ST. JOHN'S, N.L. — The Newfoundland and Labrador government is posting a near $200-million surplus for the past fiscal year -- the largest in the province's history.

The province had originally projected a $492-million deficit for the fiscal year ending March 31, 2006.

Finance Minister Loyola Sullivan says the $199.3-million surplus is the result of the renegotiated Atlantic Accord and improved offshore oil revenues.

The agreement with the federal government protects the province against equalization clawbacks on offshore royalties for at least the next six years.

"We're a long ways from being in a great position, but we're certainly a lot better than we ever were,'' Sullivan said Wednesday.

"It's not too many years you ever saw $200 million reduced on a debt. We've never seen it in our history.''

The province's net debt was $11.7 billion, a decrease of $203.6 million from the year before.