HALIFAX, Canada -- Nova Scotia, Canada plans to use about $50 million of its recent-estimated $870 million in Canadian government settlement funds to fund offshore E&P research, according to reports from Halifax.
The settlement is part of a deal to resolve the "Crown share dispute" from 1986, when Nova Scotia was promised compensation for giving up its ownership interest in offshore oil and gas resources, but never received the funds.
Under the deal, Ottawa will give Nova Scotia $234.4 million for past payments up to March 31, 2008. Future payments for the Sable and Deep Panuke offshore projects are estimated to be about $633 million. If future offshore projects occur, Nova Scotia will receive additional money.
More than 90% of the funds from the settlement are slated to go against the province's $12.4 billion debt. About $50 million of the total will be set aside for offshore energy research and university infrastructure, and $25 million will go to protect public land.