Hebron oil deal to be signed Wednesday, N.L. government says
The government of Newfoundland and Labrador has announced the much-anticipated Hebron offshore oil deal will be signed Wednesday in St. John's.
Premier Danny Williams, Natural Resources Minister Kathy Dunderdale and representatives from the consortium of oil companies involved in the project will sign a final agreement at the Fairmont Hotel at noon, according to a press release from the Office of the Premier Tuesday.
The memorandum of understanding on the $5-billion project, announced in August 2007, expires on Thursday. The memorandum was reached after a fierce public battle between Williams and the companies over royalties and an equity stake in the project for the province.
The Newfoundland and Labrador government has said it expects Hebron, with more than 700 million recoverable barrels of oil, to generate government revenues of about $16 billion over a projected 25-year lifespan.
Chevron Canada, with a 28-per-cent stake in Hebron, is its designated operator, according to the memorandum. ExxonMobil Canada has, at 37.9 per cent, the greatest ownership stake. Petro-Canada, and Norsk Hydro Canada Oil & Gas are the remaining partners.
Rumours about a final deal have been circulating since June, when Chevron Canada Resources, the operator of the Hebron project, notified leaseholders of its office space in St. John's that it needed the space back.
The Hebron field, which consists of the Hebron, Ben Nevis and West Ben Nevis fields, was discovered in 1981 and is located offshore Newfoundland's Jeanne d'Arc basin, about 350 kilometres out to sea from St. John's.
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