CNOPB Authorizes Terra Nova FPSO to Resume Production

The C-NOPB has authorized the Terra Nova FPSO to resume production.

On December 1, 2004, the C-NOPB placed a condition on the Terra Nova Production Operations Authorization (POA) that until certain outstanding maintenance work was complete; the FPSO could not produce hydrocarbons.

"Over the last two weeks, Petro-Canada has completed work on the safety items we had identified as outstanding during previous audits," explained C-NOPB Chief Safety Officer, Howard Pike. "The integrity of the facility as a safe installation was not in question. However, these outstanding maintenance issues needed to be done for the FPSO to continue meeting the high standard of safety we expect here in the Newfoundland & Labrador offshore area."

In order for any oil and gas activity to go ahead in the Newfoundland & Labrador offshore area, permission, in the form of authorizations, must be granted by the C-NOPB. The Terra Nova POA, which gave them approval to operate on the field, was due to expire at the end of August 2004. At that time, the Board decided not to approve Petro-Canada's application for a 3-year POA but to give a 90-day extension with specific work requirements. While significant progress on the outstanding issues had been made at the end of November, a number of issues remained incomplete. The Board gave a further 60-day extension to January 30, 2005, with the condition that no production take place until the required maintenance was completed. That condition has been met. The C-NOPB will conduct a follow-up audit before a new POA is issued.