Energy N.L. celebrates Bay du Nord, while critics question viability and promises

The head of Energy N.L. says formalizing the next step forward for the Bay du Nord offshore oil project has been years in the making, but criticism remains from opposition about what the deal entails — and the project's viability.

Charlene Johnson, Energy N.L.'s chief executive officer, was all smiles on Tuesday evening following the announcement of a formal benefits agreement between Newfoundland and Labrador, Equinor and BP.

The agreement could see more than $6 billion in direct revenue over a 25-year period, with first oil expected in 2031. The deal doesn't mean the final investment decision has been made.

"This has been eight years at Energy N.L., and that whole time it's been advocacy to have this project," Johnson told reporters.

"There's been a long time that we've been in a lull, and that all changed today."

Johnson said she believes the project can help shore up energy security for Canada, while bringing new jobs and boosts to the sector and the economy.

"We have a supply chain that has worked in the oil sector for decades. They're ready," she said.

Liberal energy critic Fred Hutton said he's pleased to see Bay du Nord taking a step forward, but added he's not sure if the PCs have lived up to their election promises.

The agreement includes a commitment to build at least 95 per cent of the subsea components in Newfoundland and Labrador, Premier Tony Wakeham said, including work on the topsides.

Speaking with reporters after his address, Wakeham said expressions of interest are already in place from Equinor, and Newfoundland and Labrador companies will be competing for those contracts.

Hutton called that a departure from Wakeham's previous commitment that all topside work would be done in the province.

"Now we're told that we get to bid on some of the topside work here. So we've signed an agreement, but we don't know if we're going to get what they committed to," Hutton told CBC News.

Hutton also questioned whether or not the final decision will be debated in the House of Assembly, as seen with the Churchill Falls MOU. He said there are unanswered questions and a lack of guarantees around construction.

The NDP also voiced concerns on Wednesday, particularly around what the party is calling a lack of transparency, and accusing the PC government of parading a benefits agreement rather than a final investment decision from Equinor.