The project pays 1 per cent to 7.5 per cent of gross revenue based on cumulative production and/or simple payout (same as existing generic)
Net Royalty:
Tier One royalty will apply to Expansion: 20 per cent of net revenue after Tier One payout (same as existing generic)
Tier Two royalty will apply to Expansion: Additional 10 per cent of net revenue after Tier Two payout (same as existing generic)
New super royalty adds an additional royalty of 6.5 per cent of net revenue, over and above the existing net royalty, when West Texas Intermediate crude oil trades above US$50 per barrel any time after Tier One payout
Industrial Benefits
All work that can be done in Newfoundland and Labrador will be done in Newfoundland and Labrador. Work that can be done includes: all Front-End Engineering and Design (FEED); detailed engineering project management; procurement management. This also includes the following fabrication work:
Manifolds, including foundations and piles
Flowline end manifold modules
Temporary and permanent guide bases
Rigid spools
Foundations for subsea distribution units
Riser gravity bases
Hull and turret modifications not requiring dry-dock
Topsides and turret module modifications
Hook-up and commissioning
Concrete mattresses (if required)
The operator estimates the project will require approximately 9.6 million person hours of work over its lifetime. Approximately 9 million (93 per cent) of those hours will be completed in Newfoundland and Labrador.
