![]() "This project has provided billions of dollars in revenue to both the operating partners and governments, and I do not believe anyone can or should simply walk away." "We must get back to that place," Johnson said. Noia CEO Charlene Johnson said in statement she encourages all parties to continue to find a resolution and noted that in January it appeared a deal might be struck. The Newfoundland and Labrador Oil and Gas Industries Association, known as Noia, also fears for the workers, their families and the loss of spin off benefits if the project is axed. Mercer said hundreds of workers are scrambling to figure out a way to provide for their families. "The rest is the royalty regime, which should not be a factor in this," he said in an emailed statement that said the government has "helped cripple any chance of hundreds of workers going back to work in this province," Mercer said in a statement. (Mike Simms/CBC)ĭave Mercer, president of Unifor Local 2121, which represents workers on the Terra Nova project, told CBC News he questions the province's investment proposal, since most of the money comes from federal funding. Given our fiscal situations we cannot support this project at all costs."ĭave Mercer, Unifor president for local 2121, said in a statement on Thursday that hundreds of workers are now scrambling to find a way to support their families. "However, we as a government and a province have a duty to all residents. ![]() "Our government is and continues to be supportive of the province's oil and gas industry and the Terra Nova project as demonstrated by this significant offer that's on the table," he said. The offer has not been accepted by the project's owners, Parsons said, but it's still on the table. Those incentives, according to Parsons, added up to nearly half a billion dollars, and would kick in only if the companies agreed to a long-term plan to resume production. Parsons said the province then upped its offer to $205 million. In a bid to save the project, the provincial government offered the oil companies $175 million in cash from an oil industry recovery fund created with federal money, and a break on royalty payments to the governments. "While the provincial government has and had discussed terms on taking an equity stake in the project, the risk has proven to be too great for a project which is so late in its life," Parsons said. Sources say the province felt the risks were too high, and that it had already offered significant support in the form of grants and royalty relief. Parsons told reporters Thursday that despite "significant efforts on the part of all parties" and a "significant financial offer" from the province, the future of the project remains uncertain.ĬBC News, through sources, has learned that the lead partner and operator for the field, Calgary-based Suncor Energy, asked the provincial government to take a 15 per cent ownership stake in Terra Nova. It's not clear what this means to the future of the oilfield, but sources say it's now up to the oil companies to find a way forward without relying on the province as a business partner. Talks aimed at saving the Terra Nova oilfield in Newfoundland and Labrador's offshore have broken down, according to Energy Minister Andrew Parsons, with the provincial government rejecting a request from the oil companies involved to purchase an equity stake in the troubled project.
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