Suncor Energy has announced a plan to extend the life of the Terra Nova FPSO has been reached.
According to a news release issued Wednesday night by the corporation, the lead operator of the offshore Newfoundland oilfield, the extension is expected to extend production life by approximately 10 years, providing an additional 70 million barrels of oil.
The deal also includes royalties and financial support from the provincial government, totalling up to $205 million.
The floating production, storage and offloading vessel has not produced oil since late 2019. Most of the more than 1,000 jobs linked to the oilfield have been lost.
The FPSO will undergo maintenance work at the Bull Arm Fabrication site starting in early September prior to sailing to dry dock in Spain later this year, according to the news release. A safe return to operations is expected before the end of 2022.
Since beginning production in January 2002, the Terra Nova has produced 425 million barrels of oil.
The agreement also includes the restructuring of project ownership between Suncor, Cenovus, and Murphy Oil. Suncor will control 48 per cent of the project, Cenovus will control 34 per cent, and Murphy Oil will control 18 per cent.
Alongside the announcement, Cenovus says it will be restructuring it's assets in the Terra Nova and White Rose projects. The corporation will reduce its working interest in the White Rose project, according to a news release, if a decision is made to restart the project.