Hebron Partners Suspend Negotiations

East Canadian Offshore Oilfields
(Click to Enlarge)

Jeanne D'Arc Basin, Canada
(Click to Enlarge)
Citing governmental and technical roadblocks, Chevron said that negotiations with the Government of Newfoundland and Labrador to develop the Hebron field have been suspended. The heavy oil deposit is located approximately 350 kilometers off the province's coast in the Jeanne d'Arc Basin.

"We have worked tirelessly with the Government of Newfoundland and Labrador, especially during the past year, to find ways to move the Hebron project forward, but significant and fundamental gaps remain on fiscal terms and benefits that would enable the project to proceed in a viable manner," said Alex Archila, presdent of Chevron Canada.

"We are disappointed that we have not been able to reach an agreement with the government."

Chevron, the designated operator with a 28-percent working interest, made the announcement on behalf of its Hebron co-venturers: ExxonMobil (37.9 percent), Petro-Canada (23.9 percent), and Norsk Hydro (10.2 percent). The Hebron project team has been demobilized as a result of the logjam.

"Hebron poses a number of challenges due to the high degree of technical complexity associated with recovering heavy oil in a harsh marine environment," Archila said, adding that talks could resume at some point. "While activities are suspended at this time, the co-venturers remain positive that activities could proceed at a future date with the conclusion of a definitive agreement with the Government of Newfoundland and Labrador."

Related Companies
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Regulatory Compliance Specialist
Expertise: HSE Manager / Advisor|Offshore Position Surveying|Regulatory Compliance
Location: Houston, TX
Shipping and Receiving Specialist
Expertise: Logistics Management|Port Operations
Location: College Station, TX
Safety and Environmental Management System Specialist (SEMS)
Expertise: Environmental, Safety & Training|Regulatory Compliance|Safety Engineering
Location: Houston, TX
search for more jobs

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours