Husky to pump up production at White Rose field

Regulators have given Husky Energy approval to increase production at its White Rose offshore oil project off Newfoundland's southeast coast.

Husky received approval from the Newfoundland and Labrador government to increase annual maximum production from 36.5 million barrels per year to 50 million barrels per year.

Natural Resources Minister Kathy Dunderdale said Husky's plan, submitted last September to the Canada-Newfoundland and Labrador Offshore Petroleum Board, is sound.

"It was a good plan. We're pleased with the work the CNLOPB has done," Dunderdale said Monday.

"We're in agreement with the recommendation and we're happy to see this piece of work go ahead."

Dunderdale said the production increase at White Rose will not affect the life of the field, require upgrades to production facilities or affect the benefits plan.

The change, though, will mean White Rose will reach payout on royalties sooner than expected, Dunderdale said.

Husky, which owns a majority interest in White Rose, says the project will have a life of between 12 and 15 years. The field's main oil pool has as much as 250 million barrels of oil, although Husky increased its official estimates on the field's size last fall.

First oil was pumped from White Rose in November 2005.

The approval comes on the heels of a Newfoundland and Labrador government request earlier this year for more information on a proposed development at the Hibernia South project.

Dunderdale said government has a greater level of comfort in approving the White Rose production rate increase than it did with the expansion at Hibernia.