August 21, 2008

Chevron Canada to Develop Hebron Heavy Oil Project

Chevron Corporation has 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 340km offshore the province of Newfoundland and Labrador in 92 meters 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 to 700 million barrels of recoverable oil.

Mark Nelson, president of Chevron Canada, said: "The execution of these formal binding agreements with the Government of Newfoundland and Labrador represents a major milestone toward the successful development of the Hebron project."

Chevron Canada has a 26.63% working interest and is operator of the Hebron project. The other partners are ExxonMobil Canada Properties (36.04%), Petro-Canada (22.73%), StatoilHydro Canada Oil & Gas (9.7%) and Oil and Gas Corporation of Newfoundland and Labrador (4.9%).