| Serial | Item | Description | Amount | Funding source |
| 1. | Equity interest | $110 million | Paid from FY 2007 general revenue | |
| 2. | Capital Expenditure | 4.9% X $6.0 billion | $294 million | Increased public debt |
| 3. | Operating Expenditure | 4.9% X $10 billion | $490 million | Likely increased public debt, at least until sometime after first oil |
| 4. | Liability guarantee | Construction phase only | $250 million | Increased public debt? |
| 5. | Sub-total | Sum 1 - 4 | $1.193 billion | |
| 6. | Liability | Operational phase | Unknown | Increased public debt |
Notes (Information on news release, plus media coverage):
- Capital expenditure (capex: construction phase costs) to be undertaken by subsidiary of Ener Corp - called OilCo in government materials - through borrowing guaranteed by public treasury.
- Actual capex is currently unknown, but estimated to be between $4.0 and $6.0 billion.
- The government backgrounder makes no mention of operations expenditures (opex: post first oil operating costs). Presumably these costs will be met through increased public debt. (Government Ener Corp borrowing, with government guarantee.)
- Original equity interest purchased out of government general revenue. The most likely source of cash to meet all other costs is government-backed borrowing.
- Construction to begin "as early as" 2012 (Premier's remarks to media). This is a minimum, not a maximum. Construction may be delayed for currently unknown reasons. Company representatives discussed firming up capex estimates over next few years.
- The term liability guarantee is unusual in the context of referring to a maximum cost of $250 million. It is unclear what this means. It does not necessarily mean that somehow OilCo and the provincial government have a limited liaibility for costs. If that was the case, then the backgrounder would have stated that the liability was limited to a maximum of $250 million. This appears to be less an issue of liability than a promise that liability will be assumed/accepted by government, along with some associated fee, deposit or other sum that signifies the guarantee or a fee for providing the guarantee (Oilco to prov gov).
- Whatever it is, the figure of $250 million is not the only amount associated with liability. The government backgrounder gives very little discussion of liability at all. For example, there is no discussion of liability exposure during the operational phase, for example.
-srbp-