Canada restarts West White Rose offshore oil project
CALGARY, June 1, 2022 – Cenovus Energy has agreed to restart the West White Rose oil project offshore Newfoundland and Labrador, Canada, the local integrated oil and gas company announced today.
The company plans to spend between USD 1.58 billion and USD 1.82 billion to start the project, including between USD 1.26 billion to USD 1.42 billion for completion of the West White Rose platform and between USD 316 million to USD 395 million for subsea drilling, completion works and life extension of the SeaRose FPSO.
First oil is expected in H1 2026. Production is expected to reach 80,000 bopd by the end of 2029.
Part of the deal involves Cenovus Energy decreasing its stake in the original field and satellite extensions and giving partner Nalcor a greater share. Cenovus Energy will decrease its share of both the West White Rose field and satellite extensions by 12.5% to 60% and 56.375% respectively.
The West White Rose project will add another 14 years of production to the field and is 65% complete.
The project was put on hold in March 2020 by former operator Husky Energy due to challenges brought on by low oil prices and the COVID-19 pandemic.
Cenovus Energy acquired Husky Energy in January 2021 for USD 3.08 billion.