The Honourable Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today provided the following statement regarding the Terra Nova project:
“Our government is pleased with the announcement this evening that project owners have reached an agreement in principle to restructure the project ownership and provide short-term funding towards continuing the development of the Asset Life Extension Project, with the intent to move to a sanction decision in the fall.
Our government is, and continues to be, supportive of the province’s oil and gas industry and we are pleased on behalf of workers and their families that project owners have reached this interim equity solution and continue to work to secure this project for the next 10 years.
To support the long-term viability and benefits attached to the Terra Nova project, we committed over $500 million in financial assistance over the remaining life of the project through the direct contribution of $205 million from the Newfoundland and Labrador Oil and Gas Industry Recovery Assistance Fund, an increase of $30 million from the original MOU terms, as well as changes to the royalty structure valued at over $300 million. We are pleased that this financial support has assisted project owners in reaching this interim agreement.
Thank you to Suncor, as the project lead, for its continuing commitment to seeking a way to make this project work. And thank you to other project owners for their continued support of this project and the oil and gas sector, and in our province and its people. We hope this significant first step leads to securing this asset for long-term production and employment.
This is a good news announcement today and we are optimistic that there will be even brighter days ahead for the employees and our province.”
Premier Furey and Minister Parsons will be available to the media at 10:30 a.m. tomorrow (Thursday, June 17) in the Confederation Building, East Block.
-30-
Media contacts
Meghan McCabe
Office of the Premier
709-729-3960
meghanmccabe@gov.nl.ca
Eric Humber
Industry, Energy and Technology
709-729-5777, 725-9655
erichumber@gov.nl.ca