Minister responds to Hebron/Ben Nevis decision

Mines and Energy Minister Lloyd Matthews said that today�s announcement by the Hebron/Ben Nevis proponents to discontinue the joint evaluation of the project is disappointing for the province.

The Hebron/Ben Nevis proponents stated today that the economic risks, the significant challenges of the offshore resource and the complex nature of the development have resulted in a decision not to move forward with this project at this time.

Minister Matthews stated that while this decision is disappointing, government realizes that our offshore interest holders have to evaluate the economics of each potential project to ensure an appropriate return to their shareholders.

"Unfortunately, the Hebron Ben/Nevis proponents believe the development still has significant challenges and does not meet their economic threshold at this time," said Minister Matthews. "Government is hopeful that with continued technological advancements and assessment work, the project may become economical in the future."

Minister Matthews emphasized that there are still many positive things occurring in our offshore area.

"Hibernia and Terra Nova are producing, and government expects the White Rose proponents to proceed with that project later this year," said the minister. "It is important to note that while government can help set the right climate for investment, it is the private sector that makes the final decision to invest or not. We hope to see the Hebron/Ben Nevis proponents return to our offshore area in the future."

The Hebron/Ben Nevis field was discovered in 1981 and contains estimated resources of approximately 400 million barrels of oil. The project proponents include Chevron, ExxonMobil, Norsk Hydro and Petro-Canada.

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2002 02 13                        11:20 a.m.