Husky, Suncor suspend West White Rose crude project off Newfoundland because of COVID-19

Canadian producers Husky Energy and Suncor said they suspended construction of the West White Rose crude production platform project offshore of Newfoundland to help prevent the further potential spread of the new coronavirus.

The offshore project is now on hold indefinitely, although construction was more than halfway completed and was slated to come online in late 2022 to eventually produce about 75,000 b/d.

Husky said Sunday the decision is meant to protect the workers from the COVID-19 virus because they determined the risks 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 Husky CEO Rob Peabody in a statement. "These are the right decisions for our people, their families and the community."

The project is located more than 200 miles offshore of Newfoundland and Labrador, and is designed as a fixed wellhead platform tied back to the SeaRose FPSO.

Earlier this month, Husky said it was cutting its 2020 capital spending by more than $27% from nearly $2.4 billion down to more than $1.7 billion.

Husky said the West White Rose decision will add more to its spending reductions, and will release more details later.

Husky owns 68.875% of the project while Suncor holds 26.125% and Nalcor Energy has the remaining 5%. Suncor has yet to announce any major budget cuts.