Olivia Woods
The Calgary-based company is going forward with the $3.2-billion oil project, West White Rose, in offshore Newfoundland which was put on hold in March 2020 when the COVID-19 pandemic started.
The agreement includes modifications to how much royalty money Cenovus and its partners are responsible for paying the provincial government.
On Tuesday morning, Cenovus and one of the project partners, Suncor, in a press release said that the finalized deal with the province contains an amender royalty structure that “safeguards to the project’s economics in periods of low commodity prices.”
N.L. Premier Andrew Furey said at the Energy N.L. conference that the province will receive more royalty money when oil prices increase as a result of the new adjustments.
“In a high-price environment, we could be up to 42.5% extra royalties on this project.”
He also estimates about 250 permanent jobs and 1,500 construction-related jobs in Argentia.
Cenovus CEO Alex Pourbaix also declared in a statement, “the joint venture owners have worked together to significantly de-risk this project over the past 16 months. As a result, we’re confident restarting West White Rose provides superior value for our shareholders compared with the option of abandonment and decommissioning.”
Original source material for this article taken from here
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