Suncor Reaches Deal to Extend Life of Terra Nova Project - VOCM

After months of uncertainty, Suncor has announced that it is moving ahead with the asset life extension for the Terra Nova project.

Suncor, and the co-owners of the Terra Nova FPSO have finalized the agreement to restructure the project ownership and sanction plans to extend the life of the project.

It’s a good night for our oil industry and a good night for NL as a whole! Terra Nova being sanctioned means 100’s of NL’ers start heading back to work tomorrow. Lots of hard work by the @IET_GovNL team & many others! @PremierofNL https://t.co/pZzQF9zWEH

— Andrew Parsons (@Andrew_Parsons1) September 8, 2021

Suncor, Cenovus and Murphy Oil now control 100 per cent of the project with changes to their ownership positions.

Suncor now owns 48 per cent of the project, up from 38 per cent, Cenovus owns 34 per cent, up from 13 per cent and Murphy Oil owns 18 per cent, up from 10 per cent.

Premier Andrew Furey says he’s pleased that the project owners have decided to sanction the Asset Life Extention, something he calls “great news for the hard-working families connected to it.”

I am very pleased the Terra Nova project owners decided to sanction the Asset Life Extension – great news for the hard-working families connected to it. With our federal partners, our governments committed over $500M in financial assistance to responsibly benefit our province. pic.twitter.com/IXorFhQplB

— Premier of NL (@PremierofNL) September 8, 2021

Future of West White Rose Uncertain

Meanwhile, while the news is good for Terra Nova, the future of West White Rose remains uncertain.

Cenovus issued a release yesterday indicating that it has entered into agreements with its partners in the Atlantic region to restructure its working interests in the Terra Nova and White Rose projects.

According to the company, those agreements will increase Cenovus’ working interest in Terra Nova and, if a decision is taken to restart West White Rose, reduce the company’s working interest in the White Rose field.

(Photo courtesy Trades NL.)

Cenovus President and CEO, Alex Pourbaix says while the company is still evaluating whether to proceed with West White Rose, the capital risk will be reduced if they decide to move forward.

Cenovus says as part of the restructuring, Cenovus and Suncor have entered into an agreement whereby it will decrease its working interest in the White Rose field and satellite extensions, while Suncor will take a larger stake, contingent on approval of the West White Rose project restarting.

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Suncor Reaches Deal to Extend Life of Terra Nova Project - VOCM
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