ST. JOHN'S, Newfoundland and Labrador -- Newfoundland and Labrador Premier Danny Williams held a press conference in St. John's to announced the province has signed a memorandum of understanding with industry partners to develop the Hebron-Ben Nevis field. Williams was joined by the Honorable Kathy Dunderdale, Minister of Natural Resources.
"Today marks a historic day in Newfoundland and Labrador, as we enter into a new era of offshore oil development with unprecedented benefits to the people of our province including taking real and meaningful ownership of our resources in the form of equity and a new super royalty regime," Williams said. "Step by step, we are becoming masters of our own house."
The province has been wrangling for some time over royalties distribution from this potential project with operators ExxonMobil Canada, Chevron Canada, Petro-Canada, and Norsk Hydro Canada.
"Our government is pleased that as a result of hard work and cooperation between the industry partners and our negotiating team, we have signed a historic MoU for this province which will assist Newfoundland and Labrador in achieving the economic self-reliance to which we have long aspired," Williams said.
"The road to this day has not been an easy one; however, it has been well worth the wait," Williams said.
The Hebron-Ben Nevis field, discovered in 1981, lies 350 km (217 mi) offshore. The Canada-Newfoundland and Labrador Offshore Petroleum Board estimates recoverable reserves at 700 MMbbl of recoverable oil.
Hebron will be the fourth offshore oil development for the province.