CANADIAN OFFSHORE OIL FIELD PLANS ADVANCE

Sept. 24, 1990
Canadian operators are moving toward their first offshore field development programs, both off eastern Canada. In quick succession in mid-September a group led by Mobil Oil Canada Ltd. decided to go ahead with the $5.2 billion (Canadian) Hibernia oil field project after Ottawa agreed to provide $95 million in interim financing. The federal government also agreed to provide $2.7 billion in grants and loan guarantees. The financing arrangement has to be approved by Parliament.

Canadian operators are moving toward their first offshore field development programs, both off eastern Canada.

In quick succession in mid-September a group led by Mobil Oil Canada Ltd. decided to go ahead with the $5.2 billion (Canadian) Hibernia oil field project after Ottawa agreed to provide $95 million in interim financing. The federal government also agreed to provide $2.7 billion in grants and loan guarantees.

The financing arrangement has to be approved by Parliament.

In addition, the Lasmo Nova Scotia Ltd.-Nova Scotia Resources Ltd. combine received regulatory approval to develop Cohasset and Panuke oil fields on the Scotian Shelf near tiny Sable Island.

HIBERNIA PROJECT

Construction will begin almost immediately for the Hibernia field development project off Newfoundland.

The field, with estimated reserves of 850-900 million bbl of oil, was discovered in 1979 by Chevron Canada Resources Ltd. It is to produce a peak volume of 110,000 b/d, expected by 1998, after flow begins in October 1996.

Development plans call for a gravity based production platform, including a $1.2 billion concrete base. Work on a construction and assembly site near Bull Arm, Newf., is to begin in October.

Development partners include the federal government, Newfoundland, Mobil, Chevron, Gulf Canada Resources Ltd., and Petro-Canada.

Hibernia lies on the Grand Banks, 193 miles southeast of St. John's, Newf.

COHASSET/PANUKE

The Canada-Nova Scotia Offshore Petroleum Board and federal and Nova Scotia energy ministers approved development of Cohasset and Panuke fields. Further approvals are required.

Lasmo-Nova Scotia Resources expect to produce 30,000 b/d for 6 years via a converted jackup and storage tanker (OGJ, Sept. 10, Newsletter).

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