Home Energy assets Cenovus Energy Reaches Restructuring Agreement for Atlantic Assets

Cenovus Energy Reaches Restructuring Agreement for Atlantic Assets


Sept. 8 (Reuters) – Cenovus Energy Inc (CVE.TO) has reached agreements with its partners in the Atlantic region to restructure the company’s vested interests in the Terra Nova and White Rose projects, the producer said on Wednesday. of oil and gas.

The deals will increase Cenovus’ stake in Terra Nova and reduce it in the White Rose field, if a decision is made to restart West White Rose, the company said.

Its direct stake in Terra Nova will be 34%, compared to 13%. The company will receive $ 78 million from exiting partners for future obligations related to the decommissioning of Terra Nova assets.

Production at Terra Nova is expected to resume before the end of 2022, with gross production expected to reach around 29,000 barrels per day in 2023.

Cenovus would reduce its stake in White Rose to 60% from 72.5% and to 56.37% from 68.87% in satellite extensions. The company and its partners continue to assess their options on the West White Rose project, with a decision to be made by mid-2022, he said.

Cenovus, one of Canada’s largest producers, said it continues to make progress toward its $ 10 billion net debt goal, which it expects to achieve later this year.

Separately, Suncor (SU.TO) said it has agreed to increase its stake in the White Rose offshore field by 12.5% ​​instead of 27.5% upon payment in cash by Cenovus.

Report by Sahil Shaw in Bengaluru; Editing by Shailesh Kuber

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