Suncor Energy has brought the Terra Nova floating, production, storage and offloading (FPSO) vessel back into production, with plans to ramp up production in the coming few months.
The FPSO restarted production after the completion of the Terra Nova asset life extension project, located offshore Newfoundland and Labrador province, Canada.
The vessel has undergone several repairs at a port in Ferrol, northwestern Spain, for an extended operational life through 2031.
Suncor president and CEO Rich Kruger said: “Focusing on safety and operational integrity, we have brought this key offshore project online, providing additional cash flow for our shareholders as well as many benefits to the Newfoundland and Labrador and Canadian economies.
“We appreciate the collaboration and support from the provincial and federal governments regarding this project.”
Terra Nova is an oil field located around 350km southeast of St. John’s, the capital city of Newfoundland and Labrador province.
Suncor owns a 48% stake in the field, while Canadian integrated oil and natural gas company Cenovus owns a 34% stake, and US-based Murphy Oil owns the remaining 18% stake.
In 2021, Suncor and its Terra Nova joint venture partners agreed to extend the production life of the Terra Nova oil field by about 10 years.
The Terra Nova asset life extension project progressed several months behind the schedule, due to delayed overhaul works on the FPSO and cost overruns.
The FPSO was anticipated to return to Canada in the fourth quarter of last year, but it did not arrive until August this year.
Recently, Suncor completed its previously announced acquisition of TotalEnergies EP Canada for a total of C$1.47bn (around $1.1bn).
The acquisition included its remaining 31.23% working interest in the Fort Hills oil sands asset and associated midstream commitments.
With the closing, Suncor has become the sole owner of the Fort Hills Project, located in Alberta’s Athabasca region, 90km north of Fort McMurray.
