May 29, 2017
Government of Newfoundland and Labrador and Husky Announce White Rose Extension; More than $3 Billion in Royalties and Equity for the Province
The Government of Newfoundland and Labrador and Husky Energy today announced that Husky Energy, as operator, is moving forward with the West White Rose project offshore Newfoundland and Labrador. First oil is expected in 2022 with direct employment, business and other industrial benefits provided to the province totalling more than $3 billion in provincial royalties, equity, and taxes.
The project will provide significant employment and procurement opportunities for residents. Benefits of this project include:
- More than 10 million person-hours of employment during the engineering and construction phases; 9.7 million in direct employment;
- In comparison to 2013 projections, there will be approximately 5,000 person years of employment through construction. This represents a 72 per cent increase since 2013;
- 250 permanent platform jobs once operational;
- Construction of the concrete gravity structure in Argentia;
- Engineering and fabrication of the accommodation module in the province;
- Fabrication of the flare boom, helideck, and life boat stations in the province;
- Contribution of $60 million to an Innovation and Business Development Fund to be administered by the Provincial Government for strategic investments to grow industry capacity; and
- Collaboration between Husky Energy and the Provincial Government on future supplier development.
Wellhead platform construction will begin in late 2017. At peak production, the project will produce approximately 75,000 barrels of oil per day in 2025.
Husky Energy and its partners, Suncor Energy and Nalcor Energy, will use a fixed wellhead platform tied back to the SeaRose floating production, storage and offloading vessel. The platform, which has received regulatory approval, will enable Husky and its partners to maximize resource recovery in the region.
Discovered in 1984, the main White Rose field is located approximately 350 kilometres east of St. John’s, on the eastern edge of the Jeanne d’Arc Basin. Commercial oil production from the While Rose field began on November 12, 2005.
The agreement between the Government of Newfoundland and Labrador and Husky Energy can be found at www.nr.gov.nl.ca/nr/energy/petroleum/offshore/projects/whiterose_ext.html.
“Newfoundland and Labrador has positioned itself at the forefront of the global oil and gas industry. This is reflected in today’s announcement as the West White Rose Project is the largest oil and gas production project to move forward in Canada this year. I am excited at the benefits that this will bring to our local industries, workforce, and communities throughout the province.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“From exploration to discovery to production, the long-term view for oil and gas exploration and development in Newfoundland and Labrador is exciting. The announcement of the West White Rose wellhead project is a vote of confidence in the industry and in the expertise, skills, knowledge and opportunity here in Newfoundland and Labrador. I thank Husky Energy for their continued commitment to the province and its people.”
Honourable Siobhan Coady
Minister of Natural Resources
“The West White Rose wellhead platform project is the next chapter of our Atlantic Region story. Maximizing the use of our existing infrastructure and the SeaRose FPSO vessel significantly improves project economics, making the wellhead platform the best way to develop the field’s resources, maximize oil recovery and generate value for the province, Husky and our partners.”
Husky Energy Senior Vice President, Atlantic Region
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Office of the Premier
Manager, Media & Issues
Husky Energy Inc.
2017 05 29 10:15 a.m.