HOUSTON, Feb. 13 -- Chevron Canada Resources Ltd. and its partners have decided to stop evaluating the Hebron project off the eastern coast of Canada. They have been evaluating the project for 2 years.
Chevron Canada, a unit of ExxonMobil Corp., the Canadian arm of Norwegian company Norsk Hydro AS, and Petro-Canada have determined Hebron's reservoir characteristics are more complex and demanding than those of the nearby Hibernia and Terra Nova developments.
"Up to 75% of the recoverable reserves are heavier oil, making offshore production slower and more costly," said Chevron Canada. Current technology would require a greater number of wells to be drilled which would make the project uneconomic.
"While we cannot find a way to economically develop it now, the resource base is a good one that may have longer range development potential," said Chevron Canada Pres. Jim Simpson.
