N.L. announces $16B Hebron oilfield deal
[Last Updated: Wednesday, August 22, 2007 | 4:07 PM NT
CBC News
Newfoundland and Labrador and a consortium led by Chevron have made a multibillion-dollar deal on the Hebron offshore oilfield project, Premier Danny Williams said Wednesday.
The deal is expected to generate revenues for the province of $16 billion over the 25-year life of the project, Williams said at a press conference in St. John's. The federal government will receive $7 billion, he said.
The deal will include a 4.9 per cent equity stake that the province will purchase for $110 million, a cost described by Williams as a "wise and strategic investment in our province's future."
Under the deal, the province will also receive "super-royalties," or tier-three royalties, meaning as the price of oil rises, so too will the royalty benefits paid to the province.
"We have signed a historic [memorandum of understanding] for this province, which will assist Newfoundland and Labrador in achieving economic self-reliance to which we have aspired," Williams said. "We are becoming, step by step, masters of our own house."
Williams called Wednesday an "exciting" and "historic" day for the province.
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Great news for Newfoundland and Labrador!
http://www.cbc.ca/canada/newfoundland-labr...ebron-deal.html