The Canada-Newfoundland Offshore Petroleum Board today released its decision respecting the application by the Terra Nova Alliance to use alternate standards for the selection of structural materials and the fabrication of the topsides modules for the Terra Nova Production System.

The Board has approved TNA’s application to apply the standards for welding and fabrication developed in the U.K. and currently employed in the construction of installations for use in the North Sea and other areas, to the fabrication of the two topsides modules to be built at Bull Arm as well as to the two modules that will be fabricated at the BARMAC facility in Ardersier, Scotland.

Terra Nova Alliance’s application also sought approval to specify a grade of high strength steel plate for the topsides modules that is not produced in Canada in the range of thicknesses required. Steel of this grade, which was also used in the Hibernia project, is produced elsewhere in the required thicknesses by mills having a proven track record for quality. The Board approved this substitution as well.

In both cases, the proposed specifications equaled or exceeded the requirements of Canadian standards, and were endorsed by Lloyd’s Register, the Certifying Authority for the Terra Nova project.

In releasing the C-NOPB decision, Chairman Hal Stanley said that the Board’s principal concern is the safety of workers in the offshore industry, and it is satisfied that there is no compromise whatsoever on safety standards in its decision.

Mr. Stanley noted that the Atlantic Accord Acts provided for the substitution of standards and specifications, and in this case such substitution will allow for greater flexibility in managing the work with associated savings in production costs, while equaling or exceeding Canadian requirements and quality assurance procedures. Local and other Canadian suppliers and contractors will not be disadvantaged by this decision in competing for on-site or off-site work. The same amount of structural welding will be required at the Bull Arm site and the work will be done by qualified Newfoundland welders. In addition, the work force at the Bull Arm facility will benefit from the experience gained in working with international standards, and this will place the Bull Arm facility in a favourable position to compete for work both in the Canadian offshore area and internationally.

In considering this application, the Board consulted with key affected parties, including the Canadian Welding Bureau, the Association of Professional Engineers and Geoscientists of Newfoundland, and the Petroleum Development Association, the organization which represents unionized workers at Bull Arm. Specific concerns raised in the consultation process have been addressed, and the Board’s responses to these concerns are being communicated directly to the parties involved.

The C-NOPB Chairman emphasized that this decision by the Board applies only to the fabrication of structural steel for the Terra Nova project. Any proponent seeking acceptance of alternative codes or standards in the future will be required to submit a new application which will be judged on its own merits.

MEDIA REFERENCES:
C-NOPB Spokesperson:
H.H. Stanley, Chairman
(709)778-1456

Media Liason:
Edsel Bonnell
Bonnell Public Relations
(709)778-1400
(709)834-9136 (after hours & weekends)

ATTACHMENTS (2)
C-NOPB’S Regulatory Query Process
The Role of the Certifying Authority