The Canada-Newfoundland Offshore Petroleum Board has issued a three-year Production Operations Authorization (the POA) to Petro-Canada for the Terra Nova oilfield.

The current Terra Nova POA was due to expire August 30, 2004. The Board decided not to approve Petro-Canada’s application for a new 3-year POA in August, but to give a 90-day extension with specific maintenance requirements. While progress on the outstanding issues had been made by the end of November, some issues remained incomplete. The Board gave a further 60-day extension to January 29, 2005, with the condition that all required work be completed.

“It is important to note that during this period,” explained the Board’s Acting Chair and CEO, Fred Way, “The fundamental safety of the FPSO was not in question. Lloyds Registry, the FPSO certifying authority, did a special audit at the Board’s request in the fall and confirmed the integrity of the facility for safe operations.”

The Board indicated that before it would issue a new POA, it would conduct a follow-up audit. “We have monitored and audited the work required – both onshore and off,” Mr. Way said. “We are now satisfied the required worked has been completed.”

In addition to the Board’s regular audits, maintenance work at Terra Nova will be reviewed quarterly by C-NOPB staff who will also conduct a formal review of maintenance systems at the end of the first year.

See attached backgrounder for POA explanation

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