Canada offers financial relief for oil and gas sector

Published by Nicholas Woodroof, Editor
Oilfield Technology, Monday, 20 April 2020 11:00

As reported by Reuters, Canada will invest CAN$2.5 billion (US$1.8 billion) in measures to help the oil and gas industry during the coronavirus outbreak, which has killed 1250 people in the country, Prime Minister Justin Trudeau said on Friday (17 April).

The sector, which accounts for 10.6% of Canada’s gross domestic product, has urged the government to free up credit and cash to tackle the effects of the pandemic and rock-bottom oil prices.

Trudeau said energy sector workers have faced “layers of calamity” and the government would invest CAN$1.7 billion to clean up orphan and abandoned wells in three provinces.

“Our goal is to create immediate jobs in these provinces while helping companies avoid bankruptcy and supporting our environmental targets,” he told reporters, saying the measures would maintain 10 000 jobs.

The government is also setting up a CAN$750 million fund to provide repayable loans to companies so they can cut emissions of gases such as methane.

The government said later that the Business Development Bank of Canada will offer energy companies commercial loans, worth CAN$15 million to CAN$60 million each, to supply cash flow for 12 months.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/20042020/canada-offers-financial-relief-for-oil-and-gas-sector/