Canada’s Maritime province, Newfoundland and Labrador, will pay C$44 million to take a five percent stake in the future development of Husky Oil’s offshore White Rose project, the first moves in a provincial plan to take “up to” 10 percent in all future energy projects.
The province will set up a state entity akin to Norway’s Petoro, provincial premier Danny Williams has announced.
“We are on the march to self-reliance and prosperity, and absolutely nothing will hold us back from our goal,” Williams, who faces an election in October, was quoted by newspaper The Globe & Mail as saying.
The provincial government had only just approved a Phase 2 for White Rose aimed at 24 million barrels of crude and 100,000 barrels per day. Once all costs are recovered, Newfoundland gets 6.5 percent of net revenues whenever the price of West Texas Intermediate is over $50 a barrel.
ws@scandoil.com
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