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Commodity Pricing

Noia CEO Statement on the Terra Nova FPSO ALE Agreement in Principle

(St. John’s, NL – June 16, 2021) Below is a statement from Noia CEO Charlene Johnson on the announcement this evening that an agreement in principle has been reached for the Terra Nova Floating Production Storage and Offloading (FPSO) Asset Life Extension project.

“This announcement is long-awaited positive news for our offshore oil and gas industry, and indeed our province. The Terra Nova project has provided thousands of jobs, billions of dollars in royalties and revenue, and helped our supply and service sector grow its expertise in operating in a harsh weather environment. For Noia members involved in the supply and service sector and the thousands of people who rely on this project for their livelihood, this is extremely good news accompanied by immense relief.

“I commend Premier Furey, Minister Parsons, Suncor Energy and the project joint venture partners for staying at the negotiating table and remaining committed to this project and our offshore oil and gas industry. I would also like to thank Dave Mercer of Unifor Local 2121 for his tireless efforts on behalf of his members, this project, and our industry. Noia now encourages all parties involved in the process to reach a final agreement and restart the Terra Nova FPSO to ensure as much work as possible on the asset life extension project occurs in Newfoundland and Labrador. We have the people, facilities, and experience to do the work, and our industry, Noia members, and the province will greatly benefit from ensuring the Atlantic Accord principles of full and fair opportunity and principal beneficiary are adhered to as the project moves forward.

The Terra Nova field has produced approximately 425 million barrels of oil and we know the asset life extension project is 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 this project continuing to bring well-paying jobs and economic stimulus to Newfoundland and Labrador. We look forward to seeing the Terra Nova FPSO refitted and back where it rightfully belongs, offshore.”

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.