NLIS 2
August 31, 2001
(Industry, Trade and Rural Development)
 

Local companies participating in Offshore Europe next week in Scotland

Delegates representing 25 local companies and organizations will be in Aberdeen, Scotland next week for Offshore Europe 2001, an international petroleum conference and exhibition that is expected to attract 25,000 participants from every corner of the globe.

Offshore Europe is held every two years and alternates with Offshore Northern Seas, which is held in Norway. This year the event runs from September 4 to 7 under the theme "Sharp Shooting the Remaining Potential." Offshore Europe is considered one of the world's leading conferences for the global oil and gas industry. Topics during this year's event include: sustainability, technology, e-business and vision for 2020, to name a few. 

Industry, Trade and Rural Development Minister Beaton Tulk, who is leading the delegation, said that the event is more important than ever to Newfoundland and Labrador, now that the province's oil and gas industry is coming of age. 

"Our oil and gas industry is making a significant contribution to our economy, and holds great prospects for future growth, development and prosperity for our province. As our industry matures to become a global player, now is the time to take advantage of international events to promote the significant commercial potential in our offshore sector, including our industrial and business expertise that supports this industry," Minister Tulk said.

"As well, it is important that we remain knowledgeable about the developments and complexities of the industry worldwide."

To date, there have been 23 significant discoveries made offshore Newfoundland and Labrador, including Hibernia, Terra Nova, White Rose and Hebron/Ben Nevis fields. Most current resource estimates include 2.1 billion barrels of oil, 9.9 trillion cubic feet of natural gas, and 432 million barrels of natural gas liquids. More than $13 billion has been spent in exploration, delineation and development in our offshore area thus far.

Within the next five years, the province is expected to produce about one-third of Canada's light crude oil.

Newfoundland and Labrador will have its own pavilion at Offshore Europe, which will allow the province to provide first-hand information on Newfoundland and Labrador's petroleum industry to exhibition participants. Local companies have an opportunity for their own exhibits at the pavilion.

Local companies and organizations planning to have representatives at Offshore Europe are A. Harvey & Company Ltd., AMI Group, Atlantic Canada Opportunities Agency, Bull Arm Site Corporation, Canada-Newfoundland Offshore Petroleum Board, City of St. John's, ConPro Group Limited, Cougar Helicopters Inc., Cox Hanson O'Reilly Matheson, Dominion Diving (NF) Ltd., EMCO Offshore, Fugro Jacques GeoSurveys, G.J. Cahill and Co. Ltd., Memorial University, Newfoundland Service Alliance Inc., OIS Fisher Inc., Peter Kiewit Sons Ltd., Pro-Dive Marine, Publishing World Inc. Atlantic Oil Works, Resource Development Council of Newfoundland and Labrador, Robinson Blackmore Printing and Publishing, Secunda Marine Services, Stratos, and the Town of Paradise. 

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.


Oil and Gas Industry Highlights � Newfoundland and Labrador

� Over the past 30 years there has been significant exploration resulting in major hydrocarbon discoveries off Newfoundland and Labrador. This has developed into a progressive and exciting new industry. Today, new benefits are accruing to the province's business and service sectors, new employment opportunities for skilled workers have opened up, and the economy has been boosted overall.

� Twenty-three significant offshore discoveries made to date, including four major projects � Hibernia, Terra Nova, White Rose and Hebron/Ben Nevis fields. Most current resource estimates include 2.1 billion barrels of oil, 9.9 trillion cubic feet of natural gas and 432 million barrels of natural gas liquids. More than $13 billion has been spent in exploration, delineation and development in our offshore area thus far.

� The province's petroleum industry has contributed to strong economic and employment growth. In 1999, offshore-related activity accounted for more than 10 per cent of provincial gross domestic product and 2.6 per cent of employment in Newfoundland and Labrador.

HIBERNIA

� Hibernia, discovered in 1979, has been the cornerstone of our growing oil and gas sector. This field is estimated to contain 884 million barrels of oil, making it the fifth largest oil field in Canada. Using a Gravity Based Structure (GBS), Hibernia is currently averaging production of 140,000 barrels per day, with approval to produce upwards of 180,000 barrels per day. The life span of the project is estimated at 18 years.

� This project has played a significant role in generating a well-trained labour force, and the expansion and improvement of local infrastructure and industrial fabrication facilities. Today, the Hibernia production platform stands 224 meters high in the middle of the North Atlantic. This would represent a building half the height of the Empire State Building towering out of the ocean.

TERRA NOVA

� The province's second oilfield, Terra Nova, was discovered in 1984 and is located 22 miles from the Hibernia field. This field is estimated to contain between 370 and 470 million barrels of recoverable oil with a life expectancy of approximately 15 years.

� Terra Nova is being developed utilizing a Floating Production Storage and Offloading (FPSO) vessel. This vessel just recently arrived at the Terra Nova field. First oil from this project is expected later this year.

WHITE ROSE . . . OTHERS

� In addition to the Hibernia and Terra Nova fields, several other potential fields, such as White Rose and Hebron/Ben Nevis, are expected to be developed in the near future. Other smaller discoveries may also prove feasible after further exploration has been completed. 

� The White Rose field, with estimated reserves of 283 million barrels of oil and 2.7 trillion cubic feet of natural gas, contains the largest discovered gas resource on the Grand Banks to date. A project development application has been received and has gone through a public review process. The provincial and federal governments expect to be in a position by the end of this year to make a decision as to whether the White Rose project will proceed. 

� The fourth major field, Hebron/Ben Nevis, has total discovered resources of 400 to 700 million barrels of oil. If the economic viability is confirmed for this project, front end engineering work could begin in 2002.

OFFSHORE GAS

� Offshore gas resources also have potential for future development. There are 9.9 trillion cubic feet of discovered resources, and an estimated 50-60 trillion cubic feet of undiscovered resource potential. Government is finalizing a natural gas strategy that will help facilitate future development of this resource.

2001 08 31                                                  11:20 a.m.