Suncor ordered to suspend Terra Nova operations offshore eastern Canada

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has ordered Suncor Energy to suspend production-related operations on the Terra Nova floating production, storage, and offloading vessel (FPSO).

The FPSO, which can store 960,000 bbl of oil, operates on the Terra Nova oil field about 350 km (217 mi) southeast of Newfoundland.

The C-NLOPB’s chief safety officer (CSO) determined that Suncor is not compliant with regulatory requirements under Atlantic Accord Implementation Acts to maintain and comprehensively inspect equipment critical in the safe operation of the installation, to ensure repairs are carried out in a timely manner, and to ensure that mitigation measures are effective in minimizing hazards.

Specifically, CSO found those requirements have not been met with respect to availability of redundant fire water pump systems.

The suspension will continue until Suncor has addressed this matter to the satisfaction of the CSO.

In May 2019, Suncor (37.675%) and the other Terra Nova joint venture owners (ExxonMobil, 19%; Equinor, 15%; Husky Energy, 13%; Murphy Oil, 10.475%; Mosbacher Operating, 3.85%; and Chevron Canada, 1%) sanctioned plans to proceed with a project that will extend the life of the FPSO, installed in 2002, to about 2031. The asset life extension project, scheduled to take place in 2020, is expected to allow for production of about 80 million bbl of additional oil. The life extension project will take place in 2020.