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NorthAmOil                                    COMMENTARY                                          NorthAmOil




       Suncor moves boost outlook





       for Eastern Canada’s offshore







       Suncor Energy has announced two separate moves relating to the Terra Nova

       and West White Rose projects, bolstering the prospects for Eastern Canadian

       offshore production



        EASTERN          TWO separate announcements from Suncor  would extend the field’s production life by
        CANADA           Energy this week have contributed to optimism  around 10 years, providing an additional 70mn
                         over additions to Eastern Canadian offshore oil  barrels of oil, according to Suncor.
       WHAT:             production.                           The move follows a tentative deal reached in
       Eastern Canada’s    On September 8, Suncor released two state-  June among the project partners at the time –
       offshore production   ments on offshore Eastern Canadian assets in  Suncor, Cenovus, Murphy Oil, ExxonMobil,
       prospects look brighter.  which it is a partner, whose future has recently  Equinor, Mosbacher and Chevron. That deal
                         been subject to considerable uncertainty. The  has now been finalised, with the asset’s owner-
       WHY:              company said that it had agreed, alongside its  ship consolidated among Suncor, Cenovus and
       Suncor has agreed to   partners in the Terra Nova field and floating  Murphy, while the other companies have exited
       extend the life of the   storage, production and offloading (FPSO) unit,  the project.
       Terra Nova FPSO and has   to restructure the project’s ownership and move   As a result, operator Suncor’s stake in Terra
       agreed to increase its   forward with the Asset Life Extension project  Nova has risen from 38% to 48%, while Ceno-
       stake in the White Rose   there.                       vus’ interest has increased from 13% to 34% and
       project if the West White   Separately, the company said it had entered  Murphy’s has grown from 10% to 18%.
       Rose expansion restarts.  into a conditional agreement with Cenovus   The FPSO will undergo maintenance work at
                         Energy to increase its interest in the White Rose  the Bull Arm fabrication site in Newfoundland
       WHAT NEXT:        asset subject to a restart decision on the West  and Labrador from early September prior to
       A decision on West White   White Rose expansion project.  sailing to dry dock in Ferrol, Spain later in 2021.
       Rose is now expected by   The moves point to the fact that Canadian  It is then anticipated to return to operations
       mid-2022.         companies – and Suncor in particular – are  before the end of 2022.
                         willing to pursue new offshore investment once   “The decision to move forward with the
                         more. For the largely mature Eastern Canadian  Terra Nova project is a concrete example of
                         offshore, this comes as good news, and if other  Suncor’s commitment to invest in projects that
                         operators follow then new greenfield develop-  have strong economic returns and will provide
                         ments in the region may yet be a possibility.  long-term value for investors,” stated Suncor’s
                                                              president and CEO, Mark Little. “We appreci-
                         Life extension                       ate the deep collaboration and support from the
                         The Terra Nova Asset Life Extension project  provincial and federal governments, which has






















                                                                                                  The Terra Nova FPSO


       P4                                       www. NEWSBASE .com                      Week 36   09•September•2021
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