Chevron to develop Hebron heavy oil off NE Canada

Chevron Canada Ltd. and its coventurers have this summer finalized legal agreements with Newfoundland and Labrador to develop the Hebron heavy oil fields in the Maritimes off Eastern Canada.

By OGJ editors
HOUSTON, Aug. 26 -- Chevron Canada Ltd. and its coventurers have this summer finalized legal agreements with Newfoundland and Labrador to develop the Hebron heavy oil fields in the Maritimes off Eastern Canada.

The complex consists of Hebron, Ben Nevis, and West Ben Nevis fields, which lie in the Jeanne d'Arc basin between Hibernia and Terra Nova production areas on the Grand Banks (see map, OGJ, Feb 14, 2005, p. 32). The complex is 210 miles off Newfoundland and Labrador in 300 ft of water. Hebron was discovered in 1981, but the project was put on hold in 2006 when the operator could not reach an agreement with the government of Newfoundland and Labrador.

Recovering 19-21° heavy oil in the area's harsh conditions presents a challenge, and the reservoir characteristics are technically complex and demanding. Chevron Canada, operator of the complex, said the field is "expected to be developed using a gravity-based structure with integrated drilling and production topsides."

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) in 2006 estimated that the Hebron complex contains 731 million bbl of proved and probable oil resources, about 30 million bbl of natural gas liquids, and 429 bcf of natural gas, based on geologic, petrophysical, and reservoir simulation studies and drilling results (OGJ, June 19, 2006, p. 29) and (July 3, 2006, p. 52). Chevron estimates recoverable oil to be in the 400-700 million bbl range.

Chevron Canada holds a 26.63% working interest in the project. Other partners are ExxonMobil Canada Properties 36.04%, Petro-Canada 22.73%, StatoilHydro Canada Oil & Gas Inc. 9.7%, and Oil & Gas Corp. of Newfoundland and Labrador 4.9%.

Chevron Canada holds an ongoing financial interest also in the Hibernia and Terra Nova offshore oil projects, and in exploration in the Orphan basin.

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