The Provincial Government today announced restructuring of its agreement with West White Rose (WWRP) partners to facilitate a restart of the project. As a result of the agreement between the province, Cenovus and the project partners, the project was restarted earlier today.
The Honourable Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Andrew Parsons, Minister of Industry, Energy and Technology are available to speak to media this morning at the Energy NL conference, St. John’s Convention Centre, at approximately 8:35 a.m. following the premier’s speech.
The province’s royalty share is improved in a higher commodity price environment. In addition, the province will receive a $200 million Royalty Abandonment credit as well as $100 million to establish a Green Transition Fund. Further details of the fund will be released in the coming weeks.
The revised fiscal agreement announced today de-risks new capital investment by the WWRP proponents and provides safeguards to the project’s economics in periods of low commodity prices.
WWRP is expected to generate almost $20 billion in gross domestic product and over $7 billion in labour income for the province over the 14-year life of the project. It will create approximately 250 permanent platform jobs, as well as create or maintain up to 1,500 more direct and indirect jobs. Employment will begin to ramp up at the Argentia site immediately and increase through 2023.
The proponents also commit to work with the province and other third parties on advancing natural gas development.
In October 2013, Cenovus (formerly Husky) announced plans to develop WWRP via a fixed wellhead platform to tie back to the existing SeaRose FPSO. The project was released from Federal Environmental Assessment in September 2013. Originally sanctioned in 2017, major construction work on WWRP was suspended in March 2020 and a project review was announced in September of that year. As a result of this agreement, and the efforts of the Cenovus and its partners, the project has been re-started.
On April 6, 2022, the Bay du Nord Development Project was released from the Government of Canada’s environmental assessment process. The Bay du Nord project will play a key role in helping the province meet global demand for responsible, lower carbon oil while supporting our government’s commitment to Net Zero by 2050. It is also critical to the Newfoundland and Labrador economy, and will provide significant employment and economic activity.
On September 25, 2020, the Federal Government announced $320 million in funding to be administered by the Province to support direct and indirect employment in the Newfoundland and Labrador oil and gas sector and activities that generate environmental and co-benefits.
This Oil and Gas Industry Recovery Assistance Fund provided $41.5 million in funding (50 per cent of total costs) to maintain near-term jobs and protect the option of re-starting WWRP.
In May 2020, the Provincial Government committed to net zero emissions by 2050. Newfoundland and Labrador fully supports protecting the environment, reducing carbon emissions and achieving net zero by 2050.
Newfoundland and Labrador’s offshore oil and gas industry has contributed more than $24 billion in royalties to date and directly employed more than 4,000 people on producing projects as well as thousands more in supporting industries (at the end of March 2022).
Discovered in 1984, the White Rose field is located in the Jeanne d’Arc Basin; production commenced in 2005 and utilizes an FPSO vessel. There are two projects in the field: the White Rose Project, in which Cenovus holds a 60 per cent ownership with partner Suncor, which holds 40 per cent; and the White Rose Expansion Project – owned jointly between Cenovus (56.125 per cent), Suncor Energy (38.875 per cent) and Nalcor Energy Oil and Gas Inc. (5 per cent). Cenovus is the operator of both.
Quotes
“We have a responsibility to the oil and gas industry, to our province and our people to plan for the future. As we advance efforts to achieve net zero by 2050 and plan for a transition, we will foster an environment that supports our economy by embracing renewable energy while maximizing our low-carbon oil and gas advantage.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“Other parts of the world will continue to produce oil – and our oil and gas is a responsible choice. Newfoundland and Labrador recognizes and supports both the significant opportunities renewable energy presents in terms of economic development and environmental progress as well as the important role that oil and gas will continue to play for the foreseeable future.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
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Media contacts
Meghan McCabe
Office of the Premier
709-729-3960
meghanmccabe@gov.nl.ca
Kelly-Anne Roberts
Industry, Energy and Technology
709-729-5248, 327-7005
kelly-anneroberts@gov.nl.ca