"We are pleased to have agreement among the owner companies," said Alex Archila, president, Chevron Canada Resources. "However, a significant amount of work must be done before a decision can be made to seek regulatory approvals and determine how best to proceed with development."
Hebron is a challenging field, and factors such as its heavy oil and complex reservoirs have the potential to add significant cost and economic risk. "We continue to work towards addressing the technical and economic challenges of developing this heavy oil field," added Archila. In comparison with lighter crudes, heavy crude reservoirs require more wells to be drilled to achieve the same oil recovery and oil production rates. Additionally, Hebron's heavy crude would sell for about 15 to 20 percent per barrel less than light crude because it is more costly to refine, and fewer refineries are set up to handle it.
At this time, the joint evaluation will initially focus on the Gravity Based Structure (GBS) concept and will include a detailed examination of factors such as construction methodology, cost of construction, and the availability of construction materials.
Chevron Canada Resources is the designated operator for Hebron, with a 28 percent working interest. The other Hebron owners are ExxonMobil Canada Properties (37.9 percent), Petro-Canada (23.9 percent), and Norsk Hydro Canada Oil & Gas Inc. (10.2 percent).
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