Offshore staff
(Calgary)-Chevron Canada Ltd. announced a decision to suspend negotiations with the government of Newfoundland and Labrador and demobilize the Hebron project. The announcement was made on behalf of Chevron's partners in the project - ExxonMobil Canada, Petro-Canada, and Norsk Hydro Canada Oil & Gas Inc. - and marks at least a temporary end to the challenging offshore endeavor.
Alex Archila, president of Chevron Canada Ltd., said "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 visible manner."
In addition to fiscal gaps, the Hebron field presents a number of challenging technical issues. Archila referred to "a number of challenges due to the high degree of technical complexity associated with recovering heavy oil in a harsh marine environment."
The Hebron field is located 350 km offshore the province of Newfoundland and Labrador, and Chevron Canada Ltd. is the designated operator with a 28% working interest. ExxonMobil Canada has a 37.9% share, Petro-Canada has 23.9% and Norsk Hydro Canada Oil & Gas has 10.2%.
Despite this suspension of current activities, Archila remains optimistic. "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."
04/03/2006
