Hebron Partners Suspend Negotiations
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."
Operates 13 Offshore Rigs
- ExxonMobil Says Julia, Hadrian South Operations Back To Normal After Nate (Oct 10)
- Iraq's Talks with Exxon on Southern Oilfields in Final Stages-Minister (Oct 09)
- U.S. Gulf Oil Producers Start Evacuating Staff Ahead of Tropical Storm Nate (Oct 05)
Company: Norsk Hydro ASA more info
Operates 1 Offshore Rigs
- Sentry Petroleum Appoints Former Norsk Hydro Analyst to Board of Directors (Dec 29)
- Hydro Under Investigation for Former Libya Oil Operations (Oct 07)
- SeaBird First Contract Award for SeaBed Operations (Apr 28)
Company: Chevron Corporation more info
- Chevron Approves New Tech Investment To Raise Output At North Sea Field (Oct 20)
- Canada's Keyera Signs Pact With Chevron To Transport, Store NGL (Oct 10)
- Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
Company: Petro-Canada more info
- C-NLOPB Approves Hebron Application (May 31)
- Petro-Canada to Fire Up Syrian Gas Production Soon (Apr 06)
- Faroe: Possible Hydrocarbons Found in North Sea Well (Mar 23)