“This framework agreement brings significant clarity and stability as Equinor and our partner Husky Energy work to move this project forward in the coming years toward a sanction decision,” said Unni Fjaer, Vice President, Newfoundland Offshore, Equinor Canada, in a statement announcing the agreement. “We are also welcoming our new participation partner, the province`s energy company, to the project. At the end of July 2018, Equinor Canada Ltd. (formerly Statoil Canada Ltd.) and the Premier of Newfoundland and Labrador have announced a framework agreement for the possible development of the North Bay oil discovery, located approximately 500 kilometres from the coast.1 Faced with the impasse in the state`s proposed regulated pipelines, and amid widespread concerns about the flight of capital from the Canadian oil and gas sector. “2 The announcement was hailed as a rare good news for Canada`s raw materials industry. It was announced by the Prime Minister as a first step towards a new frontier, as well as a new era of deep-sea exploration in a new basin, the Flemish passport: “The future of our offshore begins today.” 3 The North Bay Development Framework Agreement, announced on 26 July 2018, appears to remain silent on the question of who bears the costs of implementing Article 82. This may indicate that Newfoundland and Labrador will take the position that there is no need to address the problem between the province and project proponents, so that Canada remains alone to bear these costs. It is apparent from these provisions that Canada has not been able to pass on the costs of fulfilling its section 82 commitment to the industry without the newfoundland and Labrador agreement. In addition, the province, not Canada, should implement such a proposal through tax agreements with industry. We are ready to explore this [revenue sharing] possibility and we are ready to support this principle to encourage accommodation. The two conditions – and I have pointed out – on the basis of which Canada would be prepared to support such a principle would be: first, that any agreement drawn up should not deviate in any way from our sovereign rights established to the edge of the margin; And second, that financial contributions would go primarily to developing countries, particularly the least developed countries of them.16 Newfoundland and Labrador Enlisted in the deepwater production scene on July 26, the government signed a framework agreement for the Northern Bay oil project led by Equinor Canada.
North Bay Project Framework Agreement. Opening of a new basin, the Flemish pass. The 2005 Atlantic Agreement calls for the agreement to be reviewed by March 31, 2019.26 On February 13, 2018, at the annual meeting of the Newfoundland and Labrador Oil and Gas Industries Association, Premier Dwight Ball said the province had written to the Prime Minister to begin the review process to improve the benefits to the province through offshore activities. Up to eight slots in the FPSO tower will be used as part of North Core Bay, so four remain free for satellite tiebacks.