Jan. 4, 2013
St. John's, NL - On December 31, 2012, the co-venturers of the Hebron Project reached official project sanction, ensuring the construction and fabrication of the Hebron platform will proceed and enabling future drilling and production of the Hebron field.
"Project sanction marks a significant milestone for the Hebron Project," said Geoff Parker, Hebron senior project manager and vice president of ExxonMobil Canada Properties, operator of the project. "Construction of the gravity-based structure has already begun at the Bull Arm fabrication site, and we anticipate commencing fabrication of the topsides in 2013. Co-venturer sanction confirms we will continue with this significant project for the province."
Investments being made by the Hebron co-venturers are yielding significant benefits for the province of Newfoundland and Labrador. The project will provide employment opportunities for thousands of people. Project-related employment in the province is expected to peak at 3,000-3,500 people, including contractors, subcontractors and skilled labour. The royalties and taxes generated from the Hebron Project will help fund provincial infrastructure, social programs, and services for the lifespan of the project.
Capital cost for the project, which is expected to begin oil production around the end of 2017, is estimated at $14 billion. Front-end engineering and design was completed last year and significant progress has been achieved on detailed engineering. Current estimates reflect advanced project definition and increased construction and drilling costs in the current market.
The Hebron field is estimated to produce more than 700 million barrels of recoverable resources. The platform is being designed for an oil production rate of 150,000 barrels of oil per day.
"We look forward to advancing this important project that will bring jobs and revenue to the province," said Parker.
The Hebron Project co-venturers are: ExxonMobil Canada Properties (operator), Chevron Canada Limited, Suncor Energy Inc., Statoil Canada and Nalcor Energy Oil and Gas.