Suncor Energy, Together with Joint Venture Owners, Plan Restart of West White Rose Project

Source Press Release
Company Suncor Energy Inc.Cenovus Energy Inc. 
Tags Production/Development, Upstream Activities
Date May 31, 2022

Suncor (TSX: SU) (NYSE: SU) today announced that concurrent with the decision to restart the West White Rose project by the joint venture owners, Suncor has increased its ownership in the White Rose asset. In exchange for a cash payment of approximately $50 million from Cenovus to Suncor and in accordance with the conditional agreement announced on September 8, 2021, Suncor's interest in the White Rose asset increases from 27.5% to 40.0% and in the West White Rose project from 26.1% to 38.6%.

The decision to restart the West White Rose project is the result of a robust project evaluation which included the impact of a finalized agreement with the Government of Newfoundland and Labrador on a competitive royalty framework for the project. This amended royalty structure provides safeguards to the project's economics in periods of low commodity prices.

"This project is expected to extend the production life of the White Rose field, securing long-term value for shareholders and the people of Newfoundland and Labrador," says Shelley Powell, Senior Vice President of Exploration and Production, and In Situ. "The decision to restart the West White Rose project and increase our interest underscores Suncor's confidence in East Coast Canada's energy future, the importance of our offshore business within our integrated model and the positive role of Canadian oil and gas from a global energy security and ESG perspective."

Suncor will assume capital commitments on the 12.5% additional interest on a go-forward basis only. No significant capital spend is expected before 2023.

The White Rose asset joint venture owners are Cenovus (operator) and Suncor. The West White Rose Project joint venture owners are Cenovus (operator), Suncor and Nalcor.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd