Contradictory statements over a timetable to mothball Hibernia oil field development project off Newfoundland have cast new doubts on the future of the $5.2 billion program.
Petro-Canada Chairman Bill Hopper said in a Washington speech the project will be shelved in 60 days unless a new partner is found to replace Gulf Canada Ltd. Gulf, a 25% partner, withdrew because it could no longer afford the cost (OGJ, Feb. 17, p. 29).
"The partners are basically on a 60 day countdown," Hopper said. "Within 60 days, if we don't find somebody to step into Gulf's shoes, we'll move toward mothballing the project."
Petro-Canada wants to reduce its 25% Hibernia share to 15% if a buyer can be found. Hopper said if Hibernia is shelved Petro-Canada will almost certainly proceed with development of the smaller Terra Nova field, also off Newfoundland (OGJ, Jan. 20, p. 18).
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Spokesmen for other Hibernia partners Chevron Canada Resources Ltd. and Mobil Oil Canada Ltd. said there is no deadline to mothball the project within 60 days.
Mobil said it supports the project and there is no firm 60 day deadline.
"It was an informal period to give us some space," said Mobil spokesman Graeme Connell. "What I think we're saying now is the partners are working together to market the outstanding share. That's the focus."
Charles Stewart, a Hibernia group spokesman, said Hopper's statement was incorrect.
"He's wrong. You can't say much more than that," Stewart said.
The partners indicated the 60 days relates to a review of marketing efforts in that period.
Federal Energy Minister Jake Epp said there is no 60 day deadline for Hibernia.
He said two consulting firms, Goldman Sachs and Wood Gundy, have been hired and have started a campaign to market Hibernia. And several companies have expressed interest in buying into Hibernia.
Ottawa is contributing $2.7 billion in grants and loan guarantees.
Epp said a decision on Hibernia's future may have to be made as early as October.
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