October 14, 1998
(Mines and Energy)

Minister pleased with the announcement of a third 
shuttle tanker for the province's offshore petroleum industry

Charles J. Furey, Minister of Mines and Energy, says he is pleased with the Penney-Ugland Inc. II announcement earlier today that it has been awarded the contract to build and operate a third shuttle tanker for the transportation of crude oil from the Grand Banks.

Minister Furey stated: "I am pleased with the awarding of this contract to an experienced and capable Newfoundland-owned company. The addition of a tanker service for Terra Nova indicates the continued growth of our petroleum industry. It is also an indication that the Terra Nova project is rapidly progressing and will soon be the second producing oil field offshore Newfoundland. The operation of this tanker will result in more jobs and further spinoff benefits for the people of Newfoundland and Labrador."

This state-of-the-art vessel will be equipped with a well-trained and experienced crew of 50 people, the majority of whom will be Newfoundlanders. "This is another example of how specialized capabilities and skills are being developed right here in the province. This experience contributes to making our workforce internationally competitive," said Furey.

Penny-Ugland Inc. II is a joint venture company, owned by Pennecon Limited of Newfoundland, and the J.J. Ugland Companies of Norway. The shuttle tanker will be chartered by the seven owners of the Terra Nova Development, and will be used to transport crude oil from the Terra Nova oil field. The tanker will have a cargo capacity of 850,000 barrels. It is expected that construction will begin in August 1999 for delivery in August 2000. The vessel will be Canadian registered and will comply with all Canadian laws and regulations.

Media contact: Tara Laing, Director of Communications, (709) 729-4890.

1998 10 14 4:05 p.m.