Suncor Energy confident in East Coast Canada energy future: moves forward with Terra Nova Asset Life Extension
08 September 2021 - 11:15PM
Suncor today announced that the co-owners of the Terra Nova
Floating, Production, Storage and Offloading (FPSO) facility and
associated Terra Nova Field (“Terra Nova”) have finalized the
agreement to restructure the project ownership and move forward
with the Asset Life Extension Project. Suncor, Cenovus and Murphy
Oil, now control 100% of the project with the following increased
ownership positions: Suncor – 48% (previously approximately 38%);
Cenovus – 34% (previously 13%); and Murphy Oil – 18% (previously
approximately 10%).
The agreement also includes the previously
disclosed royalty and financial support from the Government of
Newfoundland and Labrador including up to $205 million, on a
matching contribution basis, to support local onshore and offshore
work related to the Asset Life Extension Project.
The Asset Life Extension Project is expected to
extend production life by approximately 10 years, providing an
additional 70 million barrels of resource for the partnership and
providing many benefits to the Newfoundland and Labrador and
Canadian economies in the form of taxes, royalties and employment.
The FPSO will undergo maintenance work at the Bull Arm Fabrication
site starting early September prior to sailing to dry dock in
Ferrol, Spain later this year with a safe return to operations
anticipated before the end of 2022.
“The decision to move forward with the Terra Nova
project is a concrete example of Suncor’s commitment to invest in
projects that have strong economic returns and will provide
long-term value for investors. This agreement also provides
certainty for the 1,000 plus local direct and indirect jobs that
support the project,” said Mark Little, Suncor president and chief
executive officer. “We appreciate the deep collaboration and
support from the provincial and federal governments, which has been
crucial to helping us reach this important milestone.”
Suncor’s 2021 guidance remains unchanged.
Legal Advisory – Forward-Looking
Information
This news release contains certain forward-looking
information and forward-looking statements (collectively referred
to herein as “forward-looking statements”) within the meaning of
applicable Canadian and U.S. securities laws. Forward-looking
statements in this news release include statements and expectations
regarding the Terra Nova FPSO facility and Asset Life Extension
Project, including the expectation that the Asset Life Extension
Project will extend production life by approximately 10 years,
providing an additional 70 million barrels of resource for the
partnership and provide many benefits to the Newfoundland and
Labrador and Canadian economies in the form of taxes, royalties and
employment, expectations regarding the maintenance work to be
completed on the FPSO and that the FPSO will have a safe return to
operations before the end of 2022, and the belief that this
agreement will provide certainty for the 1,000 plus local direct
and indirect jobs that support the project and similar statements.
Forward-looking statements are based on Suncor’s current
expectations, estimates, projections and assumptions that were made
by the company in light of its information available at the time
the statement was made and consider Suncor’s experience and its
perception of historical trends, including expectations and
assumptions concerning: the accuracy of reserves estimates; the
current and potential adverse impacts of the COVID-19 pandemic,
including the status of the pandemic and future waves and any
associated policies around current business restrictions,
shelter-in-place orders or gatherings of individuals; commodity
prices and interest and foreign exchange rates; the performance of
assets and equipment; capital efficiencies and cost savings;
applicable laws and government policies; future production rates;
the sufficiency of budgeted capital expenditures in carrying out
planned activities; the availability and cost of labour, services
and infrastructure; the satisfaction by third parties of their
obligations to Suncor; the development and execution of projects;
and the receipt, in a timely manner, of regulatory and third-party
approvals.
Forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties,
some that are similar to other oil and gas companies and some that
are unique to Suncor. Suncor’s actual results may differ materially
from those expressed or implied by its forward-looking statements,
so readers are cautioned not to place undue reliance on them.
Suncor’s Management's Discussion and Analysis for
the second quarter of 2021 dated July 28, 2021, its Annual
Information Form and Annual Report to Shareholders, each dated
February 24, 2021, Form 40-F dated February 25, 2021, and other
documents Suncor files from time to time with securities regulatory
authorities describe the risks, uncertainties, material assumptions
and other factors that could influence actual results and such
factors are incorporated herein by reference. Copies of these
documents are available without charge from Suncor at 150 6th
Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071,
or by email request to invest@suncor.com or by referring to the
company’s profile on SEDAR at sedar.com or EDGAR at sec.gov. Except
as required by applicable securities laws, Suncor disclaims any
intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Suncor Energy is Canada's leading
integrated energy company, with a global team of over 30,000
people. Suncor's operations include oil sands development,
production and upgrading, offshore oil and gas, petroleum refining
in Canada and the US, and our national Petro-Canada retail
distribution network (now including our Electric Highway network of
fast-charging EV stations). A member of Dow Jones Sustainability
indexes, FTSE4Good and CDP, Suncor is responsibly developing
petroleum resources, while profitably growing a renewable energy
portfolio and advancing the transition to a low-emissions future.
Suncor is listed on the UN Global Compact 100 stock index. Suncor's
common shares (symbol: SU) are listed on the Toronto and New York
stock exchanges.
For more information about Suncor, visit our web
site at suncor.com, follow us on Twitter @Suncor
Media inquiries: 1-833-296-4570
media@suncor.com
Investor inquiries: 800-558-9071
invest@suncor.com
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