Natural Resources
April 2, 2007 

Province Approves Production Rate Increase for White Rose

The Provincial Government has approved an increase in annual maximum production for the White Rose oil field that could see production increase from 36.5 million barrels per year to up to 50 million barrels. 

�This shows the continued growing potential of our offshore,� said the Honourable Kathy Dunderdale, Minister of Natural Resources.  �This is the fourth volume increase for our offshore projects, which demonstrates that all three projects are performing well for the benefit of both the operators and the province.� 

The proponent of the White Rose project submitted an application to the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) in September for an annual oil production rate increase.

The C-NLOPB requested additional information from the proponent to support its application and provided a decision report to the provincial and federal governments on March 2, 2007.  The C-NLOPB approved a production increase of up to 50 million barrels annually, subject to several technical
conditions that relate to safety, conservation and production control.  The province has reviewed these conditions and is satisfied they are appropriate in this case.

The province�s review of the application and the C-NLOPB�s assessment indicate that the production increase approved will not impact the life of the field, require major modifications to the production facilities, affect the benefits plan or raise any new environmental issues.

�We are pleased to see daily production increase at White Rose, which is a testament to the value and strength of the project,� said Minister Dunderdale.  �The production increase will also mean research and development spending will happen earlier in the life of the project as the company�s commitment to invest in research and development is tied directly to revenue.�

The production rate increase will occur in two phases.  The proponent can increase production to 45.6 million barrels per year initially, with further increases being done in conjunction with the C-NLOPB once the chief safety officer and chief conservation officer are satisfied that the necessary controls are in place.

This is the second approval of significance by the province for the proponents of the White Rose project in recent weeks.  The company asked for special approval to dredge an additional glory hole, which is an indentation in the ocean floor that protects drilling equipment from icebergs.  This allows the company to take advantage of equipment available to it now to advance potential subsea installations.

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241
tracybarron@gov.nl.ca

2007 04 02                                                        12:30 p.m.