Canada’s Noia presses for deal on Terra Nova FPSO before June 15 deadline

5/27/2021

Terra Nova FPSO

Terra Nova FPSO

ST. JOHN’S, NEWFOUNDLAND, CANADA- During a recent call with investors, Suncor Energy CEO Mark Little commented on the future of the Terra Nova FPSO and efforts to confirm the Asset Life Extension project of the vessel. Mr. Little stated that a deadline to decide on the project has been set for June 15, 2021. Noia is encouraged that Mr. Little indicated Suncor would like to proceed with the project and implores the parties to find a resolution before the deadline.

“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. This project provides approximately 1,000 direct jobs and thousands more through the service and supply sector through the use of helicopters, supply vessels, environmental monitoring, catering, maintenance, health, safety and medical services, human resources and so much more. There are thousands more employed through spinoffs such as restaurants, accommodations like hotels and campgrounds, car and real estate sales, and struggling local businesses that will be greatly impacted, along with hundreds of organizations in the community and volunteer sectors,” said Noia CEO Charlene Johnson.

On January 14, 2021, the Government of Newfoundland and Labrador announced a non-binding Memorandum of Understanding had been reached with the project owners. The province also committed up to $175 million on a matching contribution basis and possibly modifying the royalty regime should an agreement be reached. This commitment was based on an agreement for long-term production via the Terra Nova Project. Noia is requesting that all parties involved find a positive resolution as quickly as possible.

“Every effort must be made to ensure we maximize resource recovery and value for our province. The Terra Nova field has produced approximately 425 million barrels of oil and we know the asset life extension project was expected to capture another 80 million. We should not strand those 80 million barrels. The project has provided billions of dollars in revenue to both the operating partners and the federal and provincial governments, and I do not believe anyone can simply walk away. In January, an MOU between the parties was announced and it seemed a deal was a strong possibility; we need to get back to that place. On behalf of the Noia members who rely upon the project, I implore all parties to find a positive resolution as soon as possible,” said Johnson.

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. Today, Noia represents approximately 460 member organizations worldwide which are involved in, or benefit from, the oil and gas industry of Newfoundland and Labrador. 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.

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