A new estimate increased the recoverable oil resources off Newfoundland by almost 700 million bbl.
Revisions to the producing Hibernia field and the future development of the Hebron-complex account for this increased estimate, made recently by the Canada-Newfoundland and Labrador Offshore Petroleum Board.
Hibernia
The board based the new estimates for the Hibernia field on information from drilling and production activity since it last revised the Hibernia resource estimates in 2003. It now says that the field contained 1.244 billion bbl of proved and probable oil reserves, an increase of 379 million bbl.
As of Dec. 31, 2005, the field had produced 456 million bbl of oil, leaving 788 million bbl remaining to be recovered.
First oil through Hibernia’s floating, production, offloading vessel was on Nov. 17, 1997. ExxonMobil Canada Ltd. operates the project.
Hebron complex
For Hebron, which includes the Hebron, Ben Nevis, and West Ben Nevis fields, the board now estimates that the complex holds 731 million bbl of proved and probable resources, an increase of 317 million bbl. It based the new estimate on recent geologic, petrophysical, and reservoir simulation studies.
Development of Hebron is now on hold. Last April, Chevron Canada Ltd., announced a suspension of negotiations with the government of Newfoundland and Labrador and demobilized its Hebron project development team.
The company said, “...significant and fundamental gaps remain on fiscal terms and benefits that would enable the project to proceed in a viable manner.” It also added that Hebron poses a number of challenges because of the technical complexity associated with recovering heavy oil in a harsh marine environment.
But it also noted that “...activities could proceed at a future date with the conclusion of a definitive agreement with the government of Newfoundland and Labrador.”
Chevron Canada Ltd. is the operator with a 28% interest in Hebron.
Total resources
These revisions to Hibernia and Hebron recovery estimates increase the total initial resources off Newfoundland and Labrador to 2.751 billion bbl, an increase of 696 million bbl from the board’s previous estimate (Table 1).
The board also increased estimated recoverable gas to 10.234 from 9.646 tcf and NGL to 478 million bbl from 436 million bbl.
To yearend 2005, the three fields currently on production off Newfoundland-Hibernia, Terra Nova (Petro-Canada, operator), and White Rose (Husky Energy Inc., operator)-have produced 622 million bbl of oil.
Fig. 1 shows monthly oil production from these three fields.
