Husky says to review prospects for its Eastern Canada White Rose crude project

New York — Husky Energy plans to evaluate the viability of its White Rose crude project offshore Newfoundland and Labrador, the company said Sept. 9, citing market uncertainty in the wake of the coronavirus pandemic.

"Unfortunately, the delay caused by COVID-19 and continued market uncertainty leaves us no choice but to undertake a full review of the project and, by extension, our future operations in Atlantic Canada," CEO Rob Peabody in a statement.

The review will be of "scope, schedule and cost" and is critical to "maintaining the strength of our balance sheet with ample liquidity," Peabody said in the statement.

White Rose has an expected peak capacity of 75,000 b/d, according to Husky. Through July of this year, the White Rose field has produced about 19,324 b/d, according to Canada Newfoundland and Labrador Petroleum Board data.

The announcement from Husky comes after Suncor disconnected the Terra Nova floating, production, storage and offloading vessel and dock offshore Newfoundland earlier this year. The majority owner and operator of Terra Nova, Suncor has not definitively said when or if Terra Nova production will resume. Terra Nova has produced just 1,932 total barrels through July, according to the CNLOPB.