Limited government aid for Canada’s offshore oil industry has left the 75,000 b/d West White Rose oil project on the Grand Banks of Newfoundland in mothballs, under review and liable to be canceled.

Natural Resources Minister Seamus O’Regan only took a first step by committing C$320 million ($240 million) earned by the federal government’s 8.5% ownership of the Hibernia oil platform, said West White Rose sponsor Husky Energy.

O’Regan’s pledge, made Friday in St. John’s, did not declare West White Rose to be the prime target for the offshore oil industry aid fund and left uses for the funds open to negotiation with the Newfoundland government.

“This agreement will allow the province to support workers through activities such as safety improvements, maintenance...