Husky Energy suspends SeaRose operations after close call with East Coast iceberg

SeaRose production is 27,000 barrels of oil a day

Husky Energy will begin taking steps to suspend operations of its SeaRose floating production, storage and offloading vessel (FPSO) and associated production facilities offshore Newfoundland and Labrador.

This is being undertaken to comply with an order received from the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB), related to an iceberg incident that occurred in March 2017.

An iceberg came with a quarter of a nautical mile of SeaRose on March 29, when it was laden with 340,000 bbl of crude and 84 workers, according to the Canada-Newfoundland and Labrador Offshore Petroleum Board.

The board concluded that Husky has “serious issues” with its ice-management systems and organizational decision-making, and the company won’t be permitted to resume operations on the vessel until the body is confident the problems have been addressed.

“We could have and should have responded differently according to the pre-existing plan, and we will learn from this incident. We will work with the C-NLOPB and take the actions necessary to satisfy the regulator,” said CEO Rob Peabody.

Current production from the SeaRose FPSO is approximately 27,000 barrels of oil per day (Husky working interest, before royalties).

The suspension of operations will take place in a safe, controlled and environmentally prudent manner, while maintaining the integrity of the installation, according to Husky.

Husky will undertake all steps necessary to comply with the directives of the C-NLOPB. A number of measures have already been put in place to further improve ice management operations.

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