The provincial government has reached a settlement with Exxon Mobil over construction work associated with the Hebron oil development.
Premier Kathy Dunderdale held a news conference this afternoon to say $150 million will be paid to the province in exchange for lost work.
The payment will be given in June of 2016.
She said the government is always working to make sure the government gets "maximum benefit" on the Hebron project.
Dunderdale was flanked by Finance Minister Tom Marshall and Natural Resources Minister Jerome Kennedy.
In the original Hebron benefits agreement, the provincial government negotiated for three topsides modules to be built in the province.
One module is being built at Bull Arm and the other one is being constructed in Marystown, but Exxon Mobil says there's nowhere to build the third module in the province, and if they tried to build it here, the project would be irreparably delayed.
The provincial government had insisted that the third module could also be built at Bull Arm.
A news release notes the Hebron oil field contains in excess of 704 million barrels of recoverable resources, based on estimates of the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB).
Current analysis indicates the total value of Hebron to the province to be in excess of $20 billion.
Peak employment is estimated at 3,500 persons, and current estimates are that approximately 11 million person hours of employment will occur in the province exceeding expectations at the signing of the Benefits Agreement due to the overall growth of the project.
As a result of 20 to 30 per cent growth in topside weight, additional employment is anticipated with in-province Hebron work even with the third module fabricated out of province.
The provisions in the Hebron Benefits Agreement provided opportunity to address disputes related to in-province fabrication. Following mediation, the provincial government and project proponents ExxonMobil, Chevron Canada Limited, Statoil Canada Limited, Suncor Energy Inc., and Nalcor Energy – Oil and Gas Inc. settled on compensation.
Full coverage in Friday’s print edition.