Sep 8 (Reuters) – Cenovus Energy Inc (CVE.TO) has reached agreements with its Atlantic region partners to restructure the company’s working interests in the Terra Nova and White Rose projects, the oil and gas producer said on Wednesday with.
The agreements would increase Cenovus’ work share in Terra Nova and decrease it in the White Rose field should the decision be made to restart West White Rose, the company said.
His working interest in Terra Nova will be 34% (up from 13%). The Company will receive $78 million from the departing partners for future commitments to decommission Terra Nova facilities.
Production at Terra Nova is expected to resume before the end of 2022, with gross production expected to reach approximately 29,000 barrels per day in 2024.
Cenovus would reduce its stake in White Rose from 72.5% to 60% and in the satellite expansions from 68.87% to 56.37%. The Company and its partners continue to evaluate their options for the West White Rose project. A decision should be made by mid-2022, it said.
Cenovus, one of Canada’s largest producers, said the company continues to make progress toward its $10 billion net debt target, which is expected to be reached later this year.
Separately, Suncor (SU.TO) said it had agreed to increase its stake in the offshore White Rose field by 12.5% from 27.5% in exchange for a cash payment from Cenovus.
Reporting by Sahil Shaw in Bengaluru; Edited by Shailesh Kuber
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