The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has suspended petroleum-related operations conducted by the SeaRose Floating, Production, Storage and Offloading (FPSO) vessel operating pursuant to Husky Oil Operations Limited’s (Husky’s) Operations Authorization (OA) with such operations to be suspended in a safe, controlled and environmentally prudent manner while maintaining the integrity of the installation.

This decision has been made pursuant to subsection 138(5) of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and subsection 134(7) of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act. The SeaRose FPSO is located in the White Rose Field, approximately 350 km east of St. John’s.

This decision relates to an incident on March 29, 2017, when an iceberg entered the 0.25 nautical mile Ice Exclusion Area of the SeaRose FPSO. There were 84 personnel and upwards of 340,000 barrels of crude onboard at that time. In accordance with Husky’s Ice Management Plan (IMP) filed with the
C-NLOPB as a requirement of Husky’s OA, the SeaRose FPSO should have disconnected and sailed away from the threatening iceberg. That action was not taken and personnel were at one point instructed to muster and ‘brace for impact’.

Ultimately, the iceberg did not make contact with the SeaRose FPSO or subsea infrastructure. There were no injuries, no environmental damage and no damage to the facility.

Along with the public issuance of a C-NLOPB Incident Bulletin on March 30, 2017, the C-NLOPB’s Chief Safety Officer (CSO) issued a Notice of Non-Compliance to Husky for failing to comply with its IMP, along with an Order to Comply. Husky submitted its Final Investigation Report into the incident on April 27, 2017 and a formal enquiry was launched by the C-NLOPB on May 9, 2017, conducted by C-NLOPB Safety and Environmental Compliance Officers.

This decision to suspend operations was taken now because of the preliminary report findings, which included: Husky did not follow its IMP; onshore senior management did not ensure the IMP was followed; and the Offshore Installation Manager failed to disconnect in accordance with the IMP. These findings have been shared with Husky and speak to the C-NLOPB’s concerns with the Operator’s adherence to its emergency response plans.

The C-NLOPB has determined there are serious issues respecting Husky’s ice management, management systems and organizational decision-making. Based on the enquiry’s preliminary findings, the C-NLOPB lacks full confidence that appropriate action will be taken by the Operator during an emergency situation. The SeaRose FPSO’s petroleum-related operations will remain suspended until the C-NLOPB is confident that corrective and appropriate actions to address the findings related to its ice management, management system and organizational structure have been addressed to the satisfaction of the CSO and Chief Conservation Officer, in a manner that ensures the safety of personnel and the protection of the environment.

At this time, the C-NLOPB does not have similar concerns with drilling operations respecting the Mobile Offshore Drilling Unit Henry Goodrich, which is also operated by Husky, as it has demonstrated acceptable adherence to its IMP in the past.

As this matter is ongoing and further enforcement action may be necessary, the C-NLOPB is unable to comment further until Husky has responded in a manner acceptable to the regulator.

Media Contact:
Lesley Rideout
Communications Officer
(709) 778-4224
(709) 725-2900 (cell)
lrideout@cnlopb.ca