Confidence growing in Placentia area after White Rose project sanction

Tucked neatly away on the north side of the Port of Argentia is a 50-acre site that could hold the key to Placentia's long-term economic future.

Fenced off, with 24-hour security, it's key feature is barely visible from a distance, but it cost an estimated $100 million to construct.

It's a purpose-built graving dock, or to put it more simply, a sophisticated hole in the ground, about 15 metres below Placentia Bay's low tide mark.

The site is where Husky Energy and its partners will construct a unique new concrete gravity structure over the next four years. It's the base for the new $2.2-billion West White Rose extension oil project, and it's set to transform and dramatically bolster the area's up-and-down economy.

No more uncertainty

It's a major coup for the Port of Argentia, the body that overseas this sprawling and strategically located former U.S. naval station.

"It certainly is the beginning for us. We believe we have a very bright future here," said Chris Newhook, acting chief executive officer with the Port of Argentia.

The graving dock has been sitting idle since it was completed nearly two years, it's future uncertain after Husky deferred the White Rose project in 2014 because of plummeting oil prices.

But any uncertainty was put to rest on Monday when Husky and its partners officially sanctioned construction of the fixed wellhead platform, with Argentia playing a critical part in the project.

A temporary landmark

The concrete gravity structure will rise to about 140 metres in the coming years, becoming a temporary landmark at the port.

It's the biggest injection into the economy of the community since the Yanks came.- Bill Hogan

At peak construction, about 800 people will be working at the site, generating significant economic benefits for the region.

Housing, retail, restaurants and more.

All will flourish over the next four years, at least.

"It's the biggest injection into the economy of the community since the Yanks came," longtime political leader and entrepreneur Bill Hogan said Tuesday.

"We don't get many megaprojects knocking," added Newhook. "So we are really happy to play host to this one."

Newhook said the project will allow the port authority to showcase Argentia and its potential to the world.

"This is a site that the Americans identified many years ago as a tremendous asset for naval activity. Now we're converting it to heavy industry activity and marine activity. And we see with us being able to demonstrate a successful outcome from this major project, the opportunity for others to see that potential and be able to use it in the future."

That could come in the form of one or two more wellhead platforms, with Husky already announcing it has discovered more oil in the White Rose field.

• A double win for Husky: Company sanctions West White Rose and announces new discovery

There's also potential for other projects.

"It's going to bring a pile of people and a pile of money into the community," said Hogan.