August 18, 2008 / 9:52 PM / in 9 years

Newfoundland, Chevron near deal on Hebron: report

CALGARY, Alberta (Reuters) - The government of Newfoundland is set to finalize a deal with Chevron Corp this week to develop the C$6 billion ($5.7 billion) offshore Hebron oil field, the Canadian Broadcasting Corp reported on Monday.

The signing of formal terms of the agreement would come a year after Premier Danny Williams and Chevron and its partners agreed to a memorandum of understanding that gave Newfoundland a 4.9 percent stake in the field for C$110 million.

Quoting unnamed sources, CBC said an announcement regarding the 731 million barrel Hebron and Ben Nevis heavy oil deposit could be made Wednesday or Thursday.

An official at the provincial natural resources department would not confirm the report. “There will be a media advisory issued when the time comes, and that’s all that I am able to say,” ministry spokeswoman Tracy Barron said.

An official at Chevron’s Canadian unit was not immediately available for comment.

The oil field, located in the Jeanne d‘Arc Basin in the Atlantic Ocean, about 350 km (220 miles) southeast of St. John‘s, Newfoundland, is co-owned by Petro-Canada, Exxon Mobil Corp and StatoilHydro.

It would be Newfoundland’s fourth offshore project after Hibernia, Terra Nova and White Rose.

($1=$1.06 Canadian)

Reporting by Jeffrey Jones; Editing by Peter Galloway

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