CALGARY — Cenovus Energy says it will restart work on a stalled offshore oil project in Newfoundland.
Cenovus president Alex Pourbaix says the joint owners of the West White Rose development have worked to minimize the risk involved in continuing the project.
Husky Energy, which was bought by Cenovus last year, announced in September 2020 that it was reconsidering the future of the West White Rose project following a crash in global oil prices.
The company said at the time it was reviewing its operations in the province, prompting anxieties it would abandon operations in the White Rose oilfield altogether.
Cenovus says the West White Rose project will extend the life of the White Rose oilfield by about 14 years, with peak production reaching an expected 80,000 barrels a day by the end of 2029.
The company says construction on the project's infrastructure is about 65 per cent complete, and first oil is anticipated in first half of 2026.
This report by The Canadian Press was first published May 31, 2022.
The Canadian Press
Note to readers: This is a corrected story. A previous version said Husky halted construction in September 2020, but in fact construction had already stopped at that point. It also misstated the relationship between Husky and Cenovus.
