Processing Magazine

Chevron unit signs deal to develop Canadian field

August 20, 2008

The Associated Press reported that Chevron Corporation said Wednesday that a Canadian subsidiary and its business partners -- including Exxon Mobil -- have finalized a deal to develop an oil field off the coast of Newfoundland and Labrador. Chevron Canada Ltd. will use a gravity-based structure in the Hebron Field, which contains an estimated 400 million to 700 million barrels of recoverable oil and is located 210 miles offshore in about 300 feet of water. Chevron Canada has a 26.2 percent interest in the project, and is its operator. Other partners include Exxon Mobile Canada Properties, with a 36 percent interest; Petro-Canada, with a 22.7 percent interest; StatoilHydro Canada Oil & Gas Incorporated, with a 9.7 percent interest; and Oil and Gas Corporation of Newfoundland and Labrador, with a 4.9 percent interest. Shares of Chevron trading in the U.S. rose 37 cents to $85.04 in morning trading.