Premier pleased with announcement of first oil at Terra Nova

Premier Roger Grimes today expressed his best wishes to the proponents of the Terra Nova project, led by Petro-Canada, on their announcement of first oil at the Terra Nova field. The proponents announced that first oil is now on board the Floating Production Storage and Offloading (FPSO) vessel.

This announcement marks the province's second producing oil field. The Hibernia field began production in 1997.

"I am very pleased that the Terra Nova proponents have reached first oil. This is a very positive step in this province's maturation as a developing petroleum producer in the global marketplace," said Premier Grimes. "Terra Nova is continuing the momentum that the Newfoundland and Labrador petroleum industry has been experiencing over the past number of years. This will also make the province an even more attractive destination for potential investors.

"This is an exciting period of growth in our petroleum industry. Government anticipates that the Terra Nova production operations will lead to substantial economic spin-off benefits in many sectors of our economy. Our service and supply sectors are expected to receive added opportunities from Terra Nova. Government revenues will also increase through taxation and the receipt of royalty payments," said the premier.

The premier noted that the successful development of the Terra Nova and Hibernia projects demonstrate the quality and effectiveness of the work undertaken by the Newfoundland and Labrador labour force.

"Our workers have proven that they are among the most skilled tradespeople in the world," said the premier. "We must continue this trend and I am confident in our abilities to attract work from future projects such as White Rose and Hebron/Ben Nevis. This will ensure that our position as an attractive investment destination is solidified."

The Terra Nova field was discovered in 1984 and was given project sanction in 1998. Estimated resources include approximately 400 million barrels of reserves with a life expectancy of approximately 15 years. The Terra Nova field is located on the Grand Banks approximately 350 kilometres southeast of St. John's.

Media contact: Carl Cooper, Communications, (709) 729-3960.

2002 01 23                        11:00 a.m.