Suncor To Take Impairment Charge Of About C$425 Mln On White Rose Assets

(RTTNews) - Suncor Energy Inc. (SU, SU.TO) said Monday that it will take a non-cash after-tax impairment charge of about C$425 million in the fourth quarter of 2020 regarding its share of the White Rose asset and West White Rose Project.

The West White Rose Project was intended to access 200 million barrels of crude oil and extend the life of the White Rose field by about 14 years. However, the recent acquisition of the operator has cast significant doubt on the future of the West White Rose Project.

Suncor noted that discussions are ongoing with the operator and various levels of government to determine the future of the project. The Government of Newfoundland and Labrador has agreed to provide some support for the West White Rose Project in 2021.

Suncor said its 2021 guidance remains unchanged as the White Rose field will remain on line producing. The company's guidance did not include any major capital spend on the West White Rose Project in 2021.