N.L. premier on the ‘new frontier’ of offshore oil

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five years ago a big Discovery was made off the coast of Newfoundland and Labrador 300 million barrels of oil buried deep beneath the ocean not even a year later oil prices collapsed and Newfoundland booming economy went bust but has somewhat recovered The Province wants to tap those oil riches today it announced an agreement with Ecuador Canada to develop the Bajan or offshore oil project the province is taking a 10% stake in the nearly seven billion dollar project it estimates that should bring 3.5 billion dollars in new revenue and the operations phase will create 500 jobs over the next 12 years the province claims the Bajan or Discovery is about 500 East of St John’s at a depth of about 12 that’s 10 times deeper than the province’s current deepest offshore site so is the promise expecting any political hurdles with this project and could it be risky given how volatile oil prices are joining me now from dear in his district of Hummer gross morne is the premier of Newfoundland and Labrador Dwight ball ball thanks for being with us I really appreciate it must your Province get over to make the project a reality are there any federal regulations for example or processes that the project has to clear between 20 and 1st discussions with with regulators do you have certainty about what to expect we have a robust regulatory he replaces from working with a lot of success basic agreement today if the price drops below that level again as it has in the past for example in 2013 We Takin Over 10% equity share even on the lower end of this project for all those are you concerned at all though that the company behind it will drop the project if oil drops below I understand I take your point about it going up and down but if it does drop below me see a big hit like we have in the past that break even point working all around the world very stable this is a great place to invest in jurisdiction in the world due to the drop in oil prices from a few years back and they’ve proven as you’ve taught as we talked about to be volatile we’re also supposed to be in this world is moving towards a low-carbon future are you concerned at all that perhaps you’re putting too many eggs into the oil and gas basket because when you when you look at the petroleum products by based on commodity it’s just not as well Carter 4-barrel of welders no place in the world if in the world over 16 billion dollars invested in our father and some of that much of that has been in the mining industry we had were seeing growth and agriculture aquaculture that we need to divert sorry, we’ve been putting a big focus on that in the front premier of the United Nations convention on the law of the sea that convention requires payments on the quote exploitation of the non-living resources of the continental shelf Beyond 200 nautical miles that could mean percent of revenues of this project must be paid to the UN have you worked with the federal government who will pay that I would be in that position this is a federal government responsibilities it’s outside or 200-mile limited so we vodka well it is your responsibility there’s a lot of investing some benefits as a result of pay that Davis dates on that agreement so they do not come to us to ask for permission
Newfoundland and Labrador Premier Dwight Ball discusses the new Bay du Nord oil project — the province’s first remote, deepwater, offshore project — as well as the province’s plan to buy 10 per cent of the overall project.

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