January 17, 2018 / 10:29 PM / a year ago

Husky ordered to halt Atlantic Canada operations after iceberg close call

CALGARY, Alberta (Reuters) - Canadian regulators on Wednesday ordered Husky Energy (HSE.TO) to suspend operations on its 27,000-barrel-per-day SeaRose floating production vessel off the coast of eastern Canada after an iceberg came too close to the facility in March 2017.

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) made its decision after an investigation found Husky did not follow its own Ice Management Plan when an iceberg came within 0.25 nautical miles of the floating production, storage and offloading (FPSO) vessel.

Husky did not disconnect the SeaRose FPSO and sail away from the iceberg as it should have done, and at one point people on board were ordered to “brace for impact,” C-NLOPB said in a statement.

At the time, there were 84 people and 340,000 barrels of crude on board the vessel, which is located in the North Atlantic’s White Rose oilfield, around 350 kilometers (217 miles) east off the coast of New Brunswick province.

The iceberg did not ultimately make contact with the SeaRose or underwater infrastructure and there were no injuries, environmental damage or damage to Husky facilities.

“We could have and should have responded differently according to the pre-existing plan, and we will learn from this incident. We will work with the C-NLOPB and take the actions necessary to satisfy the regulator,” Husky CEO Rob Peabody said in a statement.

Husky spokesman Mel Duvall said the company does not know for how long the SeaRose FPSO will be shut down.

Reporting by Nia Williams; Editing by Sandra Maler

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