May 31, 2022
Cenovus restarting West White Rose offshore project
By Noah Zivitz
Lorne Steinberg discusses Cenovus Energy
Managing Editor, BNN Bloomberg
Cenovus Energy Inc. announced early Tuesday it's going ahead with the restart of the West White Rose offshore project near Newfoundland and Labrador.
In a release, Cenovus said it expects production to resume in the first half of 2026; with a peak of 80,000 barrels per day expected by the end of 2029.
West White Rose's fate was thrown into doubt in March 2020 when its primary proponent, Husky Energy Inc., suspended construction activity due to COVID-19. Husky later said in September it was launching a full review of the scope, schedule and cost of the offshore project.
Cenovus inherited Husky's stake in the project when it acquired the company last year. In September 2021, Cenovus said it was working with Suncor Energy Inc. and other partners "to evaluate their options" for West White Rose.
“The joint venture owners have worked together to significantly de-risk this project over the past 16 months. As a result, we’re confident restarting West White Rose provides superior value for our shareholders compared with the option of abandonment and decommissioning," said Cenovus President and Chief Executive Officer Alex Pourbaix in a release.
Cenovus said it decided to restart West White Rose in part because of a new royalty structure with the Newfoundland and Labrador government.
"As we advance efforts to achieve net zero by 2050 and plan for a transition, we will foster an environment that supports our economy by embracing renewable energy while maximizing our low-carbon oil and gas advantage,” said Newfoundland and Labrador Premier Andrew Furey in a release Tuesday.