While Suncor decides his fate, Terra Nova FPSO will be tied up to Bull Arm

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Suncor Energy has confirmed that the floating production, storage and offloading vessel Terra Nova will be docked at Bull Arm’s manufacturing facility in Trinity Bay while the company decides its fate.The Calgary-based company has signed a contract with DF Barnes – the operating company Bull Arm – that will moor the oil production vessel for six months, with an option to stay there longer if needed.

The aging Terra Nova stopped producing oil offshore almost a year ago.

It has been floating in Conception Bay for weeks, which is a visible sign of the crisis affecting the province’s oil industry.

It was supposed to be in Spain this year, undergoing a redevelopment that would extend its lifespan by a decade and recover up to 80 million additional barrels of oil in the Terra Nova field.

But that contract was derailed by the pandemic, and Suncor is now conducting a thorough review to determine how best to get the ship back to the Grand Banks.

In the meantime, like many companies connected to the offshore, Suncor has downsized.

One hundred contract workers will be laid off at the end of this month.

The company has not commented on the future of the 300 people who work directly for Suncor in the province.

The Terra Nova FPSO will become the third major oil asset to be stationed at Bull Arm as the industry grapples amid a pandemic that has caused global upheaval in the oil and gas industry. With offshore exploration at a low point, the Henry Goodrich and West Aquarius drilling rigs are also idle at Bull Arm, the same site where the Hibernia and Hebron rigs were built.

The only platform currently in service in the offshore, the Transocean Barents, is completing a drilling campaign for Equinor in the Flemish Pass.

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