Chevron to develop Hebron heavy oil project offshore Canada
Chevron Corporation (NYSE:CVX) today announced that its wholly owned subsidiary, Chevron Canada Limited, and its co-venturers have finalized legal agreements with the government of Newfoundland and Labrador to develop the Hebron heavy oil project offshore the east coast of Canada. The Hebron Field is located 210 miles (340 km) offshore the province of Newfoundland and Labrador in 300 feet (92 m) of water. Discovered in 1981, the field is expected to be developed using a gravity-based structure with integrated drilling and production topsides. Hebron contains an estimated 400 million to 700 million barrels of recoverable oil.
"Completion of formal binding agreements with the government of Newfoundland and Labrador represents a major milestone toward the successful development of the Hebron Project," said George Kirkland, executive vice president of Global Upstream and Gas for Chevron.
"The Hebron Project is expected to offer significant benefits to the people of Newfoundland and Labrador, generate a competitive rate of return for Chevron and our partner companies, and provide additional energy supplies for the North American marketplace," said Kirkland.
Chevron Canada Limited has a 26.63 percent working interest and is operator of the Hebron Project. The other partners are ExxonMobil Canada Properties (36.04 percent), Petro-Canada (22.73 percent), StatoilHydro Canada Oil & Gas Inc. (9.7 percent) and Oil and Gas Corporation of Newfoundland and Labrador (4.9 percent).
"The Hebron Project is key to our Canada growth strategy and is one of many projects in our North American portfolio that will allow us to grow our reserves and production," said Gary Luquette, president of Chevron North America Exploration and Production.
"Chevron Canada is contributing to that anticipated growth in Atlantic Canada through our participation in the Hebron Project, through our ongoing financial interest in the Hibernia and Terra Nova offshore oil projects, and through our exploration in the Orphan Basin. Moreover, Chevron Canada is pursuing long-term growth through the development of legacy assets in the Alberta oil sands and Northern Canada."
