Terra Nova starts producing

January 25, 2002, 00:00 CET

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 Floating, Production, Storage and Offloading Vessel (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.

Terra Nova's owners are: operator Petro-Canada (33.99 percent); ExxonMobil Canada (22 percent); Norsk Hydro Canada Oil & Gas Inc. (15 percent); Husky Oil Operations Ltd. (12.51 percent); Murphy Oil Company Ltd. (12 percent); Mosbacher Operating Ltd. (3.5 percent); and Chevron Canada Resources (1 percent).