The Honourable Steve Crocker, Minister of Industry, Energy and Technology, today announced that the Provincial Government has entered a non-binding memorandum of understanding (MOU) with North Atlantic for the lease of the Bull Arm site.
Following a fair and transparent request for proposals process, which included the evaluation of proposals received, as well as completion of an economic and treasury impact analysis, the Provincial Government entered commercial negotiations with two proponents – DF Barnes Services Ltd. and North Atlantic. The MOU follows the conclusion of those negotiations.
North Atlantic intends to develop a Green Energy Centre of Excellence on-site, in collaboration with various private and public partners, to support the energy transition, including training opportunities for the province’s workforce.
Commercial items in the non-binding MOU protect the Provincial Government’s interests as the owner of this major industrial site, while providing North Atlantic the flexibility it needs to successfully attract investment and business to the site and earn a return on its investment.
The MOU states that North Atlantic agrees to negotiate in good faith with all parties seeking to utilize the Bull Arm site for activities that are compatible with the overall use of the site and will provide access to those parties on commercially reasonable terms.
North Atlantic has committed to a benefits agreement including a Gender Equity, Diversity and Inclusion Plan. Details will be set out in the definitive agreements and the benefits agreement will require the approval of the Minister of Industry, Energy and Technology.
Pursuant to the MOU, North Atlantic will incur all site operating costs as well as corrective maintenance costs associated with infrastructure used to deliver the operations services. The Provincial Government will share in profits generated by North Atlantic from the use of the site.
The Bull Arm Fabrication Site is Atlantic Canada’s largest fabrication site. It spans over 25 square kilometres with 10 kilometres of paved roadway, and 20,600 square metres of enclosed fabrication facilities and marine infrastructure. The site was originally developed for the Hibernia project in the 1990s but has played a key role in the development of a number of major projects since that time, including serving as the location for the construction and integration of major components for the Hebron project. The lease for the Bull Arm Site is currently held by Bull Arm Fabrication Inc., which operates the site on behalf of the Provincial Government.
Quotes
“Our goal throughout this process has been to maximize the economic and employment benefit to the people of Newfoundland and Labrador, while also providing a viable long-term business opportunity for potential proponents of the Bull Arm site. North Atlantic’s plan for this site and the MOU is consistent with this goal.”
Honourable Steve Crocker
Minister of Industry, Energy and Technology
“North Atlantic is proud to sign this MOU with the Government of Newfoundland and Labrador to lease the Bull Arm Fabrication site. We are committed to transforming the world-class facilities at Bull Arm into a year-round hub for both traditional and emerging industries, such as marine services, oil and gas, green energy, and defence. Through strategic investment, open access, and a focus on innovation, we are creating opportunities that will benefit the province for years to come.”
Ted Lomond
President and CEO, North Atlantic
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Learn more
Memorandum of Understanding
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