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. Canadian Association of Petroleum Producers, Front-line workers help Suncor win safety award, Newfoundland and Labrador Offshore: Big numbers, big potential, Offshore Oil and Gas: The next generation is here, Value of the NL offshore oil and gas industry. Daily news and in-depth stories in your inbox, The companies awarded by MEA get the opportunity to work closely together with a transnational team of Marine Energy experts on both the technical advancement of their technology, as well as the development of their commercial strategy and business plans. Lets save the Terra Nova FPSO and work on building back a dynamic and prosperous industry. Version 9 of RETScreen Clean Energy Management Software. 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. 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. Suncor Energy is Canada's leading integrated energy company, with a global team of over 30,000 people. , 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. Since 2019 the vessel has been off-field undergoing a life extension programme, initially at Bull Arm Fabrication Site, then Navantia, El Ferrol. 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. The storage capacity of the Terra Nova FPSO is 960,000 barrels of oil with accommodations for up to 120 personnel while producing. Today Energy NL represents over 460 member organizations worldwide which are involved in, or benefit from, the energy industry of Newfoundland and Labrador. ISSN: 1944-978X (Online)ISSN: 0149-2136 (Print), Blake Wright has been a journalist covering the upstream oil and gas industry for more than 25 years. 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. Suncors 2021 guidance remains unchanged. 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. Honourable Siobhan Coady [email protected], Terra Nova FPSO Life to be Extended by 10 Years. Jan 6, 2022 | 9:30 AM. Claims of Oil and Gas Underinvestment Are Overblown, SLB Bags 5-Year Digital Deal with Petrobras, More Energy Organizations Back Mental Health Charter, Brent Would Likely Be Well Above $74-76 Band Were It Not for This Factor, Jericho's Proved Developed Reserves Up 32 Percent in Value. Suncor restructuring Terra Nova ownership to secure life extension Terra Nova FPSO refit nears completion | Offshore Six months later, a fire broke out onboard the vessel but was extinguished. The agreement is subject to finalized terms and approval from all parties, and is contingent upon the provincial governments financial support. Suncor's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the US, and our national Petro-Canada retail distribution network (now including our Electric Highway network of fast-charging EV stations). 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 month . In fact, the three co-owners expect the Asset Life Extension to extend production life by approximately ten years. 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. This page and all contents are copyright, Government of Newfoundland and Labrador, all rights reserved. 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. Terra Nova Asset Life Extension Moves Forward - In September of 2021, Suncor, along with other Terra Nova owners, completed the partnership restructuring . According to Suncor documents, the FPSO could be decommissioned later this year, and subsea abandonment work, which would require a drilling rig and various marine support vessels, could begin in the fall of 2022. Based in Houston, his areas of special focus include emerging oilfield technologies and field development trends. 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. August 16, 2022 A deep dive into the Terra Nova upgrades It's hard to fathom something as long as three football fields laid end-to-end, with the capacity to store nearly a million barrels of oil, can gracefully float across an ocean. Noia Comments on the Future of the Terra Nova Project 100 New Gower Street, Cabot Place, Suite 902, St. Johns, Newfoundland & Labrador, Canada, A1C 6K3 To contact the author, [email protected]. July 9, 2023 - Do you think the price of groceries will return to pre-pandemic levels. Suncor Energy confident in East Coast Canada energy future: - GlobeNewswire | Source: 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. 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. Alex Pourbaix, Cenovus president and chief executive officer, said, sanctioning the Terra Nova asset life extension provides a superior value proposition for our shareholders compared with the alternative of abandoning and decommissioning the project. In a separate statement on Wednesday, Cenovus said it would receive $78 million from the exiting partners as a contribution towards future Terra Nova asset retirement obligations. Cenovus and its partners continue to evaluate their options on the West White Rose Project, with a decision to be made by mid-2022. 'company' : '', According to this weeks update from Suncor, the external hull work is done and the FPSO has been moved from the shipyards drydock to the quayside to complete the remaining work. On Wednesday, the three energy companies said they will refurbish a massive floating production, storage and offloading (FPSO) vessel that is 18 storeys tall and three football fields long for. What will happen if we no longer have a competitive oil and gas industry? The Terra Nova field has produced approximately 425 million barrels of oil with the asset life-extension project expected to capture another 80 million. 