In addition, Cenovus and Suncor have entered into a conditional agreement under which Suncor will increase its interest in the White Rose asset subject to a restart decision for the West White Rose project and Cenovus will reduce the Company`s interest in the White Rose field. The Agreement is subject to the final terms and approval of all parties, including, where applicable, the approval of the Board of Directors, and is subject to royalties and financial support previously disclosed by the Government of Newfoundland and Labrador. Further details will be announced after the agreements are concluded. In addition, Calgary-based Suncor said in a statement that the agreement is conditional on royalties and financial support previously disclosed by the Government of Newfoundland and Labrador. Terra Nova`s partners have already reached an agreement in principle in June 2021 on the restructuring of the project property and the provision of short-term financing for the further development of the Asset Life Extension project. The agreement was subject to the final terms and consent of all parties. In fact, the agreement is always subject to the final terms and consent of all parties. This includes, where appropriate, the approval of the Board of Directors. In principle, this agreement will be used to restructure the ownership of the project and provide short-term funds for the further development of the asset life extension project. As a result, Suncor Energy will increase its interest in the Terra Nova Offshore Oil Project following a preliminary agreement.

This agreement with the Government of Newfoundland and Labrador could save the aging project and extend its life, the Financial Post said. Prime Minister Andrew Furey noted that the deal is not finalized until it has been signed by all partners, but he hopes to see a formal sanction of the Terra Nova FPSO conversion by the end of August. Furey said details of who will do the work have not been worked out. But it depends on the partnership agreements and commitments of the governments of Newfoundland and Labrador in the form of $205 million from the Federal Petroleum Restoration Fund and $300 million in royalties. Canadian oil and gas company Suncor Energy said it had reached an agreement for the Terra Nova FPSO (and the oil field of the same name), which docked on the coast of Newfoundland last year after Covid-19 prevented planned dry docking in Spain. Therefore, Mr. Wenig acknowledged that “although this agreement is in principle not a guarantee; there is indeed a way forward in the coming months to ensure a return to operations for many years to come. Mark Little, Suncor`s President and Chief Executive Officer, said: “The decision to advance the Terra Nova project is a concrete example of Suncor`s commitment to investing in projects that deliver strong economic returns and long-term value to investors. This agreement also ensures the security of the more than 1,000 direct and indirect local jobs that support the project. In addition, the agreement aims to move to a sanctions decision in the autumn. It should be noted that thanks to the agreement, a subset of the owners will increase the ownership of their project. In fact, this step will represent a consideration to be paid by the other owners.

CALGARY, Canada – Suncor Energy and its co-owners of the Terra Nova FPSO and Terra Nova Field have reached an agreement in principle to restructure the project`s property. Operations are currently suspended with the vessel outside the station. The company says the agreement to renew operations at the Terra Nova field — which has not seen production in nearly two years — includes royalties and financial support from the provincial government that could amount to up to $205 million, all on a matching contribution basis to support local onshore and offshore work related to the project. As a result, the Newfoundland and Labrador Oil and Gas Industries Association (NOIA) called the preliminary agreement a “huge relief.” The agreement also includes the restructuring of the project property between Suncor, Cenovus and Murphy Oil. Suncor will control 48% of the project, Cenovus 34% and Murphy Oil 18%. The deal is good news as the project was at risk of being stopped – the FPSO has been offline since 2019 and requires significant upgrades to extend the life of the project. In 2019, the co-owners approved plans to continue a project to extend the life of the FPSO vessel until approximately 2031, but the expansion project was cancelled due to COVID-19. On Wednesday, Canadian integrated energy company Suncor announced that it has reached an agreement with the co-owners of the terra Nova floating plant, generation, storage and offloading (FPSO) and the associated Terra Nova field.

The announcement follows a restructuring of the project`s ownership, with Suncor, Cenovus and Murphy Oil now controlling 100% of the project, with Suncor holding 48% (vs. approximately 38%), Cenovus owning 34% (vs. 13%) and Murphy Oil owning 18% (up from approximately 10%). Suncor also announced that it has entered into a conditional agreement to increase its interest in the White Rose project, subject to a restart decision for the West White Rose project. In a separate press release, Suncor said cenovus, the operator, will complete a restart evaluation of the West White Rose project by mid-2022 as part of the conditional agreement. According to the statement, further details will be provided when the agreements are finalized. On the 16th. In June, the co-owners of the terra Nova Floating Production, Storage and Offloading Facility (FPSO) and associated Terra Nova Offshore Field entered into an agreement in principle to restructure the project property and provide short-term financing for the further development of the asset life extension project, with the intention of moving to a final decision to sanction the project in the fall. The Government of Newfoundland and Labrador provided approximately $300 million in royalty adjustments to support the project and provided the project with $205 million of the previously announced $320 million federal fund for the offshore oil and gas industry. The agreement is subject to the final terms and approval of all parties and is subject to financial support from the provincial government.

The new ownership structure has not yet been announced, although Suncor Energy, the project operator, has announced that it will increase its stake in the project from 38% to 48%. “This agreement also ensures the safety of more than 1,000 direct and indirect local jobs that support the project,” said Mark Little, Suncor`s President and CEO, in the press release. “We appreciate the deep cooperation and support of the provincial and federal governments, which have been instrumental in achieving this important milestone.” “While this agreement is not a guarantee, it sets a path in the coming months to ensure a return to operations for many years to come,” said Mark Little, Suncor`s President and CEO. Suncor estimates that approximately 80 million barrels of oil remain in the Terra Nova field. Under the terms of the deal, Cenovus would reduce its stake in the initial range of 72.5% to 60% and from 68.875% in satellite extensions to 56.375%. Cenovus and its partners continue to evaluate their options for the West White Rose project, with a decision to be made by mid-2022. .