Page 4 - NorthAmOil Week 36 2021

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