(St. John’s, NL – June 10, 2021) The following is a statement from Noia CEO Charlene Johnson on today’s updates regarding negotiations about the future of the Terra Nova Floating Production Storage and Offloading (FPSO) vessel.
“This situation impacts hundreds of Newfoundlanders and Labradorians who work both offshore and onshore for the operating partners. Those impacts extend to thousands of people who are involved in the supply and service sector such as helicopters, supply vessels, environmental monitoring, human resources, catering, maintenance, health, safety and medical services and on and on. Noia members in the supply and service sector were hoping for positive news on the Terra Nova Asset Life Extension Project and today’s announcement will be difficult for them. If your household is not directly impacted, you will have family and friends who are, and I feel horrible today for the people affected and wondering what happens next and where they go from here.
“I encourage all the parties to continue to try and find a resolution that returns the Terra Nova FPSO offshore. In January, an MOU between the parties was announced and it seemed a deal was a strong possibility. We must get back to that place. This project has provided billions of dollars in revenue to both the operating partners and governments, and I do not believe anyone can or should simply walk away. I once again implore the provincial government and the operating partners to quickly find a solution.
“Every effort must be made to ensure we maximize resource recovery and value for our province, as per the mandate of the Canada-Newfoundland and Labrador Offshore Petroleum Board. The Terra Nova field has produced approximately 425 million barrels of oil and we know the asset life extension project was expected to produce another 80 million. We should not strand those 80 million barrels. That appears to be a strong possibility and our natural resource development projects should not end in this manner, leaving resources and people stranded.”
Noia has commissioned a study to examine the economic impacts of the Terra Nova FPSO asset life extension program. The results of that economic impact report will be released in the coming days and preliminary results show that at a minimum, benefits to the province equal upwards of $1 billion over the ten-year life of the project.
The Newfoundland and Labrador Oil and Gas Industries Association (Noia) was founded in 1977 to represent the supply and service sector of the offshore oil and gas industry. Today, Noia represents approximately 460 member organizations worldwide which are involved in, or benefit from, the oil and gas industry of Newfoundland and Labrador. Noia members are a diverse representation of businesses that range from offshore supply boats and helicopters, health and safety equipment and training, engineering solutions and fabricators to law firms and human resource agencies.