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HIBERNIA MOVES FORWARD -- CHEVRON INCREASES OWNERSHIP

 TORONTO, Jan. 15 /PRNewswire/ -- Chevron Canada Resources announced today it has agreed to obtain an additional 5 percent interest in the Hibernia oil development project offshore Newfoundland.
 Chevron joins Murphy Oil Ltd., the Government of Canada and Mobil Oil Canada in agreeing to jointly acquire the 25 percent working interest in the Hibernia project formerly held by Gulf Canada Resources. This action will return the Hibernia project to a secure financial footing, and construction will now move forward on schedule to meet the 1997 start-up date.
 Jim Baroffio, president of Chevron Canada Resources, said, "Our increased ownership in the Hibernia project is a very good investment in the long-term future of Chevron and Canada. Hibernia production will significantly increase Chevron's Canadian production and reserve base and diversify our portfolio of properties that adds value to our company."
 Baroffio added, "Hibernia is the realization of a dream for Newfoundland and represents the threshold of a prosperous new era for Canadian energy development. Offshore Atlantic Canada is destined to become a major producing area in North America and puts Canada at the leading edge of offshore technology.
 "This project will increase the potential of the entire area and pave the way for a series of East Coast developments providing for our long-term energy needs and for continuing economic growth."
 Baroffio also noted, "The Hibernia project creates immense economic and industrial benefits to Newfoundland and the rest of Canada. It is one of the largest and most technically complex petroleum projects in the world and is expected to provide a major impetus in strengthening existing Canadian capabilities and fostering new ones."
 To date, total project expenditures are about $1 billion with a total Canadian content of approximately 80 percent, well in excess of the 55 percent to 60 percent target.
 As well, of the 7.5 million person hours of employment to date, 80 percent is supplied by Canadians, well in excess of the 66 percent target.
 Baroffio added, "I want to express my personal gratitude to all of the people from government, and partner companies, the business community and our many friends in Newfoundland and across the country who supported the Hibernia project since Chevron's discovery of the field in 1979.
 "We look forward to the Government of Canada and Murphy Oil as partners and to sharing the success of the project with them. We are very excited about this project and the prospect of building a strong, viable offshore industry."
 Mobil Oil Canada Ltd. has also agreed to increase its holdings by 5 percent for a total share of 33.1 percent. Petro-Canada retains its 25 percent. Murphy Oil Corp. has agreed to acquire a 6 1/2 percent interest after completion of legal agreements. The Government of Canada will take the remaining 8 1/2 percent interest equity share.
 Chevron's share of Hibernia production will be in the range of 30,000-35,000 barrels per day. This volume represents about 40 percent of Chevron's year-end 1992 Canadian production of 70,000 barrels of crude and liquids per day.
 Chevron Canada Resources is headquartered in Calgary, Alberta, and is a wholly owned subsidiary of Chevron Corp. (NYSE: CHV).
 BACKGROUND:
 1965 Seismic testing and exploratory drilling showed that
 large amounts of oil lay trapped beneath the ocean
 floor of the Grand Banks, offshore Newfoundland.
 1979 The Hibernia P-15 wildcat discovery made by Chevron
 Canada Resources tested oil 300 kilometres southeast of
 St. John's.
 1980 - Nine delineation wells drilled; eight tested oil.
 1984
 1985 The partners (Mobil, Petro-Canada, Gulf, Chevron, and
 Columbia Development) begin negotiations with
 Ottawa and Newfoundland to develop the Hibernia field.
 1988 Partners sign Statement of Principles with Governments
 of Canada and Newfoundland. Chevron purchases Columbia
 Development's interest in Hibernia.
 1990 Partners sign Legal Agreements with Governments of
 Canada and Newfoundland.
 1992 Gulf announces its intentions to withdraw from the
 partnership. Remaining partners express confidence in
 the project and begin an 11-month search around the
 world for a replacement company.
 1993 The Government of Canada and Murphy Oil agree to become
 partners in Hibernia. Mobil and Chevron each agree to
 increase their interest by 5 percent.
 FUTURE:
 1997 The first barrel of Hibernia crude is produced.
 -0- 1/15/93
 /CONTACT: Charlie Stewart of Chevron Canada Resources, 403-234-5656/
 (CHV)


CO: Chevron Canada Resources; Mobil Oil Canada Ltd., Petro-Canada ST: Ontario IN: OIL SU:

LS-EH -- LA028 -- 5555 01/15/93 17:11 EST
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Date:Jan 15, 1993
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