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SASKATCHEWAN OPPORTUNITIES INTEREST CHINESE INVESTORS

Released on February 9, 2010

Significant interest was shown for oil industry opportunities during recent seminars hosted in Beijing by Saskatchewan Energy and Resources Minister Bill Boyd. The seminars were a highlight of the 14 day mission to China and Japan by Boyd and representatives of the Ministry of Energy and Resources, SaskPower and Enterprise Saskatchewan.

Hosted in co-operation with Consular officials from the Canadian Embassy, interest in the seminar was so high that a second session was added to meet demand. Over the two days in which the seminar was offered, in excess of 150 people representing 75 companies and organizations attended. Interest was bolstered by recent announcements from the Government of China encouraging Chinese companies, both sovereign and private, to seek out energy opportunities around the world.

"There was a surprising amount of knowledge about Saskatchewan demonstrated by those in attendance," Boyd said. "Obviously several companies have already begun to research Saskatchewan opportunities in conventional crude."

Significant follow up from Chinese companies is expected and representatives from Energy and Resources as well and Enterprise Saskatchewan will be supporting those companies as they consider Saskatchewan for oil investments.

"Additional interest and investment will serve to advance the oil industry in Saskatchewan," Boyd said. "We know the oil is here and we believe that the more companies that are active in our oil fields, the more technology will be brought to bear, thereby expanding production and increasing recoverable oil reserves."

Saskatchewan's leadership in carbon capture and storage (CCS) was also of interest to many companies in China and Japan. In China, a Memorandum of Understanding was signed between SaskPower and the Huaneng Group Research and Development Centre to seek out opportunities to co-operate on CCS technology.

"The Huaneng Group is one of China's largest power generation companies and is investing significantly in CCS technology," Boyd said. "Coal represents the majority of the company's power generation so it is keen to advance CCS in China and around the world. The Huaneng Group's new carbon capture facility is one of the few demonstration projects currently operating in the world."

Another Memorandum of Understanding was signed with the Sojitz Corporation in Japan to jointly study CCS technology. The agreement will allow SaskPower to learn from Sojitz's cutting edge research as a member of the Global Carbon Capture and Storage Institute. Sojitz, meanwhile, will be able to fully understand and explore CCS opportunities in North America.

Additional meetings were held with other companies interested in working with SaskPower. These discussions focused on CCS and demonstrated a high level of interest in the leadership Saskatchewan has shown in CCS and offered great promise for the future.

"Major interest was shown in the proposal for the Saskatchewan Demonstration Facility for Carbon Capture," Boyd said. "If we are successful in obtaining support from the federal government for this project, there will be companies competing aggressively to participate."

The business plan for the demonstration facility, combined with the opportunity it represents to advance capture technology, has generated major interest among companies competing to develop capture technologies. With large volumes of coal-fired power generation around the world, those companies first to market with price competitive capture technology will have a huge advantage.

In addition, Saskatchewan officials were involved in a series of very productive meetings with Canpotex and representatives of potash buying companies, including Sinofert.

"We are especially pleased to see yesterday's announced potash sale and wish to compliment all those involved in concluding that sale," Boyd said. "It is great to see Saskatchewan potash moving again, especially to the Chinese market."

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For more information, contact:

Roy Schneider
Energy and Resources
Regina
Phone: 306-787-9694
Email: roy.schneider@gov.sk.ca

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