Suncor Energy and Terra Nova co-owners reach Agreement in Principle on Terra Nova
17 June 2021 - 8:30AM
Suncor today advised that the co-owners of the Terra Nova Floating,
Production, Storage and Offloading (FPSO) facility and associated
Terra Nova Field (“Terra Nova” or “the project”) have reached an
agreement in principle to restructure the project ownership and
provide short-term funding towards continuing the development of
the Asset Life Extension Project, with the intent to move to a
sanction decision in the Fall. A subset of owners will increase
their ownership of the project for consideration payable from the
other owners. Suncor’s ownership will increase to 48% from
approximately 38%.
The agreement is subject to finalized terms and
approval from all Parties, including board of director approval
where appropriate, and is contingent upon the previously disclosed
royalty and financial support from the Government of Newfoundland
& Labrador. Further details will be provided when agreements
are finalized.
“Over the past year, Suncor has worked diligently
with all stakeholders to determine a path forward for Terra Nova,”
said Mark Little, Suncor president and chief executive officer.
“Despite numerous setbacks, Suncor, as operator, continued to
persevere and explore options to achieve an economic return for our
investors while protecting the employment of hundreds of
Newfoundlanders and Labradorians. Although this agreement in
principle is not a guarantee, it sets a path forward in the next
few months to secure a return to operations for many years to
come.”
Suncor’s 2021 guidance remains unchanged.
Prior to completion of the restructuring, the
Terra Nova co-owners are Suncor (operator, 37.675%), ExxonMobil
(19%), Equinor (15%), Cenovus (13%), Murphy (10.475%), Mosbacher
(3.85%) and Chevron (1%).
Legal Advisory – Forward-Looking
Information
This news release contains certain forward-looking
information and forward-looking statements (collectively referred
to herein as “forward-looking statements”) within the meaning of
applicable Canadian and U.S. securities laws. Forward-looking
statements in this news release include statements and expectations
regarding the continued development of the Asset Life Extension
Project, the intent to move to a sanction decision in the Fall, and
the intent of Suncor and other owners to increase their ownership
interest. Forward-looking statements are based on Suncor’s current
expectations, estimates, projections and assumptions that were made
by the company in light of its information available at the time
the statement was made and consider Suncor’s experience and its
perception of historical trends, including expectations and
assumptions concerning: the accuracy of reserves estimates; the
current and potential adverse impacts of the COVID-19 pandemic,
including the status of the pandemic and future waves and any
associated policies around current business restrictions,
shelter-in-place orders or gatherings of individuals; commodity
prices and interest and foreign exchange rates; the performance of
assets and equipment; capital efficiencies and cost savings;
applicable laws and government policies; future production rates;
the sufficiency of budgeted capital expenditures in carrying out
planned activities; the availability and cost of labour, services
and infrastructure; the satisfaction by third parties of their
obligations to Suncor; the development and execution of projects;
and the receipt, in a timely manner, of regulatory and third-party
approvals.
Forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties,
some that are similar to other oil and gas companies and some that
are unique to Suncor. Suncor’s actual results may differ materially
from those expressed or implied by its forward-looking statements,
so readers are cautioned not to place undue reliance on them.
Suncor’s Management's Discussion and Analysis for
the first quarter of 2021 dated May 3, 2021, its Annual Information
Form and Annual Report to Shareholders, each dated February 24,
2021, Form 40-F dated February 25, 2021, and other documents Suncor
files from time to time with securities regulatory authorities
describe the risks, uncertainties, material assumptions and other
factors that could influence actual results and such factors are
incorporated herein by reference. Copies of these documents are
available without charge from Suncor at 150 6th Avenue S.W.,
Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by email
request to invest@suncor.com or by referring to the company’s
profile on SEDAR at sedar.com or EDGAR at sec.gov. Except as
required by applicable securities laws, Suncor disclaims any
intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Suncor Energy is Canada's leading
integrated energy company, with a global team of over 30,000
people. Suncor's operations include oil sands development,
production and upgrading, offshore oil and gas, petroleum refining
in Canada and the US, and our national Petro-Canada retail
distribution network (now including our Electric Highway network of
fast-charging EV stations). A member of Dow Jones Sustainability
indexes, FTSE4Good and CDP, Suncor is responsibly developing
petroleum resources, while profitably growing a renewable energy
portfolio and advancing the transition to a low-emissions future.
Suncor is listed on the UN Global Compact 100 stock index. Suncor's
common shares (symbol: SU) are listed on the Toronto and New York
stock exchanges.
For more information about Suncor, visit our web
site at suncor.com, follow us on Twitter @Suncor
Media inquiries: 1-833-296-4570
media@suncor.com
Investor inquiries: 800-558-9071
invest@suncor.com
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