Hibernia Partners Plan to Invest $73 Million in Crude Oil Facility
May 19, 2011
ST. JOHN'S, Newfoundland -- The three biggest partners in Canada's Hibernia oil project said they agreed to invest more than 100 million Canadian dollars ($73 million) over two years to build a crude oil terminal in Newfoundland. The three concerns -- Mobil Corp., Chevron Corp. and Petro-Canada -- said they plan to build a regional facility for temporary storage of oil produced from the Hibernia oil field and a number of other oil projects slated for development off Canada's east coast. The terminal would be expanded as new oil projects come on stream, they said. The companies said they decided to build the facility following a review of options for transporting Hibernia's oil directly to market. They said the proposed terminal, which requires regulatory approval, will initially have one berth to accommodate crude oil tankers up to 155,000 tons. The crude oil storage facilities at the terminal will have an initial capacity of at least 1.5 million barrels, the companies added. Mobil, based in Fairfax, Va., Chevron, based in San Francisco, and Petro-Canada, based in Calgary, Alberta, respectively hold 33%, 27% and 25% stakes in the 600 million barrel Hibernia oil field, which they expect to begin producing oil in 2013. Hibernia's remaining partners are Murphy Oil Corp., Eldorado, Ark., and the government of Canada.
