Talks between the province and the Terra Nova oilfield partners have hit an impasse and the future of the project is uncertain, Energy Minister Andrew Parsons announced Thursday.
Parsons says the province offered more than $500 million in financial assistance over the life of the project. That included $205 million from the federal oil and gas fund, an increase of $30 million from the initial offer, and a break on royalties worth over $300 million. But those terms were not accepted and the parties are at an impasse.
Parsons says there were discussions about the province taking an equity stake in the project, but doing so would be too risky given the government’s fiscal state and the cost of abandoning the project.
Suncor has set a deadline of June 15 for the project partners to decide whether to extend the life of the project or abandon it. The FPSO has been docked in Bull Arm since last year when a retrofit in Spain was cancelled by the COVID-19 pandemic.