Husky freezes activities on West White Rose project

Canadian oil and gas company Husky Energy will begin a systematic and orderly suspension of major construction activities related to its offshore West White Rose project.

The decision reinforces Husky’s objective to prevent the transmission of the COVID-19 virus among its employees, contractors, and the community, the company said in an update last Sunday.

The company added it had carefully assessed the risks and determined they could not be adequately mitigated for such a large construction workforce.

“We are taking the steps necessary to keep our people and our construction sites safe,” said CEO Rob Peabody.

“These are the right decisions for our people, their families and the community.”

Husky further said it was working cooperatively with its contractors to safely suspend all activities, and to demobilize and secure its construction sites.

Production from the White Rose field and its satellite extensions, located 350 kilometres off the coast of Newfoundland and Labrador, is continuing with enhanced workforce control measures introduced to ensure the ongoing safe operations on the SeaRose floating production, storage and offloading vessel.

Husky approved the West White Rose development in May 2017. The West White Rose field in Canada’s Atlantic is being developed using a fixed wellhead platform tied back to the SeaRose floating production, storage and offloading (FPSO) vessel.

When it comes to the progress of the West White Rose project, Husky said last October that the project had passed a 52% completion mark. The installation work was expected in 2021 and first oil was expected around the end of 2022.

Husky has also recently decided to cut its 2020 capital spending by $900 million in upstream spending and an additional $100 million in additional measures.

Under the new plan, Husky decided to delay the development of an oilfield located offshore China as well as the development of a natural gas field offshore Indonesia.

Offshore Energy Today Staff