The following statement was given today in the House of Assembly by the Honourable Derrick Dalley, Minister of Natural Resources:

Agreement Advances the Development of the White Rose Extension Project

Mr. Speaker, I rise in this Honourable House today to applaud the agreement with Husky Energy and its partners to advance the development of the White Rose Extension Project.

Amendments to the benefits terms of the 2007 White Rose Expansion Project Framework Agreement enhance employment and industrial benefits for the people of Newfoundland and Labrador. This will allow for the development of the West White Rose using a wellhead platform, instead of the subsea development as originally planned.

A wellhead platform represents an innovative way for smaller satellite developments in Newfoundland and Labrador. This option demonstrates prudent resource development by increasing recoverable oil resources and extending the field’s life. The platform will deliver an estimated 115 million barrels of oil.

Based on the latest PIRA crude oil price outlook, full development of West White Rose is estimated to return $3 billion in royalties, return on investment through Nalcor Energy, and corporate income tax to the province.

To enable construction of the concrete gravity structure, a graving dock complete with gates will be built in Argentia by the proponents. This will position Argentia as an important new player in the province’s oil industry and spur continued opportunities for regional growth and development as well as spin-off benefits for residents and businesses in the area. The gates represent a new, significant piece of infrastructure in the province and are reusable for future industrial work.

Mr. Speaker, there will be 1,000 people employed at peak construction for the White Rose Extension Project which includes 500 skilled trades positions involved in the construction of the concrete gravity structure in Argentia. Once in operation, there will be 250 new platform positions created in the province.

The West White Rose Extension Project builds on the exciting momentum happening in the province’s offshore petroleum industry, which continues to provide tremendous benefits to Newfoundlanders and Labradorians.

Thank you.

2013 11 06                                     2:10 p.m.