Suncor Is Set To Save N.L. Oilfield

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Terra Nova FPSO, a massive floating production, storage and offloading vessel used in the oil and gas industry, was in a dire position since the N.L. oilfield had an uncertain future in front of it. Luckily for the vessel and its workers, it seems that Suncor may step in to remedy the situation.

Suncor Energy stated that it has reached an agreement to restructure the ownership of the oilfield. The company plans to refit the assets and possibly sanction a plan to restore production.

Suncor CEO Mark Little stated:

“Though “not a guarantee, [the agreement] sets a path forward in the next few months to secure a return to operations for many years to come.”

The union leader representing the workers, Dave Mercer, is very pleased with the news:

“We’re eager to work with Suncor. And we’re eager to go back to work and do what the Terra Nova was meant to do, and that was making money. For employees pay taxes, and try and help get this economy back.”

Minister of Energy Andrew Parsons said that the province will aid with $205 million from the oil industry recovery fund and some $300 million in royalty relief. He added:

“We are thrilled; very happy that the partnership was able to come together to make this work. To get this news today, it’s really a great boost to our province, to our industry, and to all those women and men; they’ve had a lot of tough months.”

Premier Andrew Furey also commented:

“Our government is, and continues to be, supportive of the province’s oil and gas industry and we are pleased on behalf of workers and their families that project owners have reached this interim equity solution and continue to work to secure this project for the next 10 years.”

Terra Nova FPSO, the floating production, storage and offloading vessel, has been inactive for two years, and more than 1,000 jobs linked to the oilfield have been lost.

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