2006/04/12

Danny Williams takes on the oil companies

Danny takes on the oil companies and the giants take on Danny. Who will prevail?Has Danny bitten off more than he can chew this time? On the other hand, why should these corporate giants be allowed to hang on to NL resources in perpetuity?

Following the brakdown in talks between the province and the petroleum consortium, apparently Chevron Canada Ltd. is moving at top speed to dismantle its stalled Hebron offshore oil project. The company said it and its three partners have no intention of reopening talks with Newfoundland any time soon, even as the province moves quickly to give itself the legal tools needed to expropriate holdings in Hebron and get the project back in development. Months of negotiations over Hebron broke down this month, prompting Chevron to announce last week that it would suspend the project and disband the team of workers assembled to propel it.

Premier Danny Williams has said he believes Irving, Tex.-based Exxon Mobil Corp., the largest Hebron partner, is responsible for the impasse -- the companies say it was a unanimous decision -- and has vowed to force a sale of its stake if necessary. Trade experts warned that any move to expropriate could cost billions, and would virtually guarantee a mammoth lawsuit from Exxon under NAFTA.

1 comment:

Newfie said...

Way to go, Danny Boy! Those giant oil companies are making so much money they don't know what to do with it.Why shouldn't NL get a better return on its resources?