Export Development Canada (EDC) has made available C$750mn of financial capacity to Canadian companies in the oil and gas sector, particularly small and medium enterprises (SMEs).
The funding’s goal is to support those companies struggling due to the fall in commodity prices. According to an EDC statement, particular emphasis will be placed on helping companies making investments in four key areas: increasing a company’s productivity, infrastructure that will increase market access for resources, investing in new technology that can help diversify their products to different industries, and building the sector’s environmental sustainability.
“The prolonged downturn in the price of oil has had a profound impact on Canada’s smaller supply and service companies,” says Mairead Lavery, EDC senior vice-president, business development. “Our goal is to make sure that well-run companies have the financial tools they need to get through this downturn. We want them to be ready to take advantage of the turnaround when it happens.”
“We know there are many smaller companies across Canada with solid fundamentals that are financially stressed, and those are the companies that we can really help to make it through this period of lower oil prices,” adds Mark Senn, EDC regional vice-president, Western Canada. “EDC is open for business in Canada’s oil and gas sector, and we want to help as many export-minded companies as we can.”