Handing over reigns: Chevron to give up operating role in Hebron project to ExxonMobil
Chevron to give up Hebron operating role
US supermajor Chevron is set to give up its status as operator of the planned Hebron oil project off the coast of Newfoundland to partner ExxonMobil, a Chevron spokesman said.
Chevron will hand over control of the C$5 billion to C$7 billion (US$4.8 billion to US$6.7 billion) oil project after Hebron's management committee votes to approve the deal, Reuters quoted spokesman Leif Sollid as saying.
No date has been set for the vote.
"It will be in as timely a manner as possible," he said.
ExxonMobil is the largest shareholder in the project, with a 36.04% interest. Chevron has a 26.63% stake.
The switch comes just days after the Hebron partners reached a deal with the Newfoundland & Labrador government on fiscal terms for the development, which could produce oil in eight or 10 years.
Hebron contains between 400 million and 700 million barrels of oil and will be the fourth major oil development off Newfoundland, joining the Hibernia, Terra Nova and White Rose projects.
All are in the Jeanne d'Arc basin, in the Atlantic Ocean, about 350 kilometres south-east of the Newfoundland capital, St Johns.
The other Hebron partners are Petro-Canada, with a 22.73% interest, and Norway's StatoilHydro with 9.7%.
The Newfoundland government will hold a 4.9% share.