terra nova fpso life extension

The Rigzone Social Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy. Canadian energy company Suncor and its partners in the Terra Nova FPSO and field located off Canada have finalized the agreement to restructure the project ownership and move forward with the Asset Life Extension Project. Forward-looking statements in this news release include statements and expectations regarding the Terra Nova FPSO facility and Asset Life Extension Project, including the expectation that the Asset Life Extension Project will extend production life by approximately 10 years, providing an additional 70 million barrels of resource for the partnership and provide many benefits to the Newfoundland and Labrador and Canadian economies in the form of taxes, royalties and employment, expectations regarding the maintenance work to be completed on the FPSO and that the FPSO will have a safe return to operations before the end of 2022, and the belief that this agreement will provide certainty for the 1,000 plus local direct and indirect jobs that support the project and similar statements. The agreement was subject to finalized terms and approval from all parties. He can be reached at, April 3, 2023 Blake Wright Major milestone tucked away with submission of development plan for UK North Sea gas project, Sustainable Marine drops Nova Scotia tidal energy project, Canadian project ditches LNG for hydrogen production. Police in Grand Falls-Windsor Searching for Escaped Prisoner, Canadian Artist, TALK, Added to Churchill Park Music Festival Lineup, Police Catch Shoplifter Red-Handed in Mount Pearl, Metro Police Nab Driver With Canada-Wide Suspension, Government Employee Had Second Full-Time Job While Working from Home, OceanGate Ceases All Commercial, Exploration Operations. 709-729-5777, 631-8155 The Terra Nova FPSO arrived at the state-owned shipyard a year ago, has undergone an extensive life extension overhaul, and is scheduled to return to Canadian waters by the end of this. In May 2019, Suncor and the Terra Nova joint venture owners sanctioned plans to proceed with a project that would extend the life of the FPSO vessel to approximately 2031. Suncors EOIs seek proposals from companies who could do wellbore abandonment for the 30 wells tied to the Terra Nova FPSO, 11 other exploration and delineation wells, and carry out decommissioning of the vessel. Following an agreement in principle for a restructuring of the project ownership to provide funding for the Terra Nova life extension, the project was sanctioned in September 2021. pic.twitter.com/IXorFhQplB, Premier of NL (@PremierofNL) September 8, 2021. Jan 6, 2022 | 9:30 AM. Terra Nova FPSO; Source: Suncor. Suncors actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them. Prior to completion of the restructuring, the Terra Nova co-owners were Suncor (operator, 37.675 per cent), ExxonMobil (19 per cent), Equinor (15 per cent), Cenovus (13 per cent), Murphy (10.475 per cent), Mosbacher (3.85 per cent), and Chevron (1 per cent). The Terra Nova FPSO and the crew are expected back in home waters by the end of 2022 when the FPSO is scheduled to be back in production. Suncor Energy is preparing for all contingencies when in comes to the fate of the Terra Nova FPSO. Warning: It seems JavaScript is either disabled or not supported by your browser. Jupia Consultants Inc. was founded in 2004. If you are looking for articles published before 2016, visit the 2023 Endeavor Business Media, LLC. The operator recently issued Expressions of Interest (EOI) related to the FPSO, including two that prepare for decommissioning of the vessel and the field, while another provides an update to a previous EOI preparing for remediation of the FPSO to support the asset life-extension project. Cenovus says as part of the restructuring, Cenovus and Suncor have entered into an agreement whereby it will decrease its working interest in the White Rose field and satellite extensions, while Suncor will take a larger stake, contingent on approval of the West White Rose project restarting. (St. John's, NL - June 11, 2021) With the Suncor Energy deadline of June 15, 2021 quickly approaching for a decision on the asset life extension (ALE) project or abandonment of the Terra Nova FPSO, Noia has undertaken an analysis of the financial benefits of the Terra Nova project. Two divers exit the diving bell and swim to the equipment to do maintenance work and complex tasks on the equipment that attaches to the FPSO from the floor of the Atlantic Ocean. Version 9 of RETScreen Clean Energy Management Software. All Right Reserved. Canadian energy company Suncor has revealed that the Terra Nova life extension project is making progress with expectations for the subsea campaign to be completed by the end of this month and the FPSO to come back to Canada before the end of the year. It hasnt been smooth sailing for the project in recent years. The economic impact report for the Terra Nova project can be found here. