Terra Nova FPSO hitting the open water, on its way back to production
The Terra Nova floating production, storage and offloading vessel has been offline since 2019, with delays in its repair schedule. (Andrew Vaughan/The Canadian Press)
The long-delayed return of the Terra Nova floating production, storage and offloading unit is over, with the vessel beginning its journey back to sea on the weekend, according to Newfoundland and Labrador Premier Andrew Furey.
Furey made the announcement on social media on Sunday
"I focused on responsibly getting the Terra Nova FPSO back out to sea — and today, I am proud to say it finally is," Furey wrote.
The oil production vessel has sat stagnant since 2019, plagued with prolonged and delayed repairs.
Suncor, the largest partner in the vessel, pulled the rig from the offshore oil field to undergo $500 million in repairs. A downturn in oil prices delayed those repairs, until Suncor, Cenovus and Murphy Oil took ownership in 2021.
The provincial government also earmarked $205 million in subsidies at the time, much of which came from the federal government's assistance fund for the oil and gas industry.
The target to get the vessel back into production was by the end of 2022. The FPSO returned to Newfoundland in February and had been sitting in Bull Arm until now.
Sunday's announcement may have been a bit of surprise to some, because in May, Suncor removed the Terra Nova from its 2023 plans.
At the time, Suncor told investors during a quarterly update that the vessel needed more maintenance before it was considered safe to return to oil production in Newfoundland's offshore.
The company also said there wouldn't be an update until midway through 2023.
"Based on this and looking forward to the remainder of the year, we are removing any expected production from Terra Nova from our 2023 [exploration and production] guidance," said Suncor vice-president Kris Smith at the time.
The FPSO employed 570 Newfoundlanders and Labradorians while out of production, according to a Suncor report from the third quarter of 2022.
An estimated 80 million barrels of oil remains in the Terra Nova oil field.
