Cenovus Energy company announced that it has entered into agreements with its partners in the Atlantic region to restructure its working interests in the Terra Nova and White Rose projects, a press release issued by the company said.
The company elaborated that this action will improve the economics of the company’s regional portfolio. According to the agreement, Cenovus will increase its working interest in Terra Nova project from 13% up to 34%. It will receive $78 million from the exiting partners as a contribution towards future Terra Nova asset retirement obligations.
In addition, the agreements include one that the company signed with Suncor to reduce its working interest in the White Rose field to 60% from 72.5% in the original field and to 56.375% from 68.875% in the satellite extensions. This action is pending a decision to be made by mid-2022.
In this regard, Alex Pourbaix, Cenovus President & Chief Executive Officer commented: “Sanctioning the Terra Nova asset life extension provides a superior value proposition for our shareholders compared with the alternative of abandoning and decommissioning the project. While we are still evaluating whether to proceed with West White Rose, the capital risk in our portfolio will be reduced if we decide to move forward.”