Plan in Place to Resume Production at Terra Nova

The Canada-Newfoundland Offshore Petroleum Board has advised Petro-Canada that it has completed its investigation and formally lifted the suspension of production, once our recommended mitigation actions are in place. Production was shut down on November 21, 2004, following the discharge of oily water from the Terra Nova Floating, Production, Storage and Offloading (FPSO) platform.

However, the current production shutdown will be extended for approximately one week to ten days to allow the completion of additional maintenance work. The C-NOPB requires this work as part of the renewal process for Terra Nova's Production Operations Authorization (POA). This authorization was due to expire on November 30th but has now been extended to the end of January, 2005.

"Petro-Canada is committed to resuming production in a safe and environmentally responsible manner," said Gordon Carrick, Vice-President, East Coast. "We have implemented a number of corrective measures arising from the November 21 incident, including equipment upgrades and process improvements. These are detailed in the preliminary report we submitted to the C-NOPB on November 27, 2004."

"Over the past week, we have carried out some maintenance work and will now take a few extra days to complete other outstanding items consistent with our safety management plan and ongoing maintenance activities," said Carrick. "The safety of our personnel remains our top priority. We recognize the heightened awareness of all of our operations as a result of last week's incident. We know we have to rebuild confidence in our operation, and extending the shutdown is part of that process. Once we have completed this work and clearly satisfied ourselves and our partners that we are ready to re-start, our intent is to restore production to pre-shutdown levels of 160 000 barrels per day."

"We have examined all of our planned maintenance work, and are focusing our efforts on certain safety devices that are due for recertification now, or will become due in the next several months. We have done so in consultation with the C-NOPB," Carrick added.