The Terra Nova FPSO could be on its way back to the oilfields offshore tomorrow.
After an extensive and expensive refit, the floating platform will reconnect to the “spider buoys” but it’s not known when production will resume.
The shareholders in the project have written off 2023 in terms of production.
(Photo courtesy Suncor Energy Inc.)
Industry consultant Rob Strong estimates that the refit cost $500 million—$205 million of which was from Ottawa with the Government of Newfoundland and Labrador allowing an extra $300 million in royalty relief.
Strong would have done things differently in terms of subsidies.
Just a year after the FPSO went down, Suncor announced a profit of $21 billion, so why we didn’t have a clause in there requiring them to pay back some of the money once they started making money is beyond me,” says Strong.