709-729-5777, 631-8155 The Terra Nova FPSO can store 960,000 barrels of oil. The FPSO will undergo maintenance work at the Bull Arm Fabrication site starting early September prior to sailing to dry dock in Ferrol, Spain later this year with a safe return to operations anticipated before the end of 2022. Discovered in 1984, the field was the second to be developed on the Grand Banks offshore Newfoundland. 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) No injuries were reported. Truthfully, I find it hard to even speak of decommissioning, added Johnson. Suncor East Coast wins gold in the oil and gas category of Canadas Safest Employers awards. Canadian FPSO leaves dry dock in Spain | Upstream Online CALGARY, Alberta, Sept. 08, 2021 (GLOBE NEWSWIRE) -- Suncor today announced that the co-owners of the Terra Nova Floating, Production, Storage and Offloading (FPSO) facility and associated Terra Nova Field (Terra Nova) have finalized the agreement to restructure the project ownership and move forward with the Asset Life Extension Project. Accordingly, they will now move forward with the Asset Life Extension Project. It is estimated the extension will allow the Terra Nova FPSO to produce an additional 80 million barrels of oil. The field was discovered in 1984 and production began in 2002. Canadian FPSO on track to return to home waters before year-end The FPSO was recently moved from its offshore location to the Conception Bay at St. John's - Map Credit: VesselsValue. Does Canada have an energy competitiveness crisis? Terra Nova gets 10-year extension | Offshore 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. Suncor Energy Inc. All financial figures are in Canadian dollars. Shell sells upstream assets in Egypt for $646 A Big Promise, a Big Polluter: Tesla Stops PSE&G executes agreement to lower transmission rates. Bay du Nord oil projects court saga draws to a close but will there be an encore? In fact, these activities will be implemented prior to sailing to the dry dock in Ferrol, Spain, later this year. The subsea work is expected to be complete by mid-August. 'author' : 'Andreas Exarheas', Further, under the base case scenario of $11/barrel for royalties, the provincial and municipal governments would receive a total of $1.49B over 10 years, including $880M in royalties, $120M in corporate income taxes, and $485M in other taxes. Jose Tremblay 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. Suncor expects production to resume early 2023. Suncor Moves Terra Nova FPSO to Conception Bay - Offshore Engineer Magazine , June 24, 2019 Burnet, Duckworth, and Palmer Each service offer is intended to put the companys technology and business firmly on the [], Canadian FPSO still on track to come back online next year, Canadian oil & gas player facing charges over FPSO incident, LNG-powered Silver Nova wraps up sea trials, Experienced master for Aramco/Adnoc projects, Terra Nova partners sanction life extension project, Suncor restructuring Terra Nova ownership to secure life extension funding, Equinor buying Suncors UK assets for $850 million, Canadian oil & gas player runs into cyber security incident, Following lifetime extension, Canadian field gets oil resources upgrade, Woodside sanctions $7.2 billion deepwater oil project. 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. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as forward-looking statements) within the meaning of applicable Canadian and U.S. securities laws. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Suncor had previously announced that the Terra Nova asset life extension project aims to prolong the life of the FPSO by about a decade to 2031 and produce an additional 80 million barrels. 'company_sentiment' : 'Positive', Accordingly, they will now move forward with the Asset Life Extension Project. 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. Following maintenance work in late 2021, the FPSO in December 2021 sailed away from the coast of Newfoundland and Labrador to Ferrol, Spain where it has been for eight months. Jupia Consultants Inc. was founded in 2004. CALGARY, Canada - Suncor Energy has sanctioned the Terra Nova asset life extension project offshore eastern Canada. 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. 'content_type' : 'About the Industry', The project is expected to require $500-$600 million in capital investment, of which $350 million will be spent in From the keel to the helideck, it stands more than 18 storeys high. Tel: 709-758-6610, Independent Analysis Shows Substantive Economic Impact of Terra Nova Project, Petroleum Industry Human Resources Committee. Terra Nova being sanctioned means 100s of NLers start heading back to work tomorrow. This project provides approximately 1,000 direct jobs and thousands more through the service and supply sector . For months, the FPSO has been moored dockside at the Bull Arm fabrication site in Trinity Bay as Suncor and its field partners struggle to find the best path forward for the project. The Provincial Government will work to ensure that people in this province continue to receive the maximum benefit from this project. We appreciate the deep collaboration and support from the provincial and federal governments, which has been crucial to helping us reach this important milestone.. Content is edited by CAPP Communications; questions on editorial content may be referred to [emailprotected]. 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. Suncor estimates about 80 million barrels of oil remain in the Terra Nova field. The . Terra Nova is a Floating Production Storage and Offloading Vessel ( FPSO) for servicing the Terra Nova oil and gas field. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges. Terra Nova is operated by Suncor Energy, which holds a 37.675% interest in the project. The FPSO has arrived at Navantia's dry dock in El Ferrol, Galicia after a four-week voyage across the Atlantic Ocean from the Bull Arm . CALGARY, Canada Work is progressing on the Terra Nova FPSO's asset life extension program, according to operator Suncor Energy, and the vessel should return to the field location offshore Newfoundland and Labrador before year-end 2022. He can be reached at, April 3, 2023 Blake Wright However, oil and gas has not flowed from the field in over a year. 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. The economic impact report for the Terra Nova project can be found here. This content is available after accepting the cookies. What do you think? Suncor Energy's ageing Terra Nova floating production, storage and offloading vessel has arrived in Spain for vital upgrade and repair work that will keep her stationed offshore Canada for 10 more years. If sanctioned, the asset extension project will preserve jobs, continue to provide revenues for government through royalties and taxes, and supply responsibly produced energy to the world. Terra Nova FPSO; Source: Suncor Charlene Johnson, Noia CEO. Minister of Natural Resources, This is a major milestone for Suncors east coast operations and the community. 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 . Terra Nova FPSO - Wikipedia 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. "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. Suncor to sanction $500m Terra Nova extension project offshore Canada Suncor now owns 48 per cent of the project, up from 38 per cent, Cenovus owns 34 per cent, up from 13 per cent and Murphy Oil owns 18 per cent, up from 10 per cent. In May 2019, Suncor and the Terra Nova joint venture owners sanctioned plans to proceed with a project that will extend the life of the FPSO vessel to approximately 2031. Suncor Energy has announced a plan to extend the life of the Terra Nova FPSO has been reached. This agreement also provides certainty for the 1,000 plus local direct and indirect jobs that support the project We appreciate the deep collaboration and support from the provincial and federal governments, which has been crucial to helping us reach this important milestone, he added. 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. If you are looking for articles published before 2016, visit the CALGARY, Canada Work is progressing on the Terra Nova FPSOs asset life extension program, according to operator Suncor Energy, and the vessel should return to the field location offshore Newfoundland and Labrador before year-end 2022. On 14 January 2021, the Government of Newfoundland and Labrador announced a nonbinding Memorandum of Understanding had been reached with Suncor and the other project owners in order to strengthen the economics of extending the life of the project. archive. The storage capacity of the Terra Nova FPSO is 960,000 barrels of oil with . Wed love to hear from you, join the conversation on the Last September, Suncor . There have been eight new entrants in the past three years, and $3.9 billion in recent exploration work commitments. Per the announcement, the companies also said the FPSO will undergo maintenance work at the Bull Arm Fabrication site starting early September. Terra Nova partners sanction life extension project PDF Terra Nova Development Canada-Newfoundland and Labrador Benefits Public Before it departed Newfoundland, additional maintenance work was completed at the Bull Arm fabrication site. 'published_date' : '2021-09-09', After months of uncertainty, Suncor has announced that it is moving ahead with the asset life extension for the Terra Nova project. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is responsibly developing petroleum resources, while profitably growing a renewable energy portfolio and advancing the transition to a low-emissions future. 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. Take our 15-question Canadas Atlantic offshore oil and natural gas industry quiz to find out. 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. Discover the vessel's particulars, including capacity, machinery, photos and ownership. Suncor, and the co-owners of the Terra Nova FPSO have finalized the agreement to restructure the project ownership and sanction plans to extend the life of the project. 