29 May 2010

Principal beneficiary

Newfoundland and Labrador’s royalty take from the offshore in 2009 (entirely based on 1985 Atlantic Accord and deals negotiated pre-2003): $1,826.3 million

Federal government take from Hibernia 8.5% share:  $107 million

That’s not bad for a bunch that supposedly couldn’t negotiate deals.



Geoff Meeker said...

The obvious question is, why does the premier want to buy out 8.5 percent of a declining field, now that we're getting 30 percent royalty?

Ed Hollett said...

Well, aside from the fundamental value of running an oil company anyway (which is open to debate given the conflict of interest inherent in it), this 8.5 would give a tiny bit mroe cash from the whole Hibernia field.

For the provincial treasury it means nothing since all the cash stays with NALCOR.