The latest offshore oil spill will mean a further impact to the province’s operating budget for the year.
Production was shut down again on the weekend, only a day after production had resumed following a spill in July. This marks the third spill in the offshore in less than a year. Officials say an estimated 2,200 litres of oil was released into the ocean during a power outage on Saturday.
Finance Minister Tom Osborne told VOCM Open Line with Linda Swain, government’s main priorities are the health and safety of offshore workers and protecting the environment—but he admits there is a financial impact, too.
Osborne says the deferred royalty impact of a shut-down at Hibernia is about $2.5-million a day.
The total impact of last month’s 28-day shut down was an estimated $70-million.