Photo: The White Rose development uses SeaRose FPSO; Photo courtesy of Suncor

Suncor to book $425 million impairment on White Rose assets

Canadian energy company Suncor will record a non-cash after-tax impairment charge of approximately $425 million in the fourth quarter of 2020 on its share of the White Rose asset and West White Rose Project in Canada.

The White Rose asset joint venture owners are Cenovus (operator, 72.5 per cent,) and Suncor (27.5 per cent).

The West White Rose Project joint venture owners are Cenovus (operator, 69 per cent), Suncor (26 per cent) and Nalcor (5 per cent).

Cenovus became the operator of the White Rose JV following its recent merger with Husky Energy.

While the asset is currently producing, the West White Rose Project was intended to access 200 million barrels (gross) of crude oil and extend the life of the White Rose field by approximately 14 years, Suncor said on Tuesday.

However, Suncor noted that the recent acquisition of the operator has cast significant doubt on the future of the West White Rose Project.

Suncor further said that discussions are ongoing with the operator and various levels of government to determine the future of the project.

The Government of Newfoundland and Labrador has agreed to provide some support for the West White Rose Project in 2021.

Suncor’s 2021 guidance remains unchanged as the White Rose field will remain online producing as expected and Suncor’s guidance did not include any major capital spend on the West White Rose Project in 2021.