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Government funding support and equity restructuring help the Terra Nova project move forward until final decision this fall. The firm specializes in economic impact assessments, assets mapping, community marketing and sector development strategies. Suncor expects production to resume early 2023. The province also committed up to $175 million on a matching contribution basis and possibly modifying the royalty regime should an agreement be reached. Discovered in 1984, the field was the second to be developed on the Grand Banks offshore Newfoundland. Alex Pourbaix, Cenovus President & Chief Executive Officer, said: While we are still evaluating whether to proceed with West White Rose, the capital risk in our portfolio will be reduced if we decide to move forward. According to Suncor, the agreement also includes the royalty and financial support from the Government of Newfoundland and Labrador; thus, including up to $205 million to support local onshore and offshore work related to the Asset Life Extension Project. I understand the deadline to reach a deal on the Terra Nova Project was extended to April 30which has now passedand NOIA is encouraging all parties to reach an agreement as quickly as possible.. Newfoundland and Labradors offshore projects are producing some of the lowest emissions per barrel globally, and with energy demand increasing, the province has significant potential to grow its industry, says Paul Barnes, director, Atlantic Canada and Offshore, Canadian Association of Petroleum Producers. Daily news and in-depth stories in your inbox, Canadian FPSO still on track to come back online next year, Canadian oil & gas player facing charges over FPSO incident, $12-billion mega Bay du Nord oil project put on the back burner for three years, Experienced master for Aramco/Adnoc projects, Canadian FPSO on track to return to home waters before year-end, Terra Nova partners sanction life extension project, Canadian oil & gas player runs into cyber security incident. In total, the project has the potential to support over 1,700 jobs and $138 million in wages during the asset life extension project stage and almost 3,400 jobs and $139 million in wages annually during its ten years of operation in Newfoundland and Labrador. Canadian energy company Suncor has revealed that the Terra Nova life extension project is making progress with expectations for the subsea campaign to be completed by the end of this month and the FPSO to come back to Canada before the end of the year. Partners include ExxonMobil at 19%; Equinor at 15%; Husky Energy (Cenovus) at 13%; Murphy Oil at 10.475%; Mosbacher Operating at 3.85%; and Chevron Canada at 1%. Suncor has announced that the co-owners of the Terra Nova Floating, Production, Storage and Offloading (FPSO) facility, and associated Terra Nova field, have finalized an agreement to restructure the project ownership and move forward with an asset life extension development. In an update earlier this week, Suncor said the co-owners of the Terra Nova FPSO and associated Terra Nova field, had reached an agreement in principle to restructure the project ownership and provide short-term funding towards continuing the development of the Asset Life Extension Project, with the intent to move to a sanction decision in the . The economic impact report by Jupia Consultants uses Statistics Canada data, as well as data available from Budget 2021 such as $64 USD per barrel oil price and an average royalty equivalent to $11 per barrel, and an assumed $350 million capital investment into the asset life extension project in Newfoundland and Labrador. As we get into the final hours available for the parties involved to find a resolution that puts the Terra Nova FPSO back into production, the financial impacts of this project must be considered. 'industry_sector' : 'Upstream', The Terra Nova floating production, storage and offloading (FPSO) vessel is located offshore approximately 350 kilometres southeast of Newfoundland and Labrador in a region known as the Grand Banks. Suncor says that one of the largest replacement tasks taking place under the sea is upgrading the nine mooring legs that anchor the ship to the underwater drilling system. The vessel is 292.2 meters . Its a good night for our oil industry and a good night for NL as a whole! The asset life extension project will extend the life of the Terra Nova FPSO by 10 years to 2031 and demonstrates Suncor's commitment to our offshore oil and gas industry. Bay du Nord oil projects court saga draws to a close but will there be an encore? Nearly 1,000 jobs were linked to the field at the end of 2019, which is the last time oil was produced by the Terra Nova FPSO, an aging floating production, storage and offloading vessel that. Take our 15-question Canadas Atlantic offshore oil and natural gas industry quiz to find out. Terra Nova FPSO; Source: Suncor For more information about Suncor, visit our web site at suncor.com, follow us on Twitter @Suncor, Media inquiries: 1-833-296-4570 media@suncor.com, Investor inquiries: 800-558-9071 invest@suncor.com. It began production in 2002. Per the