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Cenovus Subsidiary Husky Oil Operations Fined $1.83 Million for 2018 Canada Oil Spill

4/28/2024

(Reuters) — A Canadian regulator said on Friday a Cenovus Energy subsidiary has been fined C$2.5 million ($1.83 million) for its role in the 2018 oil spill off the country’s Atlantic Coast.

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) had laid three charges against Husky Oil Operations Ltd. for the spill — the largest in the province’s history — in October 2021. Husky was acquired by Cenovus Energy for $2.9 billion in the same year.

A leaking flow line from the White Rose Field to the SeaRose storage vessel spilled 250 cubic meters (1,572 barrels) of oil in November 2018, temporarily shutting down all crude production in the waters of Newfoundland and Labrador.

The company was fined after pleading guilty to a charge related to the spill, according to the regulator’s statement.

C-NLOPB said the company was ordered to pay C$2 million for offences under the Federal Fisheries Act and Migratory Birds Convention Act.

It was also ordered to pay C$400,000 into the Environmental Damages Fund and C$100,000 under the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act.

Cenovus Energy did not immediately respond to Reuters request for comment.

($1 = 1.3662 Canadian dollars)

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