Premier Marks First Step into New Frontier for Oil and Gas Industry
Premier Dwight Ball announced the first step into a new frontier for the province’s oil and gas industry – deepwater production.
Premier Ball was joined at the announcement by Siobhan Coady, Minister of Natural Resources, Unni Fjaer, Vice President, Offshore Newfoundland, Equinor Canada, and Trevor Pritchard, Senior Vice President, Atlantic Region, Husky Energy, to finalize a framework agreement for the development of the Bay du Nord Project.
Discovered in 2013, the Bay du Nord Project is expected to be sanctioned in 2020, with first oil expected in 2025. With reserves of nearly 300 million barrels of oil, Bay du Nord is the first remote, deepwater project in the province’s offshore (500 kilometres from shore and approximately 1,200 metres deep). It opens a new basin – the Flemish Pass and is the first project to be negotiated under Newfoundland and Labrador’s generic oil royalty regulations.
The project has many benefits for the people of Newfoundland and Labrador, including:
More than $14 billion in economic activity (in 2017 dollars);
In-province employment of 22.3 million person hours over the life of the project (approximately 11,000 person years);
Estimated $3.5 billion in government revenues;
Expected in-province fabrication of 5,000 metric tonnes;
Focus on subsea engineering and new fabrication capabilities;
A minimum $75 million in research and development, and education and training expenditures over 10 years to position Newfoundland and Labrador as a deepwater centre of excellence; and
Equity stake of 10 per cent.