Hebron agreement signed

April 6, 2005, 16:00 CEST

Hydro and it partners in the Hebron licence have signed a unitization and joint-operating agreement. The accord will advance joint evaluation of the Hebron, Ben Nevis and West Ben Nevis oil fields offshore Newfoundland, Canada.

"We are satisfied to have reached an agreement," says Torgeir Opdahl, vice president, Hydro Canada Oil & Gas, adding "the joint-operating agreement regulates licence cooperation and creates an important basis for proceeding with development plans."

Hebron is a challenging field with heavy oil and complex reservoirs. The joint evaluation will initially focus on a gravity based structure (GBS) .

"We are working to find the best technical and economic solutions, but a significant amount of work must be done before a decision can be made to submit a plan for development and operation (PDO) to the authorities," says the operator, Chevron Canada Resources.

Hydro has been active in Canada since 1996, and is a partner in the two fields currently producing offshore Newfoundland - Hibernia and Terra Nova.

Partners in Hebron are:

Chevron Canada Resources (operator) (28.0 %)
ExxonMobil Canada Properties (37.9 %)
Petro-Canada (23.9 %)
Norsk Hydro Canada Oil & Gas (10.2 %)