Jorge Barrera
Northern News Services

Yellowknife (Apr 08/02) - Despite a million dollars for an oil rig in the Beaufort Delta, the federal government is offering no guarantees it will provide money to an aboriginal corporation looking to build a Mackenzie Valley pipeline.

Last Wednesday, Indian and Northern Affairs Minister Bob Nault announced $1.1 million in funding for the Inuvialuit Regional Corporation toward its purchase of rig 63, a six-month-old drilling rig working near Tuktoyaktuk.

The regional corporation is one of the driving forces behind the Aboriginal Pipeline Corporation in its one-third-ownership joint venture with four transnational oil companies.

But the federal government has not committed to help the corporation meet its $1 billion share of costs in the project.

What good is a drilling rig if oil and gas can't be taken anywhere?

That's the question Nault was asked during a press conference Wednesday, but Inuvialuit Regional Corporation chair Nellie Cournoyea intercepted it. "He hasn't received our proposal, it's not a fair question for the minister to answer at this time," she said.

Cournoyea said the corporation will submit its business plan for the $1 billion this month.

"I feel strongly once (the proposal) is on the table he will support us," said Cournoyea.

Nault later said it wasn't his department's policy to support "equity positions" but he is keeping an open mind.

Rig 63 is a $22.6-million joint venture between Calgary based Akita and the Inuvialuit Development Corporation in the form of Akita Equtak Drilling.

The rig is currently being operated by Devon Resources in a four year $22 million contract.

The $1.1 million will go toward the development corporation's line of credit it used to enter the joint venture.