August 20, 2008
Chevron Announces Agreements to Develop the Hebron Heavy Oil Project Offshore Newfoundland and Labrador, Canada
Chevron Corporation (NYSE:CVX) today announced that its wholly owned subsidiary, Chevron Canada Limited, and its co-venturers have finalized legal agreements with the government of Newfoundland and Labrador to develop the Hebron heavy oil project offshore the east coast of Canada.
The Hebron Field is located 210 miles (340 km) offshore the province of Newfoundland and Labrador in 300 feet (92 m) of water. Discovered in 1981, the field is expected to be developed using a gravity-based structure with integrated drilling and production topsides. Hebron contains an estimated 400 million to 700 million barrels of recoverable oil.
"Completion of formal binding agreements with the government of Newfoundland and Labrador represents a major milestone toward the successful development of the Hebron Project," said George Kirkland, executive vice president of Global Upstream and Gas for Chevron.
"The Hebron Project is expected to offer significant benefits to the people of Newfoundland and Labrador, generate a competitive rate of return for Chevron and our partner companies, and provide additional energy supplies for the North American marketplace," said Kirkland.
Chevron Canada Limited has a 26.63 percent working interest and is operator of the Hebron Project. The other partners are ExxonMobil Canada Properties (36.04 percent), Petro-Canada (22.73 percent), StatoilHydro Canada Oil & Gas Inc. (9.7 percent) and Oil and Gas Corporation of Newfoundland and Labrador (4.9 percent).
"The Hebron Project is key to our Canada growth strategy and is one of many projects in our North American portfolio that will allow us to grow our reserves and production," said Gary Luquette, president of Chevron North America Exploration and Production.
"Chevron Canada is contributing to that anticipated growth in Atlantic Canada through our participation in the Hebron Project, through our ongoing financial interest in the Hibernia and Terra Nova offshore oil projects, and through our exploration in the Orphan Basin. Moreover, Chevron Canada is pursuing long-term growth through the development of legacy assets in the Alberta oil sands and Northern Canada."
Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Canada. Words such as "anticipates,""expects,""projects,""intends,""plans,""targets,""projects,""believes,""seeks,""estimates" and similar expressions are intended to identify such forward- looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; selection and successful execution of development plans; actions of competitors; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on the scope of the company's operations; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources,""oil-equivalent resources,""oil in place,""potentially recoverable volumes,""recoverable reserves," and "recoverable oil," among others, may be used in this press release that are not permitted to be used in filings with the SEC.