The Canada-Newfoundland and Labrador Offshore Petroleum Board
said on Thursday it approved plans by an Exxon Mobil Corp-led group
to develop the Hebron oil field offshore Newfoundland, Reuters
It said the decision means Exxon (
) and its partners can proceed with development of the 707-million
barrel field, which will be the province's fourth offshore oil
Reuters noted the cost of the project, which will use a heavy
gravity-based structure sitting on the seabed because of the
icebergs that sail through the area, was estimated in 2008 to range
between C$5 billion (US$4.85 billion) and C$7 billion. The field is
operated by ExxonMobil, which has a 36% interest in the project.
ExxonMobil took control of the project from Chevron in October
The Hebron field lies under 92 meters (300 feet) of water 350
kilometers (217 miles) southeast of St. John's, Newfoundland and
contains heavy oil. It was discovered in 1981, but development was
delayed by low oil prices and squabbles over royalty rates with the
The facility will produce up to 150,000 barrels per day and may
be increased to handle as much as 180,000 bpd according to
Exxon could not be immediately reached for comment.
The other joint venture partners are Chevron Corp (
), with a 26.7% interest; Suncor Energy Inc (SU.TO), with 22.7%;
Statoil ASA (
), with 9.7%; and the provincially owned Energy Corporation of
Newfoundland and Labrador, which has a 4.9% stake.