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There is no guarantee that Equinor will continue its North Bay project, but if so, a framework agreement with the provincial government is in place.
The deal, announced Thursday morning in St. John's, will result in $ 6.8 billion investment in the pre-development and development phase, of which $ 3.4 billion will be spent on Earth – Newfoundland and Labrador
The total cost of the project, including the operations phase, is estimated at $ 10.9 billion
. The oil and gas division of Energy spends almost $ 90 million to acquire a 10% stake in the deepwater project.
Premier Dwight Ball confirms that the province will eventually borrow money to finance its stock purchase. to spend now, but the possibility of a return of 800 million to 1 billion is worth it.
"I believe that every person in our province expects us to make this investment. "The rate of return of this $ 90 million […] will bring considerable and considerable benefits to the people of our province."
Equinor File Description for North Bay; predicts that Newfoundland's first oil project will reach mid-2020 pending investment decision
Projected revenues for the 12 to 20 year reserve are $ 3.5 billion, of which the major part will come from royalties came into effect last fall. The province's own funds are expected to account for the second largest portion of revenues, with taxes constituting the rest
The project is expected to create more than $ 14 billion in economic activity in the province.
2020, with the first oil by 2025. This represents a 12-year turnaround from discovery to production. By comparison, Hibernia took 25 years
In terms of benefits in that province, officials spoke of 22.3 million person-hours (11,000 person-years) during the pre-development, development and exploitation.
In order to give a more tangible figure to employment, Equinor officials estimate that there will be 500 jobs a year for 12 to 15 years during the first phase of the job market. exploitation.
Equinor suggests that there will be a rotation of 70 people aboard the new, more modern and lightweight floating production, storage and offloading (FPSO) vessel that will be built for work, a vessel-like one that the company built for his project Johan Castberg in the Barents Sea off the Norwegian coast. ] If this seems to be a small number for a project of this magnitude, it 's because a good deal of the day – to – day work will be provided by an onshore integrated operations center that will accommodate up to a maximum of one year. to 50 employees. [19659002] Unlike previous oil and gas projects in the province's offshore, where manufacturing contracts were awarded on a module-by-module basis, the agreement with Equinor covers metric tons, with 5,000 guarantees for the province in a competitive environment.
The manufacture of the hull, turret, flowlines, umbilicals and other components of the FPSO will be the subject of an international contract since the production capacity does not exist in the province yet.
by purchasing a large-scale steel roll that the successful bidder for the anchor anchor contract will use for this project and will keep it after its embedding, thereby creating a piece that can be used for the manufacture of future branches to nearby discoveries and
The agreement also includes $ 75 million over 10 years for research and development, as well as for education and the province is a center of 39 excellence for deep-sea oil and gas operations.
Ball says that the framework agreement and development potential of deep-water sites position the province as a world leader
. Bringing companies like Equinor and Husky with this oil-producing discovery will also attract other players in the industry.
Discovered in 2013 and holding a reserve of nearly 300 million barrels of oil, Bay North would be the first in the Flemish Pbad Basin – located 500 kilometers east of St. John's. s – and the world's furthest offshore oil and gas project
If this continues, it will be by far the deepest offshore project in the province. , at almost 1200 meters. By comparison, Husky's White Rose project is currently the deepest, drilling at a depth of 120 meters
Unni Fjaer, Vice President of Equinor Canada Newfoundland, acknowledged the challenges of operating in a distant and rigorous environment. , but said the company has experience to meet these challenges.
"It's the technology that Equinor has developed for many years of operations in the submarine, so that's the technology we know today." . I am certain that with good collaboration, both with the government and the supply industry in this area, we will find the solutions. "
In a technical briefing before the announcement, representatives of the Department of Natural Resources said that even the price for this project is $ 49 a barrel of oil, but an Equinor spokesperson pointed out that it is a government evaluation number and not an Equinor number because it is about confidential information and 59002] When asked what could be the number of Equinor when determining a go or no go type investment, Fjaer declined to comment.
kenn .oliver @ thetelegram.com
Twitter: kennoliver79
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