announcement, the companies also said the FPSO will undergo maintenance work at the Bull Arm Fabrication site starting early September. Since 2019 the vessel has been off-field undergoing a life extension programme, initially at Bull Arm Fabrication Site, then Navantia, El Ferrol. In September 2021, the co-owners of the Terra Nova floating, production, storage and offloading (FPSO) facility and associated Terra Nova Field finalized an agreement to restructure project ownership and move forward with extending the life of this project. The Terra Nova FPSO can store 960,000 barrels of oil. Suncor is listed on the UN Global Compact 100 stock index. Today, Suncor announced that the co-owners of the Terra Nova Floating, Production, Storage, and Offloading (FPSO) facility and associated Terra Nova Field have finalized the agreement to restructure the project ownership. This content is available after accepting the cookies. , 2003-2023 Society of Petroleum Engineers, KBR Scoops Bay du Nord FPSO Topsides FEED, Equinors $12-Billion Bay du Nord Project Gets Regulatory Green Light, Terra Nova Field May Live To Produce Again, Pembina Purchases a Half Stake in Cedar LNG, British Columbia Implements Mandatory Shutdown Timelines for Dormant Oil and Gas Sites. In 2019, the co-owners sanctioned plans to proceed with a project to extend the FPSO vessels life to approximately 2031 but the extension project was canceled due to COVID-19. The new ownership structure has yet to be announced though Suncor Energy, the projects operator, announced it will increase its equity position in the project from 38 to 48 per cent. Terra Nova being sanctioned means 100s of NLers start heading back to work tomorrow. Minister of Natural Resources, This is a major milestone for Suncors east coast operations and the community. The Newfoundland and Labrador Oil and Gas Industries Association (Noia) was founded in 1977 to represent the supply and service sector of the offshore oil and gas industry. There have been eight new entrants in the past three years, and $3.9 billion in recent exploration work commitments. Context: Energy Examined aims to provide an engaging insiders perspective for the public. 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On June 16, the co-owners of the Terra Nova floating production, storage and offloading (FPSO) facility and associated Terra Nova offshore field reached an agreement in principle to restructure project ownership and provide short-term funding to continue development of the Asset Life Extension Project, with the intent to move to a final project sanction decision in the fall. News release Suncor Energy confident in East Coast Canada energy future: moves forward with Terra Nova Asset Life Extension https://t.co/UJ0AFU67Jd, In this sense, Mark Little, Suncor president, and chief executive officer, commented; The decision to move forward with the Terra Nova project is a concrete example of Suncors commitment to invest in projects that have strong economic returns., Similarly, Little noted that this type of project could provide long-term value for investors. Tucked away in saturation chambers that maintain air pressure that coincides with 100 metres below the oceans surface, divers on the dive support vessel (DSV), the Seven Falcon, wait until their next six-hour shift. The FPSO was recently moved from its offshore location to the Conception Bay at St. John's - Map Credit: VesselsValue. Canadian energy company Suncor and its partners in the Terra Nova FPSO and field located off Canada have finalized the agreement to restructure the project ownership and move forward with the Asset Life Extension Project. 'author' : 'Andreas Exarheas', Accordingly, they will now move forward with the Asset Life Extension Project. March 2023 The Trilemma and a Liquified Natural Gas (LNG) Energy Unlocking the Potential of Geothermal Energy: A Path to Clean Power and Sustainable Solutions, Energizing the Future: DOEs New Initiative to Decarbonize Transportation and Industrial Sectors, BPs Argos Platform: The Future of Deepwater Oil Production, TotalEnergies Expands in Suriname: A Step Forward in Energy Development, $26 Million for Clean Energy Grid Projects: A Step Toward a Sustainable Future. The move has the Newfoundland and Labrador Oil & Gas Industries Association (NOIA) concerned about the future of the vessel and the field. "Noia understands the business requirements of Suncor Energy to set a deadline for a decision on the Asset Life Extension Program of the Terra Nova FPSO and we remain hopeful that an agreement will be reached prior to June 15. The proposed Terra Nova Asset Life Extension is expected to extend the production life of Terra Nova by approximately 10 years and provide nearly 80 million barrels of additional oil resource. The agreement is subject to finalized terms and approval from all parties, and is contingent upon the provincial governments financial support. The asset life extension project is expected to allow the facility to capture approximately 80 million additional barrels of oil for the Terra Nova