Top News

Husky moving quickly on $3B White Rose Extension

Premier Dwight Ball and Natural Resources Minister Siobhan Coady speak with reporters in St. John’s Monday following the announcement that Husky Energy’s  $3-billion White Rose Extension oilfield is going ahead.
Premier Dwight Ball and Natural Resources Minister Siobhan Coady speak with reporters in St. John’s Monday following the announcement that Husky Energy’s $3-billion White Rose Extension oilfield is going ahead.

Husky Energy will begin work almost immediately on a major extension to the White Rose oilfield, which will create hundreds of construction jobs in the province, and ultimately bring billions of dollars to the provincial government through taxes and royalties.

Malcolm Maclean, Husky Energy’s senior vice-president for the Atlantic Region, scrums with the media following the formal White Rose Extension announcement in St. John’s Monday morning.

At the Monday morning event at The Rooms where the deal was announced, everybody was smiling and talking about all the jobs that will be created — roughly 500 person-years of employment, along with around 250 jobs on the new oil platform once it’s up and running in 2022.

“It’s a good deal for Newfoundland and Labrador, lots of employment coming here,” Premier Dwight Ball.

First oil is anticipated for 2022, with an anticipated production of some 75,000 barrels per day produced by 2025.

Eaelier story:

White Rose extension sanctioned; first oil projected for 2022


Ivan Genge, with the province’s carpenters’ union, said that labour groups have been negotiating with Husky Energy in recent weeks, and they’re also excited to get to work.

“To have this project starting right on the heels of the Hebron job, it’s good for sure. It’s good for the province, and it keeps people working,” he said.

“Usually we have these lulls between the projects, and people are out of work and have to travel. But hopefully it’ll keep people in the province and keep our tradespeople working.”

The White Rose extension will be a small gravity based platform which will tie into the Sea Rose FPSO to pump more oil from the existing oil field. The concrete gravity structure will be built at a drydock in Argentia.

And while he said it was too early to talk about specific numbers, Husky vice-president Malcolm Maclean said that the company has found more oil out there.

Maclean said that the over the 25-year life of the project, he’s anticipating it will create between $3 billion to $4 billion in revenue from taxes and royalties, depending on the price of oil.

“It could be more, but we don’t think it will be any less than about $3 billion, which is the prediction at the current oil price,” he said.

In the House of Assembly later in the day, opposition politicians complained that some of the topsides modules which will be part of the project will be built outside the province, in the United States.

Natural Resources Minister Siobhan Coady countered that the cement base of the wellhead platform, along with the accommodations module, the lifeboat station and the flare boom will all be built in Newfoundland and Labrador.

 

jmcleod@thetelegram.com

Latest News