Cenovus Energy enters into restructuring deal for Atlantic assets

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Cenovus Energy Inc has entered into agreements with its partners in the Atlantic region to restructure the company’s working interests in the Terra Nova and White Rose projects, the oil and gas producer said on Wednesday.

The deals will raise Cenovus’ working interest in Terra Nova and reduce it in the White Rose field, if a decision is taken to restart West White Rose, the company said.

Its working interest in Terra Nova will be 34%, up from 13%. The company will receive $78 million from the exiting partners towards future Terra Nova asset retirement obligations.

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Production at Terra Nova was expected to resume before the end of 2022, with gross production expected to reach about 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 the satellite extensions. The company and its partners continue to evaluate their options on the West White Rose Project, with a decision to be made by mid-2022, it said.

Cenovus, one of Canada’s largest producers, said it continued to progress towards its $10 billion net debt target, which it expected to achieve later this year.

Separately, Suncor said it has agreed to increase its interest in the White Rose offshore field by 12.5% from 27.5% for a cash payment by Cenovus. (Reporting by Sahil Shaw in Bengaluru; Editing by Shailesh Kuber)