CEO says Senovus will decide West White Rose ‘in the coming weeks’ Pi News

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A decision on whether to complete the West White Rose Oil project, which is stalled in Newfoundland and Labrador, will be made in the coming weeks, said the head and CEO of Senovas Energy.

During the company’s first quarter results conference call on Wednesday, Alex Pourbaix said the fate of the plan depends on whether it will bring meaningful increased value to Senovus shareholders, compared to the other option, which was eliminated and abandoned.

But he telegraphed where the Senovos leadership was tilting, saying, “In the last 16 months we have taken the time to significantly reduce the risk of this project,” which is now 65 percent complete.

Two years ago, work was halted

West White Rose is a $ 3.2 billion expansion project for the White Rose Offshore Oil Field, and will include a standardized Velhat site that will be integrated with existing Xerox FPSO.

The massive concrete gravity system, rising to a height of 145 meters, will be completed when the project-specific grave dockyard is built on the Gulf of Argentina, Placentia, while the main canopy blocks are being built in Texas. Many small blocks have already been built in Marystown.

The West White Rose Expansion Project will include a fixed-wellhead base, with an undersea bond with existing Xerox FPSO. (Husky Energy)

Work on the project was largely suspended until March 2020, after global epidemic oil markets were pushed back.

The West White Rose expansion will extend the life of the oil field by 14 years, with an additional 200 million barrels of oil available.

“If the decision is made to move forward, by the end of 2020, we estimate that the production net of the Senovas will rise to about 45,000 barrels per day by 2026,” Pourbaix said.

Cenovus acquired a 69 percent stake in West White Rose after acquiring Husky Energy in late 2020. Suncor, 26 percent of its shareholders, and Nalcor, a Newfoundland and Labrador’s energy company, 5 percent.

Senovas and Sankore are partners in the Terra Nova oil field, which has not produced oil since late 2019.

Pourbaix Terra Nova provided an update on FPSO, which is being refurbished in a dry-port in Spain.

The floating production, storage and dying vessel is scheduled to return to the Grand Banks by the end of 2022, adding that the Senovas upstream portfolio “adds about 10,000 barrels of production per day,” he said.

Xenos announced on Wednesday that it had invested $ 53 million in the first quarter of 2022 to protect the Terra Nova restoration and West White Rose project.

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