5/21/2023 0 Comments Terra nova golf packages"This is a project that was on life support. Premier Andrew Furey has described the support for Terra Nova as "prudent and responsible" use of the oil and gas fund money. "We needed to come to an agreement with all of the owners of the asset, as well as as the support from the oil and gas recovery fund," Tremblay said. Tremblay said a full picture of the new ownership structure will be revealed when the various companies formally agree to the revised structure.Īsked if the outcome would have been different without government help, Tremblay described the cash and royalty relief as a "key pillar" in the effort to save Terra Nova. Government support 'key pillar' for Terra Nova deal Suncor has said its ownership will increase from 38 to 48 per cent, and that some of the other owners were increasing their ownership of the project for consideration payable from the rest.ĬBC has previously confirmed that ExxonMobil (19 per cent), Equinor (15 per cent), Mosbacher (3.85 per cent) and Chevron (one per cent) were looking to leave the Terra Nova partnership. The Terra Nova sits docked at Bull Arm, Trinity Bay, in a picture taken earlier this month. The deal to revive the Terra Nova includes a new ownership structure, with as many as four of the seven original oil companies exiting the project and the remaining partners increasing their ownership stakes. When asked whether job numbers will return to historic levels, Tremblay said, "We're absolutely looking forward to continuing to have the same involvement that we had with all our employees." However, that number had dropped to 445 people by March 31 this year. Last week's agreement ended months of uncertainty about the fate of the Terra Nova, which has not produced oil since late 2019 after the offshore regulator ordered a shutdown because of safety concerns.Īccording to quarterly benefits agreement reports filed by Suncor, there were 1,125 people working on the Terra Nova development as of March 31, 2019. Tremblay would not say how much work will be carried out at Bull Arm, the value of that work, or how many jobs it might create. Those details are being finalized, she said. Once the Bull Arm work is complete, Tremblay said, the Terra Nova will sail to a drydock in Spain this winter to complete the refit. "We really look forward to working with the community here and the local contracting community to ensure that we … execute the work efficiently here in the next few months." This undated photo was taken before the Terra Nova left the Grand Banks last year. She said engineering packages are being developed in anticipation of the awarding of contracts, with work to commence this fall once final sanction is approved by the owners. And we look forward to working with all the contracting community here to support that work," Tremblay said. Terra Nova's owners have reached an agreement to continue the project.Tremblay said some of the refit work for the Terra Nova will take place at the Bull Arm fabrication facility in Trinity Bay, where the aging vessel has been dockside for months with only a skeleton crew aboard. Once that occurs, the Terra Nova is expected to produce another 80 million barrels of oil over the next decade, and sustain hundreds of jobs connected to an oilfield that began production in 2002. Tremblay said the goal is to return a modernized and upgraded Terra Nova floating production, storage and offloading vessel to the Grand Banks in the fall of 2022, and connect to subsea infrastructure that will have also undergone an upgrade by then. "We had many, many long days, but we're happy to be where we are today," she said. It was welcome news for a team that has been working hard for over a year, said Tremblay. The Terra Nova began producing oil in Newfoundland's offshore in January 2002. The Terra Nova floating production, storage and offloading vessel is seen here moored dockside at the Bull Arm fabrication site in Trinity Bay.
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