Header Menu: Top-Right


Commodity Pricing

Noia Comments on the Future of the Terra Nova Project

(St. John’s, NL – May 3, 2021) On Friday, Suncor Energy issued Expressions of Interest (EOI) related to the Terra Nova Floating, Production Storage and Offloading (FPSO) vessel located on the Terra Nova offshore field. Two EOIs prepare for decommissioning of the FPSO and the field and another provides an update to a previous EOI preparing for remediation of the FPSO to support the asset life extension project. Noia is deeply concerned about the potential to decommission and abandon the Terra Nova Project.

“Noia members and our Board of Directors are deeply concerned for the future of the Terra Nova Project and the far-reaching impacts decommissioning and abandonment would have upon our industry, the people who work in it, and our province. The Terra Nova Project employs about 900 people directly and thousands more when you consider the indirect and induced employment of those involved in the supply and service sector who lend their expertise in areas such as transportation, maintenance, environmental protection, health and safety, catering, and so much more. If this project does not continue, the impact on these people, their families, and the companies they work for, will be devastating.”
• Charlene Johnson, Noia CEO

On January 14, 2021, the Government of Newfoundland and Labrador announced a non-binding Memorandum of Understanding had been reached with the project owners. The province also committed up to $175 million on a matching contribution basis and possibly modifying the royalty regime should an agreement be reached. This commitment was based on an agreement for long-term production via the Terra Nova Project. Noia is requesting that all parties involved find a positive resolution as quickly as possible.

“I understand the deadline to reach a deal on the Terra Nova Project was extended to April 30 – which has now passed – and Noia is encouraging all parties to reach an agreement as quickly as possible. As it stands, we are perilously close to losing the 2021 season for maintenance and upgrades to the vessel, which in turn has a significant impact on Noia members in the coming years. Truthfully, I find it hard to even speak of decommissioning. With the potential of our offshore, including the potential for an additional 80 million barrels from the Terra Nova field, these are not conversations I expect or want to have. I hope we do not get to a point in the coming months where we are decommissioning the Terra Nova FPSO and I encourage all the partners to find a resolution in the best interest of our offshore oil and gas industry and our province. I am glad to see the parties are still at the table and this deal is not dead. In the end, I want to see Noia members pursuing EOIs related to the asset life extension project of the Terra Nova FPSO and the many spinoff opportunities associated with the project for years to come.”
• Charlene Johnson, Noia CEO

The Terra Nova field has produced approximately 425 million barrels of oil with the asset life extension project expected to capture another 80 million. Noia members look forward to being a part of the process to recover those additional barrels of oil and the project continuing to bring well-paying jobs and economic stimulus to Newfoundland and Labrador.

The Newfoundland and Labrador Oil and Gas Industries Association (Noia) was founded in 1977 to represent the supply and service sector of the offshore oil and gas industry. Today, Noia represents approximately 460 member organizations worldwide which are involved in, or benefit from, the oil and gas industry of Newfoundland and Labrador. Noia members are a diverse representation of businesses that range from offshore supply boats and helicopters, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.


Over the next 10 years, the estimated loss to Newfoundland and Labrador* due to deferment and loss of oil & gas exploration and development projects across the industry could be substantial:
• $11 billion in provincial revenues impacting programs, infrastructure, education, and health care throughout communities in Newfoundland and Labrador;
• ~$60 billion of total provincial GDP;
• 90,000 person-years of employment, resulting in significantly lower consumer spending in retail, restaurants, real estate, and other services.

*Source: Government of Newfoundland and Labrador

Terra Nova Project Facts*
Suncor Energy operates the Terra Nova field, which is located offshore approximately 350 kilometres southeast of Newfoundland and Labrador.

Discovered in 1984, the oil field was the second to be developed on the Grand Banks offshore Newfoundland. Production from the field began in 2002, using the Terra Nova Floating, Production Storage and Offloading (FPSO) vessel.

First development in North America to use FPSO technology in a harsh weather environment featuring sea ice and icebergs.

One of the largest FPSO vessels ever built, the Terra Nova is 292.2 metres long and 45.5 metres wide, approximately the size of three football fields laid end to end. From the keel to the helideck, it stands more than 18 stories high.

The Terra Nova FPSO can store 960,000 barrels of oil and accommodate up to 120 people while producing.

The Terra Nova FPSO was designed for the environment in which it operates. A double-hulled, ice-reinforced vessel, it has five thrusters (two forward and three aft) and a global dynamic positioning system, which is an automated system that allows the vessel to maintain its headings. The same system reduces the impact of waves by allowing the FPSO to change to more favourable headings in high winds and storms.

In May 2019, Suncor and the Terra Nova joint venture owners sanctioned plans to proceed with a project that will extend the life of the FPSO vessel to approximately 2031.

The asset life extension project is expected to allow the facility to capture approximately 80 million additional barrels of oil for the Terra Nova partnership. The asset life extension project was scheduled for 2020.

Terra Nova owners and their working interests
Suncor Energy 37.675% (operator)
ExxonMobil 19%
Equinor 15%
Husky Energy 13%
Murphy Oil 10.475%
Mosbacher Operating 3.85%
Chevron Canada 1%


* https://www.suncor.com/en-ca/about-us/exploration-and-production/east-coast-canada/terra-nova