Minister releases C-NOPB annual report

Mines and Energy Minister Paul Dicks today released the annual report of the Canada-Newfoundland Offshore Petroleum Board (C-NOPB) for the fiscal year ending March 31, 2000.

The minister said the province�s offshore accomplishments have been significant to date and prospects for future developments are most encouraging.

"The quality of the Hibernia reservoir has exceeded expectations and has proven to be the success we all knew it would be; Terra Nova, our second oil field, will be in production in less than a year; Husky has announced its development proposal for White Rose, and I am optimistic that the Hebron/Ben Nevis Complex will become our fourth development project."

The C-NOPB�s revised estimates of Grand Banks reserves and resources, announced earlier this year, saw net increases amounting to over 30 per cent, including an additional 526 million barrels of oil reserves and resources, 1.1 trillion cubic feet of gas and 53 million barrels of natural gas liquids. The increase is greater than the original Hibernia estimates.

- Recoverable oil resources and reserves jumped from 1.6 to two billion barrels of oil.

- Recoverable natural gas resources shot up from 8.2 to 9.3 trillion cubic feet

- Recoverable natural gas liquids went from 360 to 413 million barrels.

The minister noted that the C-NOPB�s 1999 Call for Bids attracted work expenditure bids of $192 million for five parcels comprising 818,472 hectares, the highest amount bid in any C-NOPB land sale to date.

The 2000 Call for Bids comprised 14 parcels, three located in the Jeanne d�Arc Basin, four in the Carson Bonnition Basin, six in the South Whale Basin and one adjacent to the Newfoundland west coast area. These parcels comprise a total of 2,251,670 hectares.

The minister said the employment benefits from offshore activity are continuing to increase. "More than 2,300 persons were directly employed in petroleum-related activity by year-end 1999," he said. "Expenditures during this period amounted to $1.5 billion, bringing the cumulative total since 1996 to $12.3 billion."

Mr. Dicks said 1999 marked the board�s 15th year of operation and added that he is most pleased with the growth and development that occurred over this time period. "The C-NOPB has moved from exploration to development and production over this time period. It is comprised of a strong board, an excellent management team and a professional and dedicated support staff."

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.

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

2000 07 25                 9:50 a.m.