First Oil Expected from Terra Nova This Month

Terra Nova missed its first oil production target by only a few weeks. First oil was expected by year-end 2001 but will field is now scheduled to come on stream at the end of January 2002. The cost Newfoundland's second major offshore development is C$2.9 billion ($1.8 billion) which is C$900 million over the original cost target set when the partners approved it in February 1998. The offshore commissioning has been completed and only a few steps remain to introduce hydrocarbons to the platform.

Terra Nova was discovered in 1984 and is located on the Grand Banks of the North Atlantic, 217 miles southeast of St. John's. The field has reserves approaching 370 million barrels and is expected to reach a peak output of 125,000 barrels a day within several months, although the production vessel could pump as much as 150,000 barrels should that volume be approved by regulators. Recent drilling on the far east fault block of the field showed the potential for an another 100 million barrels of reserves.

Partners in the field are Petro-Canada with 34%, ExxonMobil with 22%, Husky Energy Inc. with 12.5%, Norsk Hydro with 15%, Murphy Oil with 12%, Mosbacher Operating Co. with 3.5% percent and ChevronTexaco Corp. with the remaining 1 percent.