West White Rose to proceed

Photo: CTV

The Newfoundland and Labrador government was exultant Monday as Husky Energy announced it will finally proceed with the multimillion-dollar West White Rose project, with first oil five years away.

The company said it will use a fixed wellhead platform tied to the SeaRose floating production, storage and offloading vessel, known as an FPSO. First oil is expected in 2022 and could reach a gross peak production rate of approximately 75,000 barrels per day by 2025.

"Moving forward with this project is a significant milestone for Husky, while creating jobs, royalties and other benefits for Newfoundland and Labrador," CEO Rob Peabody said in a statement.

"This project is of a scale approaching the original White Rose development and is able to use the existing SeaRose FPSO to process and export production."

Premier Dwight Ball said construction will start in Argentia, N.L., this year. It will employ about 700 people at peak, he said. Accommodation design and other components will add to that total.

Direct benefits will include more than $3 billion in royalties, equity and taxes.

It's much-needed economic good news in a province that has reeled since the collapse of oil prices starting in 2014 hammered its finances.

There is much more oil to tap, Ball said: "Our future is bright."