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. Terra Nova FPSO arrives in Spain for vital upgrade work PDF Terra Nova Development - Sustainability at Suncor 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. Suncor, Cenovus and Murphy Oil now control 100 percent of the project, with Suncor holding a 48 percent stake, previously approximately 38 percent, Cenovus holding a 34 percent interest, previously 13 percent, and Murphy Oil holding the remaining 18 percent interest, previously approximately 10 percent. Work to extend the life of the FPSO will begin in 2020. Its a good night for our oil industry and a good night for NL as a whole! The other co-owners are Cenovus and Murphy Oil, who, joint with Suncor, will now control 100% of the project. The Terra Nova FPSO has arrived in Spain as part of work to extend the vessel's life by another decade. Noia Implores Parties to Reach a Deal on Terra Nova FPSO - EnergyNow Together with the employment this project brings employment with above average wages the skills and expertise in the industry that will be retained, and the message it will send the global industry, we believe there is an overwhelming business case to be made for all parties, including operators and the Government of Newfoundland and Labrador, to make this deal happen. As part of the project, the FPSO will undergo maintenance work at the Bull Arm Fabrication site starting early September prior to sailing to dry dock in Ferrol, Spain, later this year with a return to operations anticipated before the end of 2022. Suncor is the operator and its partners are Cenovus and Murphy Oil. @PremierofNL https://t.co/pZzQF9zWEH, Andrew Parsons (@Andrew_Parsons1) September 8, 2021. The vessel and its crew arrived in the country on Tuesday. , April 11, 2022 Blake Wright Suncor Energy's Terra Nova floating production, storage and offloading vessel has left a dry dock in Spain, where it is being upgraded ahead of returning later this year to its eponymous. PowerUpstreamMidstreamDownstream. The Terra Nova field is located offshore approximately 350 kilometres southeast of Newfoundland and Labrador. We understand it has already provided billions of dollars in revenue and taxes to the Government of Newfoundland and Labrador and our economic impact report demonstrates that a billion dollars more remains available. Noia members are a diverse representation of businesses that range from offshore supply boats and helicopters, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies. This agreement also provides certainty for the 1,000 plus local direct and indirect jobs that support the project. The FPSO will undergo maintenance work at the Bull Arm Fabrication site starting early September prior to sailing to dry dock in Ferrol, Spain later this year with a safe return to operations anticipated before the end of 2022. Government funding support and equity restructuring help the Terra Nova project move forward until final decision this fall. It is encouraging the life of the Terra Nova FPSO will be extended. Suncor aims for early 2023 production restart for Terra Nova FPSO Context: Energy Examined aims to provide an engaging insiders perspective for the public. Rigzone Social Network. The Terra Nova field is located offshore approximately 217 miles southeast of Newfoundland and Labrador. Suncor Reaches Deal to Extend Life of Terra Nova Project Quotes , June 18, 2021 Blake Wright An offshore oil project that teetered on the verge of collapse not long ago is about to take a major step toward resuming production when the Terra Nova FPSO sets sail for a Spanish dockyard, likely this week. March 2023 The Trilemma and a Liquified, February 2023 Worlds power grid: the urge, January 2023 The ESGs impact around the, December 2022 The most recent horizons for, Unlocking the Potential of Geothermal Energy: A Path, Energizing the Future: DOEs New Initiative to Decarbonize, $26 Million for Clean Energy Grid Projects: A, TotalEnergies Secures Approval for 3 GW Solar Projects, TotalEnergies proposes an ordinary dividend for fiscal year, AIC Global Holdings Inc hires Dr. Stephen Bushby, Transparent Energy deepens renewable energy leadership and capabilities, Biden-Harris Administration announced earmarked for Infrastructure Investment and, Hawaiian Electric selects seven solar and storage projects. In 2021, Suncor and the Terra Nova joint venture owners finalized an agreement to move forward with the Asset Life Extension Project which is expected to extend production life by approximately 10 years, and produce an additional 70 million barrels of oil for the partnership. Natural Resources Meanwhile, back home off the shores of Newfoundland and Labrador, crews are busy upgrading equipment on the sea floor. This agreement also provides certainty for the 1,000 plus local direct and indirect jobs that support the project, said Mark Little, Suncor president and chief executive officer. Reports recommend recovery actions for NLs offshore industry, CAPP releases energy platform document for Newfoundland and Labrador, Offshore emissions reduction research gets major funding. Suncor, Partners Reach Tentative Deal on Future Path for Terra Nova FPSO Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor, and the co-owners of the Terra Nova FPSO have finalized the agreement to restructure the project ownership and sanction plans to extend the life of the project.