Newfoundland premier demands slice of new projects
Williams cites China as example
Reuters
Thursday, June 14, 2007
ST. JOHN'S, N.L. - Raising the stakes in a stand-off with oil companies over terms for new projects off the coast of Newfoundland and Labrador, Premier Danny Williams said Wednesday his province wants an equity share of "more than five per cent."
That's up from the 4.9 per cent the Atlantic province sought in now-stalled talks with Chevron Corp. to develop the Hebron-Ben Nevis project. Williams said the old terms would still be valid for Chevron and its partners until the province unveiled its new energy plan sometime in the summer.
"We are still in good faith (with Chevron) until the energy plan is released during the summer, and that will set a percentage," Williams told Reuters in an interview.
He refused to say how big an equity stake the province would want, or when the plan would be published, but added: "We are going to be higher than five per cent. There's no doubt."
Williams said the province's demands were still far less onerous to energy companies than those from many major energy-producing regions, and he singled out China and South America as demanding big stakes from oil majors within their borders.
"In other jurisdictions, equity has today become the norm. We feel that our modest equity request is reasonable," Williams said. "But at the end of the day it all comes down to cash."
Chevron spokesman Dave Pommer declined to speculate how the company, which wants to develop Hebron with Exxon Mobil Corp. , Petro-Canada and Norsk Hydro, might react to Williams's comments.
Hebron has estimated reserves of 731 million barrels. It would be the Newfoundland's fourth big oil development after Hibernia, Terra Nova and White Rose.
"There are no negotiations taking place between the Hebron co-venturers and the Newfoundland government," he said. "We still remain open to the possibility that the project could proceed at some future date."
© The Edmonton Journal 2007
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