Ottawa to cover UN ‘Law of the Sea’ royalties for Bay du Nord, clearing path for millions in offshore payouts
There is hundreds of millions in royalties at stake, the Bay du Nord project is full of firsts, from deep water extraction to royalty agreements, one of those falls under a U.N. convention on ‘The Law of the Sea’.
It’s a relatively new act that would mean significant royalty payouts, which would then be redistributed to developing countries.
Until now, Ottawa and the Newfoundland and Labrador government hadn’t agreed on how the large royalty bill resulting from the United Nations Convention would be paid. But Ottawa has confirmed they will foot the bill, freeing the province and project owner, from taking it on.