Thursday, September 13, 2007

Newfoundland National Oil Corporation

The Globe provides a convenient link:
...the province would pay around $44-million to take a 5-per-cent stake in future extensions to White Rose, although that amount could change if exploration efforts indicate the oil reservoir - estimated to have reserves of 214 million barrels - turns out to be a different size than believed.

Plus, there are ambitious future plans:
Newfoundland and Labrador will seek a 10 per cent ownership stake in all oil and gas projects, Premier Danny Williams announced yesterday as he unveiled the province's first long-term energy plan.

Now, I'm not opposed to minority holdings by government in oil projects. Newfoundland has lost out - substantially - on previous resource plays. See: Churchill Falls. As long as government doesn't try to operate projects themselves.

The main problem, is, of course, that there's no more substantive reserves to exploit, now that Hebron's signed.

No comments: