Natural Resources
September 7, 2007

Province Approves White Rose Expansion

The Provincial Government has approved the Canada-Newfoundland and Labrador Offshore Petroleum Board�s (C-NLOPB) decision to permit expansion of the White Rose development project to produce an estimated additional 24 million barrels of oil from an area known as South White Rose Extension.

This expansion is part of a potential larger, longer-term White Rose expansion plan that may eventually include undeveloped areas known as North Amethyst and West White Rose for which approval has not yet been sought from the province.

"The application for the White Rose expansion is technically sound and we believe approving this decision is in the best interest of the province to extend the life of this highly-successful development," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "This expansion demonstrates, yet again, the high quality of our offshore petroleum projects and is another positive development for the industry."

Husky Oil, which operates the White Rose development, submitted a Development Plan Amendment (DPA) for the expansion to the C-NLOPB in September 2006. The C-NLOPB provided its Decision Report on the amendment to the Provincial Government on August 7, 2007. The C-NLOPB approved the DPA subject to the condition that the company submit an Environmental Effects Monitoring Program design to the C-NLOPB prior to drilling.

The DPA committed to spend $595 million in capital costs to begin producing the additional oil. The commitments include a new glory hole south of the Sea Rose Floating Production Storage Offloading (FPSO) vessel that will tie back to the existing project infrastructure.

The province is currently in discussions with the proponents regarding the fiscal and other benefits which will apply to this and other potential White Rose development expansions.

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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 09 07                                                    9:50 a.m.

 


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