The Canadian oil and gas industry recovery gained steam in Newfoundland Wednesday with a commitment to restart a mothballed Grand Banks production platform and the revival of an expansion for a second North Atlantic site.

Cenovus Energy Inc., Murphy Oil Corp. and Suncor Energy Inc. are planning an ownership overhaul to begin a 10-year asset life extension project for the dormant Terra Nova field. The field is around 250 kilometers (155 miles) offshore St. John’s.

The agreement also makes an ownership change in the neighboring White Rose field. The shuffle spreads partner risk to improve the outlook for rescuing a C$3.2 billion ($2.6 billion) addition called West White Rose that the Covid-19 pandemic interrupted.

The Terra Nova rebirth “provides a superior value...