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August 21, 1998
(Mines and Energy)


Minister responds to board's decision to allow the use 
of European welding standards for Terra Nova Project

Charles Furey, Minister of Mines and Energy, responded to the Canada-Newfoundland Offshore Petroleum Board's (C-NOPB) decision earlier today to allow the use of European welding standards for the development of the Terra Nova oil field.

"Government's primary concern throughout the continued development of the province's offshore petroleum industry has been and will continue to be the safety of the workers involved in the industry. For this reason, I am pleased that the C-NOPB conducted a thorough review of the application by the Terra Nova consortium to replace the Canadian Standards Association's welding standards with European standards," says Minister Furey. "I accept the C-NOPB's decision, which was arrived upon only after in-depth consultation with various industry representatives like Lloyd's Register of Shipping, that the European standard meets or exceeds the safety levels provided for under the Canadian standards."

Minister Furey stated that with equivalent safety standards assured, the C-NOPB had to determine the most appropriate process to be used for the development of the Terra Nova field. The decision was made in consideration of which standard would assure the greatest productivity, competitiveness and long-term industrial benefits for the province.

The C-NOPB determined that the use of European standards will allow for the greatest efficiency with respect to completing the work at the Bull Arm site. "Bull Arm has the potential to become a world-class fabrication facility. The quality of work performed during the Hibernia project was second to none, but now we must all work together to reach the next step which is ensuring a high level of productivity to enable the yard to become internationally competitive," says Furey.

The Petroleum Development Association, the union for the Bull Arm site, has issued statements supporting the use of the European welding standard. The Petroleum Development Association has also stated that the use of the European standard may result in increased industrial benefits for the province.

Contact: Tara Laing, Communications, (709) 729-4890.

1998 08 21 4:30 p.m.


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