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June 19, 1998
(Mines and Energy)


The following is being distributed at the request of the Canada-Newfoundland Offshore Petroleum Board:

Terra Nova Engineering

In response to a number of media inquiries concerning the conduct of Terra Nova engineering work, the Canada-Newfoundland Offshore Petroleum Board issued the following information on the status of their ongoing discussions with Petro-Canada on this matter.

Condition 1 to the board's approval of the project states that "as soon as practicable after project sanction, the proponent relocate engineering and procurement activities for the project to Newfoundland."

Since the project was sanctioned in February of this year, the board has been working with Petro-Canada to maximize the participation of Newfoundland and other Canadian engineers in the project and to accelerate the relocation of engineering and procurement work from Leatherhead, England to St. John's. To date, Petro-Canada has increased the participation of Canadians working in Leatherhead from 25 to 45, the vast majority of whom are Newfoundlanders including many recent graduates. Many of these engineers will be returning to the province later this year when construction work at Bull Arm commences. As well, responsibility for the procurement of bulk materials required for the construction of topsides facilities, approximately 50 packages, was transferred to St. John's from Leatherhead in April.

The Board will continue to work with Petro-Canada over the coming months to ensure that the relocation of engineering from Leatherhead to St. John's progresses expeditiously.

Contact: Ted O'Keefe, (709) 778-1441.

1998 06 19 3:05 p.m.


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