CONTRACTOR SELECTION PROCESS – SERVICE RIGS AND DOWNHOLE TOOLS PILOT UPDATE
A pilot project to pre-qualify Subcontractors in two key supply categories: Service Rigs and Downhole Tools for fiscal April 2021/March 2022 is currently underway (see Contractor Selection page). Interest has been strong, and we thank all of the companies that have registered prior to the Feb. 5/21 deadline. Registration is now closed, and applications will no longer be accepted. OWA is in the next step of the pre-qualification process which is to issue a Request for Quotation (RFQ) to shortlisted applicants. The pre-qualification is expected to be completed by mid-March.
The pilot is being used to inform and potentially expand the pre-qualification process into other categories. During this evaluation period our Prime Contractors will continue to conduct a competitive process to select their Subcontractors for packages of work they receive from the OWA.
As part of its investment in the energy industry, the Government of Canada’s plans include a $200 million repayable loan to the OWA. The Government of Alberta has also announced a $100 million repayable loan to the OWA, in addition to a loan announced by the province in 2017 and provided over three years. Service companies interested in working for the OWA can find information in the Work With Us tab.
In addition to loans provided to the OWA, the Government of Alberta also announced the Site Rehabilitation Program, primarily funded by the federal government’s COVID-19 Economic Response Plan, which will provide up to $1 billion in funding to Alberta’s oilfield service contractors to perform well, pipeline, and oil and gas site reclamation work. The Site Rehabilitation Program is a separate program not administered by the OWA. The OWA is ineligible to apply for grant funding. Please go to alberta.ca/siterehab for further information.
The Orphan Well Association is an industry-funded collaboration among the Alberta Government, provincial regulators and oil and gas producers to work toward a common goal: protecting public safety and managing the environmental risks of oil and gas properties that do not have a legally or financially responsible party that can be held accountable. These properties are known as “orphans.” The mandate of the OWA is to safely and efficiently decommission orphan oil and gas wells, pipelines, production facilities and restore the land as close to its original state as possible.