WE ARE POISED FOR NEW INVESTMENT, GROWTH, AND JOBS.
The potential in our oil and gas industry is incredible. Starting in 2020 there will be even more jobs for Newfoundlanders and Labradorians. Your Liberal Government’s plan is to ensure Newfoundland and Labrador continues to be a globally-preferred location for investment to ensure lasting benefits and to employ hundreds more people in direct operations in oil and gas.
In November 2018, the province received record bids for offshore exploration totalling $1.38 billion. We are attracting investment and growing activity in our oil and gas industry:
- Over 650 leads and prospects
- Less than 7 per cent licensed
- More than 20 basins mapped
- 7 new entrants in the past 2 years
- $2.6 billion in recent exploration work commitments
Newfoundland and Labrador’s oil and gas resource potential represents a significant opportunity for jobs and growth in the industry.
CREATING JOBS IN NEWFOUNDLAND AND LABRADOR: THE BAY DU NORD DEEPWATER OIL AND GAS PRODUCTION.
Your Liberal Government is dedicated to bringing economic activity to our doorstep and the Bay du Nord Project will provide significant benefits including new employment opportunities over the life of the project.
The Bay du Nord project is expected to involve an estimated in-province employment of 11,000 person years of employment over the life of the field (i.e. 11,000 jobs). That amounts to 84% of total project employment staying within the province.
In-province fabrication of 5,000 metric tonnes within a competitive bid framework. Of that:
- 4,600 metric tonnes is related to Bay du Nord
- 400 metric tonnes is conditional on Baccalieu subsea tieback
- There will be new Newfoundland and Labrador fabrication capabilities, and a multi-million dollar investment in a large-scale steel roller to be used to manufacture suction anchors for moorings
- These new capabilities are applicable to future subsea tiebacks, global work, etc. helping to further position Newfoundland and Labrador as a global player in the offshore oil and gas industry
PIONEERING THE DEEPWATER OIL AND GAS INDUSTRY IN NEWFOUNDLAND AND LABRADOR.
Your Liberal Government is taking the first step into a new frontier for the province’s oil and gas industry – deepwater production and the development of the Bay du Nord Project. Discovered in 2013, the Bay du Nord Project is expected to be sanctioned in 2020, with first oil expected in 2025.
With reserves of nearly 300 million barrels of oil, Bay du Nord is the first remote, deepwater project in the province’s offshore. It opens a new basin – the Flemish Pass and is the first project to be negotiated under Newfoundland and Labrador’s generic oil royalty regulations. The project has many benefits, including:
- More than $14 billion in economic activity (in 2017 dollars)
- In-province employment of 22.3 million person hours over the life of the project
(approximately 11,000 person years)
- Estimated $3.5 billion in government revenues
- Expected in-province fabrication of 5,000 metric tonnes
- Focus on subsea engineering and new fabrication capabilities
- A minimum $75 million in research and development, and education and training expenditures over 10 years to position Newfoundland and Labrador as a deepwater centre of excellence
- Equity stake of 10 per cent.
Bay du Nord is an important project for the province:
- Alignment with Advance 2030 goals to increase activity
- Demonstrates that remote deepwater fields can be developed offshore NL
- Expected to lead to increased exploration opportunities
- Significant drilling and completions work prior to first oil
- New employment opportunities during the engineering, development and operations phases
- A focus on enhancing subsea engineering and fabrication capabilities
ECONOMIC IMPACT OF THE OIL AND GAS INDUSTRY TO THE PROVINCE.
It has been 20 years since first oil was produced from the Hibernia project and the projected field life has been extended beyond 2040. The Hebron oil field, discovered in 1980, achieved first oil in 2017 and is expected to produce more than 700 million barrels of oil. In May 2017, Husky Energy and its partners announced they were proceeding with the West White Rose Extension Project with first oil expected in 2022 and an extension of the Terra Nova field is anticipated.
We are well positioned to build on our demonstrated success over the past 20 years:
- 4 Major Producing Projects Producing 25% of Canada’s conventional light crude
- Over 1.7 Billion Barrels of oil produced since 1997
- 25 per cent of provincial GDP and 41 per cent of exports over the past 20 years
- Over $506 million spent on R&D and education and training since April 1, 2004
- Over $56.1 billion in industry expenditures since 1966
- 5,251 people directly employed in construction and operations on four offshore projects as of December 2017 (85 per cent were residents of Newfoundland and Labrador)
- $19.8 billion in cumulative royalties to the Provincial Government as of March 31, 2017