Husky Energy said it does not anticipate any impact on production of the
White Rose crude grade after a Canadian regulator on Friday lifted a January
17 order suspending operations at the SeaRose floating production, storage and
offloading vessel off the coast of Newfoundland and Labrador.

“We were able to shut operations down in a safe and orderly manner, so we
don’t expect an impact,” Husky spokesman Mel Duvall said in an email Friday.

The Canada-Newfoundland and Labrador Offshore Petroleum Board had ordered
the suspension of SeaRose operations because of Husky’s handling of a close
call with an iceberg on March 29, 2017. Husky said in separate statement
January 17 it would begin shutting the FPSO down to comply with the order.

The regulator said in a statement Friday it had lifted the suspension
because it was satisfied Husky had “taken appropriate action to address the
deficiencies that were identified within the safety culture of their
organization.”

The changes made by Husky include a review of its ice management and
emergency response plans, the completion of an emergency response drill
observed by the regulator and organizational changes including the appointment
of Trevor Pritchard as Senior Vice President for the Atlantic Region,
according to a statement on the regulator’s website.

“The inquiry remains open as we continue to monitor the implementation of
these changes, to ensure operations recommence and continue in a manner that
demonstrates that Husky places the safety of workers and protection of the
environment as their top priority,” the regulator said.

The decision to suspend SeaRose operations was based on Husky’s handling
of the March 29, 2017 close call. The iceberg entered the 0.25 nautical mile
“ice exclusion area” of the FPSO when there were 84 people and as much as
340,000/b of crude onboard and Husky failed to disconnect and sail away from
the iceberg and personnel were told to “brace for impact,” according to the
regulator.

No collision occurred and the incident did not result in any product
release or environmental impact.

Husky’s share of current production from the FPSO is about 27,000 b/d,
while gross SeaRose production from the main White Rose Field and satellite
fields is about 38,000 b/d, according to Husky.

The FPSO is located at the White Rose Field, 350 km east of St. John’s,
Newfoundland and Labrador. Husky operates the main White Rose field with a
72.5% stake, while Suncor holds the remaining 27.5%. Husky has a 68.875% stake
in the satellite fields of South White Rose, North Amethyst and West White
Rose, while Suncor has a 26.125% stake and Nalcor a 5% stake.

–Pat Harrington, patrick.harrington@spglobal.com

–Edited by Keiron Greenhalgh, keiron.greenhalgh@spglobal.com

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