August 3, 1999
(Industry, Trade and Technology)

Petroleum Engineering Report provides comprehensive industry assessment

Industry, Trade and Technology Minister Sandra Kelly released a report today from the Offshore Petroleum Engineering Task Force, which brought together industry stakeholders to conduct a comprehensive assessment of the province's offshore engineering capabilities.

"The engineering base we have in Newfoundland and Labrador plays a vital role in our ability to develop a strong offshore oil industry," said Minister Kelly. "This report underscores the importance of a cohesive approach by the engineering community in pursuing future projects."

The task force was formed last summer in an effort to address present and future engineering requirements in Newfoundland and Labrador's offshore oil and gas industry. Task force participants were all key industry stakeholders in the province, and included: Canada-Newfoundland Offshore Petroleum Board, Department of Industry, Trade and Technology, Association of Professional Engineers and Geoscientists of Newfoundland, the Consulting Engineers of Newfoundland and Labrador, Husky Oil, Mobil Oil Canada, Norsk Hydro Canada Oil and Gas, and Petro-Canada/Terra Nova Project.

Task force chair, Max Ruelokke said: "The Offshore Petroleum Engineering Task Force both verified and quantified the resources and capabilities we have available. More importantly, the task force examined ways we could enhance our existing skills for a stronger industry."

The report concluded that current capabilities are sufficient to meet the operational needs of Hibernia and Terra Nova, as well as a number of add-on projects. However, it recommended that the industry focus on enhancing existing engineering capabilities in conceptual engineering, feasibility studies, preliminary engineering and detailed design engineering in the short term. In addition, the report noted that it would be beneficial for local engineering firms to work cooperatively, in order to be more globally competitive. The report also highlighted the need to locate overall project management and engineering decision-making within the province for future stand-alone projects.

Task force participant Allen Steeves, representing the Association of Professional Engineers and Geoscientists of Newfoundland said: "APEGN and its members, together with other task force participants and other stakeholders, are dedicated to the continuous development of Newfoundland and Labrador as a centre of excellence in the global oil and gas industry. The work of the task force is a positive step in this direction."

The report also focused on the education aspect of the engineering community, and identified skills requirements that will help education institutes to match industry needs. Memorial University of Newfoundland is currently addressing the possibility of expanding its engineering program to include an offshore petroleum engineering focus.

Although the report has been completed, the task force has committed to convene twice a year in order to address ongoing issues in the industry. This will provide a means for continuous feedback to government on the offshore oil and gas sector in Newfoundland and Labrador.

"The recommendations made in this report will provide government with important guidelines to ensure that this industry has sustained growth in our province," noted Minister Kelly. "This report will also be useful for the benefits maximization strategy now being developed by government, which is an important step in making sure that Newfoundlanders and Labradorians gain full and fair benefits from our oil and gas industry."

Media contact:

Industry, Trade and Technology
Jackie Simon
Communications
(709) 729-0050

AOC Brown & Root Canada
Max Ruelokke
Task Force Chair
(709) 726-2585

APEGN
Allen Steves
Executive Director
(709) 753-7714

1999 08 03 3:15 p.m.