Husky Energy has sanctioned a $3.6billion expansion project off the east coast of Canada.
Calgary-based Husky said it expected first oil from West White Rose in 2022 and a peak production rate of 75,000 barrels per day in 2025.
A new wellhead platform will be constructed for the project and tied back to the SeaRose floating production, storage and offloading (FPSO) vessel.
Building work will start later this year and about 250 permanent platform jobs will be created on completion.
White Rose was discovered 350 kilometres east of St. John’s, Newfoundland and Labrador, in 1984.
Commercial production via SeaRose started in 2005.
About 275 million barrels of oil has been produced since then.
Husky has a 70% interest in the project. Suncor Energy and Nalcor Energy are its partners.
Husky chief executive Rob Peabody said the company had achieved a 30% improvement in capital efficiency while also increasing the original estimate for peak production by 40%.
Mr Peabody said: “Over the years the Atlantic business has provided some of the strongest returns in the Company’s portfolio and West White Rose is the next chapter.
“This project is of a scale approaching the original White Rose development and is able to use the existing SeaRose FPSO to process and export production.”