West White Rose Project Agreement

This is the first project to receive money from the aid fund announced in September, when the federal government provided $320 million to be managed by Newfoundland and Labrador to support direct and indirect employment in the province`s oil and gas sector, as well as activities that provide environmental and secondary benefits. All funding work is expected to be completed in 2021, but that does not mean that the project will fully resume. In a press release following the announcement, it was simply stated that the funding “protects the possibility of renovating the West White Rose project in 2022, if conditions permit.” Brown said the announcement was good news in a “year of tough decisions” on the project that suspended construction until 2021. At the time, the project was almost 60% complete. “This is the first step in the right direction for the White Rose project,” Brown said. Rotterdam, Netherlands, October 18, 2018 – Van Oord has been commissioned to conduct offshore installation work for the West White Rose project on the east coast of Newfoundland, Canada. The project will provide Husky Energy with access to resources west of the existing White Rose field. Brown, Husky`s senior vice president for the Atlantic region, said the announcement would put the project in a better position for a restart in 2022, so project capacity and skilled workers can be preserved in the province. The money comes from the government`s Oil and Gas Recovery Fund and is the first project to receive funding from this source. A general partnership between SNC-Lavalin, Dragados Canada and Pennecon has been awarded a contract to build husky Energy for the West White Rose project in Newfoundland and Labrador. The money made available by Husky and its partners as part of the offshore efforts will be used for work needed to support the restart of the project. However, there is no specific target date set for this restart or any guarantee that this will happen.

Husky discussed the project`s issues and risks with the provincial and federal governments. The company proposed ideas to protect the jobs and economic benefits of the project. Asked whether Cenovus wanted to deny the project after the merger ended, Brown said it was too early to know. He said his team was determined to continue the West White Rose project. It is known as “hot suspension,” and it is only one option, no certainty that the project will be fully restarted. Some forward-looking statements may be identified by statements, expectations, beliefs, plans, goals, assumptions or future achievements express or discuss (often, but not always, by the use of words or phrases such as “will likely result,” “is expected,” “is expected,” is “targeted,” “estimated,” “project,” “could,” “target,” “objectives,” “objectives,” “goals,” “planned” and “expected.” Forward-looking statements contained in this press release include references to the company`s overall strategic plans and growth strategies, but are not limited to the company`s overall strategic plans and growth strategies; the expected delay of the first West White Rose oil; The expected peak production capacity at West White Rose; and the expected benefits of the West White Rose Project. PC Chief Ches Crosbie joined the assessment and said Furey “should move heaven and earth” to restart the project. He also questioned the number of new jobs that would result from the announcement.