Agreement in principle for resumption of Terra Nova operations

June 17, 2021
Suncor Energy and its co-owners of the Terra Nova FPSO and the Terra Nova field have an agreement in principle to restructure the project ownership.

Offshore staff

CALGARY, CanadaSuncor Energy and its co-owners of the Terra Nova FPSO and the Terra Nova field have an agreement in principle to restructure the project ownership. Operations are currently suspended with the vessel off-station.

The partners will also provide short-term funding toward continuing development of the asset life extension project, with a view to achieving sanction during the fall.

Some parties will increase their ownership though a consideration payable from the other owners. Operator Suncor’s ownership will increase from around 38% to 48%.

The agreement remains subject to board approvals and on previously disclosed royalty and financial support from the government of Newfoundland & Labrador.

Suncor President and CEO Mark Little said: “Over the past year, Suncor has worked diligently with all stakeholders to determine a path forward for Terra Nova.

“Despite numerous setbacks, Suncor, as operator, continued to persevere and explore options to achieve an economic return for our investors while protecting the employment of hundreds of Newfoundlanders and Labradorians.

“Although this agreement in principle is not a guarantee, it sets a path forward in the next few months to secure a return to operations for many years to come.”

Prior to completion of the restructuring, the Terra Nova co-owners are Suncor (operator, 37.675%), ExxonMobil (19%), Equinor (15%), Cenovus (13%), Murphy (10.475%), Mosbacher (3.85%), and Chevron (1%).

06/17/2021

Courtesy Cenovus Energy's "Development Plan Amendment Use of Stand-Alone Subsea Trees in the White Rose and North Amethyst Fields Volume 1 – Development Plan"