partnership. This agreement also provides certainty for the 1,000 plus local direct and indirect jobs that support the project., Lastly, Suncor CEO concluded; We appreciate the deep collaboration and support from the provincial and federal governments; which has been crucial to helping us reach this important milestone., Your Neme (required) Copies of these documents are available without charge from Suncor at 150 6th Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email request to invest@suncor.com or by referring to the companys profile on SEDAR at sedar.com or EDGAR at sec.gov. July 9, 2023 - Do you think the price of groceries will return to pre-pandemic levels. | Source: This is designed to extend the life of the field and its FPSO, 350 km (217 mi) southeast of Newfoundland, by around a decade until 2031, and is due to be executed in 2020. The decision to move forward with the Terra Nova project is a concrete example of Suncors commitment to invest in projects that have strong economic returns and will provide long-term value for investors, Mark Little, Suncors president and chief executive officer, said in a company statement. The biggest component of the ALE project is the work being done to the ship in Spain, but we also have divers working underwater 350 kilometres offshore of Newfoundland and Labrador, said Kirk Goobie, GM Operations, Life Extension Project. 'longevity' : 'News', Cenovus President and CEO, Alex Pourbaix says while the company is still evaluating whether to proceed with West White Rose, the capital risk will be reduced if they decide to move forward. Jose Tremblay Each day, a trio of divers exit their pressurized chambers, where they are constantly monitored by a support team that includes medical staff, and climb into another chamber, called a diving bell, that lowers them to the ocean floor. Five more years at Canadian firms oil field lay in store for Thai FPSO, Probe into incident with potential for fatality at ExxonMobils Hebron platform underway, Controversial Bay du Nord oil project awaits outcome of court challenge, Wrtsil lands FPSO operation and maintenance job off Brazil, World Energy GH2 acquires Port of Stephenville, With preventive maintenance mode turned off, Brazilian FPSO back online. Mark Little, Suncor president and chief executive officer, said: The decision to move forward with the Terra Nova project is a concrete example of Suncors commitment to invest in projects that have strong economic returns and will provide long-term value for investors. Honourable Siobhan Coady With our federal partners, our governments committed over $500M in financial assistance to responsibly benefit our province. The co-owners of the Terra Nova FPSO facility, and associated Terra Nova field, have finalized an agreement to restructure the project ownership and move forward with an asset life extension project. One of the largest FPSO vessels ever built, the Terra Nova is 292.2 metres long and 45.5 metres wide, approximately the size of three football fields laid end to end. Cenovus added it continues to progress swiftly towards its $10 billion net debt target, which it expects to achieve later this year. This past December Suncor's Terra Nova Floating Production Storage and Offloading (FPSO) vessel and crew safely arrived in Ferrol, Spain after a 15 day, 2,000 nautical mile trip across the North Atlantic. Today Energy NL represents over 460 member organizations worldwide which are involved in, or benefit from, the energy industry of Newfoundland and Labrador. Meanwhile, back home off the shores of Newfoundland and Labrador, crews are busy upgrading equipment on the sea floor. In December 2019, the Canada-Newfoundland and Labrador Offshore Petroleum Board issued an order to suspend production-related operations on the FPSO after finding Suncor noncompliant with required safety inspections. contract extension was executed during the period January 01, 2022 to March 31, 2022. . It is critical that Newfoundland and Labrador and Canada move immediately to implement key recommendations outlined in the Oil and Gas Recovery Task Force report with a vision of improving industry competitiveness. The report includes recommendations to governments, regulators and industry for concrete actions to drive the offshore industrys recovery. Although this agreement 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, comments Suncor president and CEO Mark Little. Suncor estimates about 80 million barrels of oil remain in the Terra Nova field. On the other hand, should the project economics be robust enough to lead to a restart decision, Suncor has agreed to increase its interest in the White Rose offshore field by 12.5 per cent (from 27.5 per cent to approximately 40 per cent) in exchange for a cash payment by Cenovus to Suncor. The asset life extension project will support the goals outlined in Advance 2030: The Way Forward on Oil and Gas, which was developed to position Newfoundland and Labrador as a globally-preferred location for oil and gas development.

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