The pace of construction is increasing for the $5.2 billion (Canadian) Hibernia oil field development project off Newfoundland with a new partner close to signing on.
Texaco Inc. is reported ready to pick up a 25% interest in the project within a month.
Construction activity for offshore systems was cut 50% last February when Gulf Canada Resources Inc. said it planned to withdraw from its 25% interest in Hibernia. Since then, remaining interest owners Mobil Oil Canada Ltd., Chevron Canada Resources Ltd., and Petro-Canada have been seeking new partners. The effort has focused on Texaco with Canadian Energy Minister Jake Epp playing a role in talks.
There are unconfirmed reports that Texaco participation will be announced early in November. Ottawa would pay Texaco $200 million cash incentive to join, a sum about equal to the value of tax credits the Canadian partners will receive.
Texaco has declined comment on negotiations and its possible participation.
Hibernia's construction work force has risen to 850 from a low of 600. A spokesman for Hibernia Management & Development Co., project manager, said a steady increase in the work force is planned.
Construction of a concrete gravity base for the production platform is scheduled to resume this month, Work on topsides is planned in November.
Gulf continues to pay its share of project costs but says it expects to meet all commitments by yearend.
Project spending was cut sharply to $1.5 million/day after Gulf's withdrawal announcement, and 800 workers were laid off. Hibernia spending totaled $727 million to the end of July.
The project is scheduled for completion in 1997. Construction work began onshore in 1990 with Ottawa backing the project with $2.7 billion in cash and loan guarantees.
Hibernia is scheduled to produce about 110,000 b/d of oil.
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