Page 8 - NorthAmOil Week 22 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Suncor, Cenovus restart West

White Rose offshore project

NEWFOUNDLAND CANADIAN producers Suncor Energy and West White Rose project from 26.1% to 38.6%.
AND LABRADOR Cenovus Energy have decided to restart develop- Suncor said in a statement that the adjust-
ment of the West White Rose project, an exten- ment in ownership shares had been made in
sion of the existing White Rose field. Work on exchange for a CAD50mn ($39.8mn) payment
West White Rose was suspended in March 2020 from Cenovus.
amid the onset of the coronavirus (COVID-19). Additionally, the two companies have
The project’s fate was subsequently uncertain amended their agreement with the province of
for some time, amid low oil prices and reduced Newfoundland and Labrador over how royalty
appetite for development of major new projects. payments from West White Rose would be struc-
Construction on In addition, Cenovus’ entry into the project tured. The amended royalty structure is aimed at
infrastructure for came via its acquisition of Husky Energy and the safeguarding the project’s economics in periods
West White Rose was company said it was weighing its options for the of low commodity prices.
suspended in 2020. project, leading to concerns that it might never West White Rose is now due to enter produc-
be revived. tion in the first half of 2026, with output antici-
However, market conditions have changed pated to peak at roughly 80,000 barrels per day
considerably since the early days of the pan- (bpd) by the end of 2029. It is anticipated to add
demic. West White Rose’s prospects were around 14 years of production to the White Rose
already thought to be improving in September field.
2021, when the two companies agreed on a pre- The project will use a fixed drilling plat-
liminary basis that Suncor’s stake in the project form consisting of a concrete gravity struc-
would increase. This adjustment has now been ture and integrated topsides facilities. Work
finalised, with Suncor’s interest in the White on West White Rose is estimated to be about
Rose asset raised from 27.5% to 40.0% and in the 65% complete.™

Union signs deal with Chevron to

end strike at California refinery

CALIFORNIA CHEVRON has reached a deal with striking among union members over the rising costs for
union workers at its Richmond, California refin- their share of healthcare. The Local 12-5 union
ery, ending a 10-week strike after workers voted had sought a 5% increase in pay on top of the
by a narrow margin on May 28 to ratify the latest pay hike in the national agreement in order to
contract offer. cover the difference. Chevron did not offer Local
About 500 workers represented by United 12-5 the pay rise before the strike and it was not
Steelworkers (USW) Local 12-5 union had included in the ratified contract.
begun the strike on March 21 in a dispute The union had also been seeking increased
demanding that pay match the increasing cost staffing to cut down on overtime.
of healthcare over the last few years in the San On May 13, the USW filed charges against
Francisco Bay area, where the refinery is located. Chevron, with the US National Labor Relations
As part of the agreement Chevron said the Board alleging that the super-major had changed
striking workers would return to work in the the terms of employment, engaged in coercive
coming weeks. Prior to reaching a tentative actions, including surveillance, and refused to
agreement on May 26 to end the strike and put negotiate with the union.
the new contract offer to a vote, at least 60 work- The 245,271 barrel per day (bpd) refinery was
ers had crossed the picket line and returned to kept in operation throughout the 10-week strike
work at the refinery. by managers, supervisors and workers who
The ratified contract contains the terms of crossed the picket line.
the national agreement reached between refin- The plant, which has more than 1,000
ery owners and USW International negotiators employees, has been refining oil for 120 years
in February, which includes a 12% pay hike over and produces about 20% of northern Califor-
four years. nia’s gasoline. The plant also produces diesel and
The strike began as frustration had mounted jet fuel.™

P8 www. NEWSBASE .com Week 22 02•June•2022