Energy Ministry Say It Is Considering Terra Nova Equity Stake Even As Talks Shift Into Critical Phase

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Energy ministry in Newfoundland and Labrador says it is considering purchasing Terra Nova stake, but added that it would only do so if the benefits make sense.

Although such a move would be in contradiction to the big reset, a report prepared by the recovery team, Minister Andrew Parson noted that they are not above purchasing a stake in the troubled oilfield.

He added that their approach to the entity’s future wasn’t influenced by the most recent report of the economics committee that was led by Moya Green, former royal mail executive and resident of St. John.

Green made recommendations to the government, including suggesting that it sells its stocks 3 of its offshore interests as they are no longer a core function.

The recommendation also said that small provinces such as NL should not be in the business of owning oil facilities.

The worker’s union representing those who work in the Terra Nova noted that the government should acquire a stake in Terra Nova.

For a few months now, a lot of secrecy has surrounded talks between the Energy Ministry and the companies with an interest in the project as they have had a tough time reaching an arrangement that would allow production to proceed for another 10 years and generate at least 80m barrels of oil.

In the previous month, Suncor’s CEO, Mark Little, said that some of the partners are not in agreement, which threatens Tera Nova’s return to productivity.

The Energy Ministry had offered to purchase 15 percent worth of Terra Nova stake, but it is unclear whether that offer stands, how much it would cost taxpayers and the potential revenue the province will enjoy.

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