly to position itself to take full advantage of the associated business opportunities," said Nellie Cournoyea, Chair and C.E.O. of Inuvialuit Regional Corporation. "With DIAND support we have been able to take another significant step in establishing ourselves as drilling contractor of choice with the companies exploring for natural gas in the region."
The Inuvialuit Development Corporation (IDC) is a diversified management company and a global leader among aboriginal development corporations. IDC is owned 100% by the Inuvialuit Regional Corporation (IRC), which in turn is directly controlled by the 5,000 beneficiaries of the Inuvialuit Land Claim.
"IDC is to be congratulated in its decision to offer a broad range of oilfield services, its continued effort to build and protect a diversified asset base, and its determination to create employment for the Inuvialuit," said Minister Nault. "The Government of Canada is proud to contribute to this economic development venture and our investment can be seen as tangible evidence of our support for IDC's oil and gas strategy."
"Inuvialuit-owned drill rigs provide a centre around which apprenticeship activities can be organized," said the Honourable Ethel Blondin-Andrew, Member of Parliament for the Western Arctic. "I am therefore pleased the Government of Canada invested in this project, as there is great potential for community work experience and skill development that will lead the Inuvialuit to real opportunities for advancement."
The addition of Rig 63 completes IDC's move into the drilling segment. As Akita-Equtak becomes the dominant competitor in the Mackenzie Delta, it is well positioned to obtain the majority of the available drilling work in the region.