HIBERNIA FINAL AGREEMENT SAID TO BE IN SIGHT

Canada's federal government says it expects to complete a final deal by Sept. 1 with four companies for development of Hibernia oil field off Newfoundland. Canadian Energy Minister Jake Epp said progress was made in negotiations in July with the Hibernia group of companies led by Mobil Oil Canada Ltd. Epp said negotiators are close to resolving a major issue involving how much development-related work will be done in Newfoundland.

Aug. 13, 1990

2 min read

Canada's federal government says it expects to complete a final deal by Sept. 1 with four companies for development of Hibernia oil field off Newfoundland.

Canadian Energy Minister Jake Epp said progress was made in negotiations in July with the Hibernia group of companies led by Mobil Oil Canada Ltd. Epp said negotiators are close to resolving a major issue involving how much development-related work will be done in Newfoundland.

Other discussion points include how much of $5.1 billion in development work will take place elsewhere in Canada, tax issues, environmental guidelines, federal guarantees on $1 billion in grants, and guarantees for $1.7 billion in loans for the project. Parliament has not passed legislation approving the federal funding.

The federal minister said he is confident a Sept. 1 deal will be made if progress continues. He said failure to meet that date could delay the project for 6 months to 1 year.

Hibernia, on the Grand Banks, holds estimated reserves of as much as 800 million bbl of oil. Plans call for production at a rate of 110,000 b/d.

COHASSET-PANUKE

Meantime, a Canadian government panel has approved environmental, social, and economic standards for development of Cohasset-Panuke oil fields off Nova Scotia.

Lasmo Nova Scotia Ltd. plans to place the fields on production in 1991.

The approvals were granted by the Cohasset-Panuke Environmental and Socio-Economic Commission. The project still requires technical approval.