"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."
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