Terra Nova Starts Producing

Petro-Canada, operator of the Terra Nova oil field offshore Newfoundland, said Thursday it continues to bring the field's first production wells on stream using the Terra Nova FPSO.

Production commenced on January 20, 2002, following completion of engineering, construction and commissioning of the Terra Nova FPSO. Flowrate from the first well reached 35,000 barrels/day and a second well was opened. The flowrate from Terra Nova reached 75,000 barrels/day on January 23. Although first oil is on board the vessel, Petro-Canada says it is expected that production may be intermittent in the coming weeks as systems are fully-tested and more wells brought on stream to reach a planned production rate of 125,000 barrels of oil daily. Terra Nova is expected to produce for 15 to 18 years. The forecast pre-production capital cost of the Terra Nova development is CAD 2.8 billion. Petro-Canada has a 33.99% interest in the field. Other stakeholders are ExxonMobil with 22%, Husky Oil with 12.51%, Norsk Hydro with 15%, Murphy Oil with 12%, Mosbacher Operations Ltd. with 3.5%, and ChevronTexaco with the remaining 1%.