$25 million settlement reached on cancelled Anticosti oil project
Published Friday, August 11, 2017 2:35PM EDT
Quebec government has reached an agreement with Petrolia over a cancelled project on Anticosti Island.
The $25 million payout is the latest of a series of deals, now totaling over $66 million, with various companies who were to have roles in the scrapped plan to exploit oil and natural gas deposits.
The initial deal was struck by the Parti Quebecois in 2014 under then-premier Pauline Marois. At the time, the PQ had said oil exploration could bring in billions of dollars of revenue to the province.
The project was met with criticism by environmental groups and First Nations leaders.
Two weeks ago, the Couillard government formally ended the project, citing concerns over environmental risks and the project’s economic viability. Government officials also said any attempts to extract the natural resources would conflict with plans to try and get the island classified as a UNESCO World Heritage Site.
“Although we are very disappointed with this turn of events, as we are still convinced, even more so than in 2014, of the potential of the Anicosti, it’s now the time to turn the page,” said Petrolia CEO Martin Belanger in a statement.
Natural Resources Minister Pierre Arcand said the government is happy with the agreement and will continue to negotiate with TransAmerica, another company involved in the project.