Saskatchewan beckons to oil and gas explorers with open arms, said its Minister of Enterprise, the Honorable Ken Cheveldayoff, in an exclusive interview at NAPE 2010.

"Take a look at this jurisdiction of a million people that is blessed with oil, gas, uranium and potash and is a real up-and-comer in the industry," he said. "We think we have very lucrative properties and investment potential for those companies that take the initiative to learn more about us."

The province, which leads Canada in economic growth, is soliciting investment in its oil and gas sector. In the area between Regina and Moosejaw, Sas­katchewan already has a solution potash mine and a fertilizer plant. The site is close to pipelines, close to the TransCanada highway, and well connected to truck and rail lines. The province would like to grow these seeds into an integrated energy complex.

"We can see a complex being developed that would include a heavy oil upgrader, a cogeneration facility, a refinery for synthetic oil fuels, and a petrochemical plant," said Chev­el­dayoff.

Upstream opportunities are also available. Saskatchewan is home to 43 billion barrels of in-place oil resource, and most recently has garnered attention due to industry interest in the Bakken. Land is still open in this burgeoning play, said Cheveldayoff. The province holds regular Crown land sales, and these have been very attractive and competitive.

Furthermore, the province is fiscally stable. "We’re committed to a balanced budget in our province," he said. "During the last two years, it’s been a phenomenal story what we’ve been able to do for the people of Saskatchewan." The government has reduced the debt of the province by 40%, and lowered taxes. "At the same time, we’ve had a record investment in infrastructure in highways, hospitals, health care and in utilities."

Saskatchewan also delivers a favorable bottom line to producers. "Most companies are asking for a stable royalty regime, something that is predictable so they can make long-term investments. Our premier has made it very clear that we are not going to touch royalties at all."

That sets the stage for a very attractive place to do business. "We’ve watched what has been happening in our sister province of Alberta and we’ve learned some lessons," he said.

Cheveldayoff also runs Enterprise Saskatchewan, the economic development arm of the government. The unit, governed by a private-sector board of directors, works to encourage economic growth and to identify and remove any barriers to that growth. A sector team specifically focuses on oil and gas. "Companies have direct input. They can articulate what a hurdle is and before too long it can be removed."

The province knows time is money, and turnaround time for information and permits is quick. "We’ve heard from industry that they really appreciate our attention to detail and expediency."

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