Released on April 29, 2025
The Government of Saskatchewan is extending the Oil Infrastructure Investment Program (OIIP) to expand market access for Saskatchewan oil and support the continued development of carbon dioxide (CO2) pipelines. CO2 pipelines play an important role in reducing emissions and growing enhanced oil recovery capacity.
Since OIIP was introduced in 2020, 74,000 barrels per day of new oil pipeline capacity has been added through the program. To date, over $100 million in private capital investment has been secured through OIIP, with a further $380 million associated with projects that have been conditionally approved.
"This program remains essential to our goals of generating investment in new energy projects and increasing our oil export capacity," Energy and Resources Minister Colleen Young said. "Extending OIIP shows we are committed to maintaining a competitive resource development environment in Saskatchewan. The growth of our oil and gas sector is a significant priority for our government because it leads to good jobs and additional economic opportunities for the people of our province."
The extension of OIIP will allow for the program to continue accepting new applications until March 31, 2029. The program will continue to offer a 20 per cent royalty tax credit, up to a maximum of $40 million, on qualifying oil or CO2 pipeline projects.
"The extension of the Oil Infrastructure Investment Program will help the province remain a competitive destination for investment, especially as companies navigate these economically challenging times," Husky Midstream Chief Executive Officer Shane Cooke said. "As a company, we benefitted from our participation in the program when expanding our Saskatchewan operations and believe its continuation will encourage future investment in transportation infrastructure that supports new production opportunities and industry growth."
For more information about OIIP, including links to application documents, visit: https://www.saskatchewan.ca/oil-infrastructure-investment-program.
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