1. Canada-Newfoundland and Labrador Offshore Petroleum Board ICRARD 2010 W. Bobby

2. Canada-Newfoundland and Labrador Offshore Petroleum Board The legislation requires that expenditures shall be made for research and development to be carried out in the Province (Newfoundland and Labrador) and for education and training to be provided in the Province The levels of R&D were based on such expenditures by petroleum companies in Canada. Initially, the data reveal that R&D expenditure by oil and gas extracting companies in Canada averaged about 0.6 percent of revenue between 1995 and 2000 During the development phase of a project the companies are required to spend approximately 0.5 percent of total project capital cost During the production phase of a project the companies are required to spend approximately 0.3 to 0.4 percent of total project capital cost At present the companies are behind their commitment by about $ 41 million In order to be eligible, any R&D expenditure must occur in the Province of Newfoundland & Labrador.

3. Canada-Newfoundland and Labrador Offshore Petroleum Board The Research & Development Corporation (RDC) is a provincial (Newfoundland and Labrador) Crown corporation that was established to improve Newfoundland and Labrador’s research and development (R&D) performance. The Research & Development Corporation (RDC), launched a call for proposals in support of increased petroleum research and development in the province. The directed research call is open to proposals submitted between June 10, 2010 and May 31, 2011.

4. Canada-Newfoundland and Labrador Offshore Petroleum Board Specifically, R&D project proposals must: build company capacity as a R&D performer in NL; focus on industry needs, cost competitiveness, or technical barriers to development in NL, the Arctic and/or other harsh operating environments; identify a clear line of sight to market from R&D through to technology demonstration and deployment, and; align with one or more of the following commercial drivers: o R&D required to unlock NL’s hydrocarbon potential, o R&D required to enhance industry performance (from lower exploration, development or production costs to improved offshore safety), and/or o R&D required to commercialize innovative technologies, products and services.

5. Canada-Newfoundland and Labrador Offshore Petroleum Board The focus areas for R&D are specific to the identified needs of the petroleum industry, with a focus on offshore exploration, development and operations in NL, the Arctic and/or other harsh operating environments: subsurface visualization, reservoir characterization and reservoir management enhanced oil recovery, small field development and flow assurance intelligent systems, automation, autonomous systems, robotics and simulation navigation and communications power and propulsion systems asset integrity flexibles, flowlines and pipeline technology ice management, protection from iceberg scour and geohazard mitigation personnel safety in harsh marine environments: escape, evacuation and rescue oil spill detection, tracking and response remote sensing, environmental monitoring and mitigation subsea production (smart wells and intervention) and processing technologies (boosting, compression, separation) natural gas development, conversion and transport new technologies that enhance the performance of offshore facilities and support vessels other technologies required to operate in deeper, further and colder environments

6. Canada-Newfoundland and Labrador Offshore Petroleum Board Who is eligible to apply? Eligible applicants include oil and gas suppliers and operators, as well as marine transport and ocean technology companies addressing needs in the petroleum industry. Companies must have more than five employees and must either be located in the province of Newfoundland and Labrador or planning to locate in the province as a result of the project. Where applicable, project proponents are encouraged to work in collaboration with other local, national and international companies, end users and/or institutional researchers and research facilities.

7. Canada-Newfoundland and Labrador Offshore Petroleum Board What level of R&D funding is available? The RDC will consider investments of up to 75 per cent of total eligible R&D costs, to a maximum of $5 million per project. Multi- year projects of up to five years are eligible. Contact information is given in the documents attached to the minutes of the meeting