Minister releases C-NOPB Annual Report

Mines and Energy Minister Lloyd Matthews today released the Annual Report of the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) for the fiscal year ending March 31, 2002.

The minister described the year as one of significant achievements in the province�s oil and gas industry."We have reached many milestones over the past twelve months," said Minister Matthews."Terra Nova, the province�s second producing oil field, witnessed first oil in January of 2002; and our third oil field, White Rose, was sanctioned in March of 2002 by the proponents, Husky Energy and Petro-Canada.

"Also, the resolution of the boundary dispute between Newfoundland and Labrador and Nova Scotia clears the way for the C-NOPB to convert 3,000,000 hectares of old federal permits into modern exploration licenses during the coming year. All of these positive developments bode well for this developing sector of our economy."

Minister Matthews also applauded the C-NOPB�s policy that the highest safety standards be maintained, and its zero tolerance for complacency in the search for improved equipment, procedures and training. "Safety statistics in the oil and gas industry demonstrated continued improvement over the past year," said the minister. "There were 23 reportable injuries in 2,550,000 person-hours of work. This is an improving statistic and government will continue to work with industry to ensure that safety remains the top priority."

The minister also welcomed the creation of One Ocean, a fisheries and petroleum industry liaison initiative. "This joint venture facilitated by the C-NOPB and the Fisheries and Marine Institute of Memorial University will enable both industries to understand and accommodate each other�s operations. This will ensure a strengthened spirit of co-operation between these two vital sectors of our economy."

The minister noted that the oil and gas industry expended approximately $1 billion dollars in the province last year and new interest is expected in the future. "With $569 million committed to new exploration in deepwater areas such as the Flemish Pass and South Whale Basins, government believes the industry itself will become even more deeply entrenched in the provincial economy."

The C-NOPB is a joint federal-provincial board which manages the petroleum resources in the

Newfoundland and Labrador offshore area on behalf of the governments of Newfoundland and Labrador and Canada. The board's authority is derived from legislation implementing the 1985 Atlantic Accord between the two governments.

The C-NOPB is required to file an annual report with the federal and provincial ministers under the provisions of the Canada-Newfoundland Atlantic Accord Implementation Acts. Copies of the report may be obtained from the C-NOPB, (709) 778-1400 or on their website

Media contact: Darrell Mercer, Communications, (709) 729- 5777.

2002 07 22                             2:20 p.m.