ExxonMobil's NAFTA win over oil R&D: 'corporate bullying'
Posted: Sat Mar 07, 2015 12:02 pmExxonMobil's NAFTA win over oil R&D called 'corporate bullying'
[ http://www.cbc.ca/news/canada/newfoundl ... -1.2984879 ]
CBC News Posted: Mar 06, 2015 4:33 PM NT Last Updated: Mar 06, 2015 4:35 PM
An international trade tribunal has ordered Ottawa to pay ExxonMobil and another oil company $17.3 million, following a complaint that the companies were required to spend money in Newfoundland and Labrador on research and development.
The oil companies fought the federal government in a trade challenge brought under the North American Free Trade Agreement (NAFTA).
The International Centre for Settlement of Investment Disputes made the decision through a recent tribunal, about three years after the two U.S. companies had successfully argued their NAFTA challenge, reported a trade dispute journal Investment Arbitration Reporter. The text of the decision has not yet been made public.
Under the terms of the Atlantic Accord, a federal-provincial agreement on oil development first negotiated in 1985, oil companies are required to support petroleum-focused research and development in Newfoundland and Labrador, as part of its local benefits package.
ExxonMobil is the operator of the Hibernia project, the first oilfield off eastern Newfoundland to go into production. Murphy Oil owns a minority stake in the project.
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But veteran Toronto-based trade lawyer Lawrence Herman said the case sends a clear message.
"It means governments have to be very sensitive to the need to avoid giving benefits to local providers of goods and services in one way or another," he said.
Unless the governments of Canada and Newfoundland and Labrador agree to change the R&D legislation, Ottawa could be on the hook for continued damages. The federal government is responsible because NAFTA is an agreement between sovereign nations.
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Exxon Mobil to spend $14B on Hebron project off Newfoundland coast
[ http://www.ctvnews.ca/business/exxon-mo ... -1.1101076 ]
The Canadian Press Published Friday, January 4, 2013 12:24PM EST Last Updated Friday, January 4, 2013 3:42PM EST
ST. JOHN'S, N.L. -- Newfoundland and Labrador's waning offshore oil industry received a much-needed boost Friday as a consortium of partners led by ExxonMobil Canada Properties announced it has approved the Hebron offshore oil project.
The partners will spend $14 billion to develop the oilfield, which is estimated to contain more than 700 million barrels
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"The development of Hebron will result in an increase to offshore production, provincial royalties and provide tremendous opportunity for employment and businesses in the province," Natural Resources Minister Jerome Kennedy said in a statement.
The province expects to collect about $23 billion in royalties, returns on its investment and corporate income tax, he said.
"We are optimistic that the development of Hebron will lead to further offshore opportunities and additional developments in the future."
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"With production in decline right now from the three current production facilities, this project is coming at an important time," spokeswoman Jill Piccott said in an email.
"To ensure that Newfoundland and Labrador continues to see the major benefits from the offshore industry, increasing exploration and developing new projects is key."
MORE:
[ [ http://www.ctvnews.ca/business/exxon-mo ... -1.1101076 ]
[ http://www.cbc.ca/news/canada/newfoundl ... -1.2984879 ]
CBC News Posted: Mar 06, 2015 4:33 PM NT Last Updated: Mar 06, 2015 4:35 PM
An international trade tribunal has ordered Ottawa to pay ExxonMobil and another oil company $17.3 million, following a complaint that the companies were required to spend money in Newfoundland and Labrador on research and development.
The oil companies fought the federal government in a trade challenge brought under the North American Free Trade Agreement (NAFTA).
The International Centre for Settlement of Investment Disputes made the decision through a recent tribunal, about three years after the two U.S. companies had successfully argued their NAFTA challenge, reported a trade dispute journal Investment Arbitration Reporter. The text of the decision has not yet been made public.
Under the terms of the Atlantic Accord, a federal-provincial agreement on oil development first negotiated in 1985, oil companies are required to support petroleum-focused research and development in Newfoundland and Labrador, as part of its local benefits package.
ExxonMobil is the operator of the Hibernia project, the first oilfield off eastern Newfoundland to go into production. Murphy Oil owns a minority stake in the project.
- - -SNIP - -
But veteran Toronto-based trade lawyer Lawrence Herman said the case sends a clear message.
"It means governments have to be very sensitive to the need to avoid giving benefits to local providers of goods and services in one way or another," he said.
Unless the governments of Canada and Newfoundland and Labrador agree to change the R&D legislation, Ottawa could be on the hook for continued damages. The federal government is responsible because NAFTA is an agreement between sovereign nations.
- - - -
Exxon Mobil to spend $14B on Hebron project off Newfoundland coast
[ http://www.ctvnews.ca/business/exxon-mo ... -1.1101076 ]
The Canadian Press Published Friday, January 4, 2013 12:24PM EST Last Updated Friday, January 4, 2013 3:42PM EST
ST. JOHN'S, N.L. -- Newfoundland and Labrador's waning offshore oil industry received a much-needed boost Friday as a consortium of partners led by ExxonMobil Canada Properties announced it has approved the Hebron offshore oil project.
The partners will spend $14 billion to develop the oilfield, which is estimated to contain more than 700 million barrels
- - - SNIP - - -
"The development of Hebron will result in an increase to offshore production, provincial royalties and provide tremendous opportunity for employment and businesses in the province," Natural Resources Minister Jerome Kennedy said in a statement.
The province expects to collect about $23 billion in royalties, returns on its investment and corporate income tax, he said.
"We are optimistic that the development of Hebron will lead to further offshore opportunities and additional developments in the future."
- - - SNIP - - -
"With production in decline right now from the three current production facilities, this project is coming at an important time," spokeswoman Jill Piccott said in an email.
"To ensure that Newfoundland and Labrador continues to see the major benefits from the offshore industry, increasing exploration and developing new projects is key."
MORE:
[ [ http://www.ctvnews.ca/business/exxon-mo ... -1.1101076 ]