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Benefits of the Program

The primary goal of the program is to support Saskatchewan-based oil and gas service sector workers and companies. It is expected that 2,100 jobs will be directly supported by this initiative and that the equivalent of up to 8,000 wells and facilities will be abandoned. Abandonment and reclamation work approved under Phase 1 and Phase 2 will be funded at 100% of the eligible costs, paid directly to qualifying service companies.

As program administrator, the SRC will bundle licensee nominated sites into area-based work packages for execution by qualifying Saskatchewan-based oil and gas service companies. This will drive program efficiencies, generate more abandonment and reclamation work under the program, and keep more Saskatchewan people employed.

This model will also allow for the implementation of a supplier development function over the life of the program to maximize the development and use of qualifying Saskatchewan-based service companies, including eligible First Nations and Métis service companies.

Under this model, all contracting for services will remain between the eligible licensee and the qualifying service company. Under no circumstances will a third-party take control of a licensee's well or facility site. All affected licensees will be required to sign-off on work packages created by the SRC before they are put to tender.

To this end, up to $400 Million will be made available through three funding phases.

  • Phase 1 – $100 million;
  • Phase 2 – $200 million; and
  • Phase 3 – $55 million.

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