Husky offshore crude-oil ship returning to work

ST. JOHN’S, N.L. — Husky Energy Inc.’s SeaRose FPSO vessel has been cleared by the regulator to return to duty gathering, storing and offloading crude oil from an oilfield off the Newfoundland and Labrador coast.

The Canada-Newfoundland and Labrador Offshore Petroleum Board said it has withdrawn the suspension ordered nine days ago following actions by Husky, which include “significant organizational changes,” specifically citing the appointment of Trevor Pritchard as senior vicepresident, Atlantic region, in place of his predecessor, Malcolm Maclean.

It also commends Husky for completing an emergency response drill, observed by the board, as well as reviewing and improving its ice management and emergency response plans.

The board suspended the floating production, storage and offloading vessel based on preliminary results of an inquiry into an incident a year ago when it failed to follow protocol and sail away as an iceberg entered its 0.25-nautical-mile ice exclusion area.

In a presentation at an industry conference on Wednesday, Husky CEO Rob Peabody said he didn’t know when the suspension would be lifted, but he was confident it wouldn’t affect production guidance for this year.

The suspension interrupted production of about 38,000 barrels of oil per day, with about 27,000 bpd net to Husky as 70 per cent owner.