GENERAL INTEREST / Agra Inc welcomes Terra Nova Offshore Oil Project
Total Contract Value To AGRA of Approximately $330 Million
OAKVILLE, Ont., Feb. 17 /CNW/ - AGRA Inc. President and CEO Alex Taylor
today welcomed the announcement by the Terra Nova Development proponents that
the Terra Nova oil field project, located 350 kilometres off the Newfoundland
coast, has been sanctioned to proceed with construction. First oil is targeted
for late 2000.
AGRA's Newfoundland-based subsidiary AGRA ShawMont and its 50/50 joint
partner Brown & Root Inc. (together known as SBR Offshore) will serve within
the overall Terra Nova Alliance team, as engineers and project managers for
the project. They will also be responsible for procurement services related to
the steel floating production, storage and off loading (FPSO) vessel and the
topsides operations and equipment facilities.
The overall contract value to AGRA for the Terra Nova project is expected
to be approximately $330 million. With today's project sanctioning, AGRA will
add another $200 million to its backlog in addition to $130 million related to
front end engineering and procurement work now in progress with respect to the
project.
Terra Nova is being developed on an ''alliance basis'' whereby the
project owners and other alliance members will work together to maximize the
integration, management and full field life value of the project. The
alliancing approach encourages innovation and involves the sharing of risk and
reward among the partners to ensure the highest standards of quality and
on-time project delivery for the owner.
The owners of the Terra Nova project are Petro Canada - operator (29%),
Mobil Oil Canada Properties (22%), Husky Oil Operations Ltd. (17.5%), Norsk
Hydro Canada Oil and Gas (15%), Murphy Oil Company Ltd.(12%) and Mosbacher
Operating Ltd. (3.5%) and Chevron Canada Resources (1%).
AGRA ShawMont and its parent company AGRA Monenco are wholly owned
subsidiaries of AGRA Inc., one of Canada's largest international engineering,
construction, environment and technology corporations. AGRA employs 5,000
people and operates 155 offices in 22 countries. AGRA's stock is traded on the
Toronto and Montreal stock exchanges under the trading symbol AGR. |
