Chevron group suspends Hebron development

Chevron Canada Ltd. and partners have agreed to suspend negotiations with the government of Newfoundland and Labrador on development of offshore Hebron oil field.

April 3, 2006

By OGJ editors
HOUSTON, Apr. 3 -- Chevron Canada Ltd. and partners have agreed to suspend negotiations with the government of Newfoundland and Labrador on development of offshore Hebron oil field.

"Significant and fundamental gaps remain on fiscal terms and benefits that would enable the project to proceed in a viable manner," said Chevron Canada Pres. Alex Archila.

The partners previously deferred development of the field, which lies 350 km off Newfoundland and Labrador, citing complex and demanding reservoir characteristics (OGJ Online, Feb. 13, 2002).

"Hebron poses a number of challenges due to the high degree of technical complexity associated with recovering heavy oil in a harsh marine environment," Archila said.

Field activities might revive if a definitive agreement is reached with the provincial government, Chevron said.

Hebron partners are Chevron Canada, operator, 28%; ExxonMobil Canada Properties 37.9%; Petro-Canada 23.9%; and Norsk Hydro Canada Oil & Gas Inc. 10.2%.