Suncor remains tight-lipped on Terra Nova timelines, takes no questions during conference

The head of Suncor's operations in Newfoundland and Labrador gave an update at the Energy N.L. conference on Wednesdaybut didn't give much insight into the holdup with Terra Nova.

Brent Miller said the top priority for the company in Newfoundland and Labrador is returning Terra Nova to production.

He didn't say when that's expected to happen, or give specifics on whyit hasn't happened yet.

"Our team is focused on three main areas," he told the crowd. "Safely completing quayside scope, preparing for the reconnection and first oil, and production ramp up and sustainment."

Miller said an updated schedule will come after mid-year. The speaker session started late Wednesday morning, with the moderator saying there was no time for audience questions. While executives from BP, Exxonmobil and Equinor were available for media interviews throughout the conference, Suncor did not hold a media availability.

Troubled project after huge subsidies

The Terra Nova has not produced oil since late 2019. The fate of the massive floating production, storage and offloading or FPSO vessel was up in the air during the early months of the pandemic, as global oil prices plummeted.

The partners involved in Terra Nova talked about abandoning the project, which has returned about $6 billion in royalties since it began production in 2002. Theyreached a deal with the provincial government in June 2021 that saw the province handover $205 million in cash and forfeitup to $300 million in future royalties.

The subsidy drew praise from those who supported the industrybut criticism from those citing theirreversible effects of climate change and the province's own financial problems.

Within a year, Suncorhad doubled its revenue and has continued posting healthy profits, causing even the province's energy minister to express frustration at the bailout.

However,also on Thursday, the company took a different turn in Alberta where it announced it'slaying off 1,500 employees in an attempt to cut costs by $400 million by the end of this year.

The company reported its first-quarter earnings after the close of markets on Monday at $2.05 billion,down from $2.95 billion in the same quarter of 2022.

Suncor's new CEO, Rich Kruger, notified staff on Thursday in an email.

The Terra Nova FPSO went to Spain for repairsand was supposed to return to production earlier this year. Upon returning to N.L., however, additional repairs were needed. Suncor and its partners in the project have never explained the problem.

Miller used part of his speech Wednesday morning to point out the benefits ofthe ongoing repairs in Bull Arm, which includes 300 Suncoremployees and 270 contractors at work. He said they're using six hotelsand various local businesses on a daily basis.

"The move from Conception Bay to quayside allows us to complete the remaining work and employ a large workforce more efficiently," Miller said.

Suncor, along with its partner Cenovus, has removed the project from its projectionsfor 2023.

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