News

Terra Nova oilfield shutdown could cost N.L. hundreds of millions of dollars

Terra Nova oilfield shutdown could cost N.L. hundreds of millions of dollars
Business
ST. JOHN’S, N.L. - Newfoundland and Labrador’s Energy Minister says the full shutdown of the dormant Terra Nova offshore oilfield could leave the province on the hook for hundreds of millions of dollars in royalty paybacks.

Andrew Parsons told reporters today the province has offered the field’s operators nearly $500 million in incentives to get the project back on track, to no avail.

According to provincial legislation, companies operating offshore oil projects can reclaim decommissioning costs against previous royalty payments to the government.

Mark Little, president of Terra Nova’s main operator, Suncor Energy, said last month some partners aren’t on board to pay for the extensive work required to keep the oilfield pumping and a decision about whether to abandon the field is expected June 15.

Parsons said today the total costs of abandonment, including costs to the province, are hard to specify but said he expects them to be in the hundreds of millions of dollars.
Read more on Toronto Star
News Topics :
Similar Articles :
Business
ST. JOHN’S, N.L. Newfoundland and Labrador’s energy minister says the $505 million in cash and royalty adjustments the province offered to the owners of the Terra Nova oilfield represents...
Business
ST. JOHN’S, N.L. Newfoundland and Labrador is offering $175 million to the owners of the dormant Terra Nova offshore oilfield, but only if oil starts pumping again. The announcement...
Business
ST. JOHN’S, N.L. The head of the union representing workers at the Terra Nova oilfield off the coast of Newfoundland says he’s worried about the economic ripple effects if...
Business
ST. JOHN’S, Antigua And Barbuda At the beginning of 2020, decommissioning Newfoundland and Labrador’s offshore oil installations seemed a distant concern. But after a crash in oil prices amid...
Business
CALGARY The beleaguered Terra Nova oilfield off the coast of Newfoundland and Labrador could live to pump another day after its owners reached a restructuring agreement in the eleventh...