A significant announcement was made in the town of Placentia on Thursday, as the Newfoundland and Labrador government signed a new deal with Husky Energy to develop an extension to the White Rose oil field.

The company has agreed to build a new wellhead platform in Argentia for the project. 

The project is contingent on more approvals from the province and its oil partners. If approved, the platform will include a concrete structure and topsides.

Once it begins pumping oil, the platform will be tied back to the existing SeaRose production vessel. It is expected to deliver an estimated 115 million barrels of oil.

Crowd in Star Hall, Placentia for announcement of White Rose Extension project

A large crowd gathered at the Star Hall in Placentia for Thursday's announcement. (CBC)

To enable construction of the concrete gravity structure, a graving dock with gates will be built by the Argentia Management Authority at its facilities. 

The White Rose Extension project is expected to deliver more than $3 billion to the province in the form of royalties, equity and corporate income taxes.

The Star Hall in Placentia was full on Thursday, as area residents came to hear the official announcement. 

Husky expects about 250 new jobs once the platform is up and running, and the workforce in Argentia could hit 500 at peak of construction. The company warns that the numbers are open to fluctuation.

The White Rose oilfield is located on the northeastern Grand Banks, approximately 350 kilometres east of St. John's.