Canada’s offshore oil outlook brightens on Terra Nova, West White Rose developments
ST. JOHN’S, NEWFOUNDLAND - The co-owners of the Terra Nova FPSO facility announced an agreement was finalized to restructure the project ownership and proceed with the Asset Life Extension (ALE) project. It was also announced that Suncor Energy has entered into a conditional agreement to increase its interest in the White Rose project, subject to a decision on the West White Rose project.
“The commitments shown by Suncor Energy, Cenovus Energy, and Murphy Oil are extremely positive for the Newfoundland and Labrador offshore oil and gas industry. The Terra Nova FPSO once looked perilously close to never returning to production and now we will see work begin immediately here in the province, specifically at the Bull Arm Fabrication site, to ready the asset for a time in dry dock in Spain before returning offshore Newfoundland and Labrador by the end of next year. This means significant work for Noia members involved in the supply and service sector and significant employment for Newfoundlanders and Labradors now, and into the future,” said Charlene Johnson, Noia CEO.
As stated by Suncor, the Terra Nova ALE is expected to extend production life by approximately 10 years and produce an additional 70 million barrels of oil. With respect to the White Rose project, Cenovus is to complete a restart evaluation of West White Rose by mid next year. The project may recommence in earnest in 2023.
“I am far more optimistic about the future of the West White Rose project today than I was a few weeks ago. While much is left to do before work restarts on the Concrete Gravity Structure, we have a reason to look to the future and be ready to participate in the completion of that facility and its operation offshore. This has been a positive couple of days for the offshore oil and gas industry and I would like to thank Suncor Energy and Cenovus Energy, including the local management teams, for their commitment to seeing the projects continue. We look forward to continuing to work with them on these projects and the significant opportunities they bring for Noia members in the supply and service sector,” Johnson said.