19 November 2009

The Philosopher’s Stone at Work: the Hebron fiscal agreement

Consistent with government policy of selling off energy assets – converting principle to cash - clause 8.4 (A) of the Hebron Fiscal Agreement exempts the NALCOR oil and gas corporation from provisions of the agreement that allow government to treat the company differently from other offshore oil companies.

Sections 8.2 and 8.3 shall not apply to OilCo as long as OilCo is a Crown
corporation of the Province.

The words “as long as” suggest a provision to cover off the potential sale of NALCOR’s oil and gas subsidiary.

It wouldn’t be necessary unless the current administration anticipated selling the asset at some point.