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Jan 23, 2018

Husky replacing Atlantic leader after iceberg close-call leads to shutdown

Husky Energy

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CALGARY -- Husky Energy Inc. is appointing a new executive to head up its Atlantic operations following a close call with an iceberg that prompted the regulator to shut down its SeaRose FPSO vessel at the cost of 38,000 barrels per day of oil production.

The Calgary-based company confirmed that Trevor Pritchard has been promoted to senior vice-president, Atlantic region, from a role overseeing process and occupational safety and, before that, as general manager of operations in the Atlantic region.

Spokesman Mel Duvall wouldn't say what's happening with Pritchard's predecessor, Malcolm Maclean, but his name no longer appears on an online list of Husky managers.

Duvall says the company doesn't know how long the SeaRose will be out of commission, but it is continuing to meet with the Canada-Newfoundland and Labrador Offshore Petroleum Board, with more meetings later this week.

The board suspended the SeaRose last week based on preliminary results of an inquiry and said it would remain idle until the regulator is sure that "corrective and appropriate actions" have taken place.

It said the floating production, storage and off-loading vessel had 84 people and 340,000 barrels of crude onboard when it failed last March to follow protocol and sail away when an iceberg entered its 0.25-nautical-mile ice exclusion area, adding personnel at one point were instructed to muster and "brace for impact."

The suspension is costing Husky, which owns about 70 per cent of the offshore oil project, about 27,000 barrels per day of some of the most profitable production in its portfolio. That's about eight per cent of total oil and gas production from the company, which also operates in Western Canada and the Asia Pacific region.