According to a recent story by the Calgary Herald, Suncor Energy Inc. and Cenovus Energy Inc. are swapping interests in stalled offshore oil projects.
It is a move that could restart work at both as well as boost job prospects.
The agreements would restructure both the Terra Nova and West White Rose projects off the coast of Newfoundland and Labrador.
With $205 million in funding from the provincial government, work will re-start on the Terra Nova project this month. The companies will evaluate the feasibility of re-starting work on West White Rose by the middle of 2022.
Suncor president and CEO Mark Little said in a release "This agreement also provides certainty for the 1,000 plus local direct and indirect jobs that support the project".
"We appreciate the deep collaboration and support from the provincial and federal governments, which has been crucial to helping us reach this important milestone."
Local contractors servicing the equipment and ships that service the Terra Nova and West White Rose facilities are also expected to benefit from work re-starting.
"The Terra Nova (floating, production, storage and offloading facility) once looked perilously close to never returning to production and now we will see work begin immediately here in the province," Charlene Johnson, CEO of the Newfoundland and Labrador Oil and Gas Industries Association (NOIA), said in a release, adding the development "means significant work for NOIA members."
