white rose oilfield development application - Husky Energy

3.1.2 Canada-Newfoundland Benefit CommitmentsUsing the principles of the Atlantic Accord as its foundation, Husky Oil’s Canada-Newfoundlandbenefits commitments can be summarized as follows:• Full and fair opportunity will be provided to Canadian and Newfoundland and Labrador businessesto participate on a competitive basis in supplying goods and services for the project.• Individuals resident in the province will be given first consideration for training and employmentopportunities with the development.• First consideration will be given to services provided from within the province and goodsmanufactured in the province, where competitive based on “best value”. “Best value” is defined as ablend of total cost, quality, technical suitability, delivery and continuity of supply and services, withtotal cost comprising initial purchase price plus operating and maintenance costs.• The White Rose oilfield development will be managed from St. John’s, Newfoundland.• Husky Oil will provide early identification of opportunities for the supply of goods and servicesrequired for the project, work with governments and industry organizations to jointly identifypotential Newfoundland and Labrador suppliers of such required goods and services, and providefeedback to unsuccessful suppliers, as appropriate.• Where bids are essentially equal on a “best value” basis, first choice will be given to goods andservices provided from Newfoundland and Labrador. In all bidding processes, the level and qualityof Newfoundland benefits, as well as technical and commercial considerations, shall be selectionfactors in awarding development contracts.• Qualified offshore fabrication and construction yards in Atlantic Canada, specifically Newfoundlandand Labrador, will be provided a full and fair opportunity to bid on work on a competitive basis,such that:− Husky Oil will undertake to cause, when competitive under international bidding on a “bestvalue”basis, the fabrication, assembly and outfitting services associated with the topsidesfacilities of the floating production facility, subsea facilities, mooring system and productionrisers to be performed in Canada; and− where Newfoundland fabrication/assembly/outfitting facilities exist and are qualified to becapable of undertaking the development activity, Husky Oil will require contractors to bid thework using a Newfoundland location in addition to bidding other locations.• Husky Oil will require the project management and system engineering work, to take placesubstantially in Newfoundland where competitive.• Husky Oil will require contractors and subcontractors to comply with the benefits principles,objectives and commitments.• Husky Oil supports and encourages technology transfer and research and development initiativesand, in association with its major contractors, will be developing comprehensive strategies for theseareas.White Rose DA Project Summary • January 2001 Page 38