Petro-Canada International Assistance Corporation
Authors: Rayer F.G. 
Published: March 2010

Assistance programs utilizing Canadian firms, equipment, and servicesin petroleum exploration related projects-help eligibledeveloping countries to become energy self-reliant.

Introduction

Petro-Canada International Assistance Corporation (PCIAC), althoughincorporated as a wholly owned subsidiary of Petro-Canada, is a separatelyfunded Canadian Government development assistance organization. PCIAC's helpseligible developing countries to discover their own oil and gas resources withthe aim of reducing dependence on high-cost imported oil. PCIAC's funds(approved separately by Parliament) are part of Canada's funding for OfficialDevelopment Assistance (ODA). Initially, when operations commenced in 1982, PCIAC was targeted to receive $250 million over five years. Projected PCIACexpenditures for the extension of 1982 projects and for approved 1983 programswill double from 1982's $21 million outlay to $42 million, more closelyapproximating the original target.

Petro-Canada's role is best described as that of a contractor or executingagent, and in this capacity it conducts projects for PCIAC on a cost-recoverybasis. This role is unique and innovative; it provides PCIAC with access to amajor integrated oil company that has not only in-house expertise, but also anestablished procurement capacity to involve Canadian suppliers, servicecompanies, contractors and consultants.

PCIAC, does not provide funds directly to eligible oil importingdeveloping countries, but rather through an operating services contract with PetroCanada, it conducts exploration-related projects in recipient countries.Thus PCIAC has been operationally highly successful, more flexible, and morecost effective in providing petroleum-related assistance than other foreign aidinstitutions. This is being accomplished without staff additions to Petro-Canada. A small group of professionals manage and coordinate PCIACprojects. When additional support is required, the necessary services aresubcontracted through Petro-Canada from Canadian consultants, contractors andservice companies.

Requirements for Project Approval

Prerequisites for approval of PCIAC projects include the capacity to utilize Canadian expertise, equipment and services, as well as the potential to open uplonger-term industrial and trade opportunities for Canadian oil and gas firms.To date, a number of contracts have been awarded:Petrel Consultants Ltd. of Calgary to provide integrated explorationevaluations onshore and offshore Jamaica.Liftair International Ltd. of Calgary, Scott Resources. Dawson-Long and Associates, and Robertson Research Ltd. as sub-contractors for variouscomponents of the recent drilling program offshore Tanzania.Ager, Beretta and Ellis Ltd. of Vancouver, to conduct an onshore gravitysurvey in Tanzania, based on a call for bids in which twelve companiessubmitted proposals.Sefel Geophysical Ltd., during the winter offseason to conduct marineseismic programs in the Caribbean and in West Africa:Ecotec Ltd. to provide economic analysis services and training.Nortech Consultants and McElhanney Ltd. to provide positioning andsurveying support for offshore programs.Paterson, Grant and Watson Ltd. and Geo-Analysis Ltd. to conduct separateevaluations for PCIAC programs in Africa.Contracts are currently being finalized for several additional componentsof recently approved PCIAC projects in the Philippines and Thailand.