(Photo courtesy of Trades NL.)
The relaunch of the West White Rose project is music for the ears of workers, businesses and government.
But a manager with lead partner Cenovus says it was certainly not the original plan, which was to leave the field.
Jonathan Brown is the company’s vice president of east coast operations.
He says dismantling was the base case and that this prospect was “extremely real” not long ago, adding a lot of work and time to change that scenario.
Brown credited in part the renewed gift formula, which follows the Newfoundland staff and rewards the government when oil prices are high and helps businesses when they are low.
He says a middle ground was found that recognizes the importance of performance for the government, along with the risks to companies during volatility.
The project is expected to extend the life of the oil field by 14 years and produce another 200 million barrels of oil.
Provincial revenue for the project is estimated at $ 2.7 billion based on a $ 65 barrel of oil.
The activity will start almost immediately in Argentia, with about 1,500 jobs online next year.