- The action comes with changes to royalties for Newfoundland and Labrador.
- The concrete gravity system for the West White Rose extension project is under construction at Argentia in Placentia Bay.
Cenovus Energy and its partners are pushing ahead with the West White Rose oil project, a $3.2-billion development of the White Rose oilfield in offshore Newfoundland. The deal has changed to how much royalty money the firms will have to pay to the regional government.
In separate news releases published Tuesday morning, Cenovus and Suncor — another member of the project — said the finalized deal with the region has an amended royalty structure that “safeguards the project’s economics in times of low commodity prices.”
At the Energy N.L. meeting Tuesday morning, Premier Andrew Furey said the changes mean the region will get more royalty cash when oil costs are high.
Under the new royalty regime, income is fixed at one percent for the first year or until the firms recoup their new capital expenses — whichever is longer.
Source – cbc.ca