The SeaRose floating production platform will be used to produce oil from the North Amethyst satellite field. (CBC)

Husky Energy has announced that offshore oil production has started at a field east of Newfoundland, extending the value and production life of the White Rose project.

President and CEO John Lau said in a statement that production started Monday at North Amethyst, a satellite field near White Rose.

Husky believes North Amethyst has about 90 million barrels of oil, according to a late 2009 estimate.

"This is a major milestone for Husky," Lau said.

"Developing North Amethyst and the other satellite fields will complement the existing reservoir and extend the production life of White Rose."

Husky will use underwater lines to draw oil to the SeaRose, the floating platform at the White Rose project.

Calgary-based Husky is the operator of White Rose, with a 72.5 per cent stake in the project. Minority partners are Suncor Energy, which acquired its stake through its merger with Petro-Canada, and Nalcor, the Crown-owned energy agency of the Newfoundland and Labrador government.

North Amethyst was discovered just four years ago, marking a comparatively rapid development timeline. Hibernia, which became the first field to go into production off Newfoundland in 1997, was discovered in 1979.

Husky and its partners received regulatory approval for the drill in 2008.