Hope is fading fast for a deal to extend the life of the Terra Nova oil project.
With only days to go before the June 15 deadline imposed by operators, Energy Minister Andrew Parsons met with reporters to say no solution has been found to the impasse.
Parsons noted more than 85 per cent of current oil reserves in Terra Nova have already been produced. He says while current project owners are already committed to abandonment costs at a future date, the province—as a new equity owner—would be committing hundreds of millions of dollars without any guarantee of a return.
It’s estimated total abandonment costs are in the range of $1-billion—15 per cent of which the province would be on the hook for if they joined the partnership.
Reports indicate four of the seven original partners, including ExxonMobil, have already signaled their intention to leave the project.
Parsons, meanwhile, is calling on project owners to continue to negotiate over the coming days to find an equity solution.