The Provincial Government and the Hebron
project operators have agreed to the design and construction in
Newfoundland and Labrador of a transportation or multi-purpose support
barge or barges for the construction phase of the project. An amendment
to the 2008 Benefits Agreement has been signed by the Provincial
Government and the project operators.
"The Hebron Project is a significant one for
Newfoundland and Labrador which our government negotiated to ensure
maximum benefits for the people of our province," said the Honourable
Kathy Dunderdale, Minister of Natural Resources. "I am pleased that the
province and the operators have agreed upon this construction which will
provide a minimum of 106,300 person hours of work and 1864 metric tonnes
of construction value, the benchmarks for the original pre-drill
concept."
In late 2009 the Provincial Government
announced that it had been notified by the project operator of a
modification to the development approach for the Hebron project. The
original concept included fabrication of: a sub-sea drilling template;
components of both the field mooring system; and, the positioning and
docking system. This work was intended to facilitate the drilling of
wells prior to the Gravity-Based Structure being set in place, however,
further studies determined that the pre-drill concept was not viable.
The operators will now conduct Hebron drilling from the Gravity-Based
Structure.
"After extensive evaluation the Hebron
operators indicated to the Provincial Government that modifications were
required to the original pre-drill concept of the Hebron Project," said
Minister Dunderdale. "The Provincial Government agreed that such
modifications were necessary but also insisted that the loss of
fabrication work associated with this proposal be replaced with an
equivalent amount of new fabrication work. The commitment of the
operators to meet the requirements of the benefits agreement must be
commended."
With this amendment to the 2008 Benefits
Agreement, the local design and fabrication represents work which
otherwise would not have taken place in Newfoundland and Labrador. The
original concept involved the leasing of barges during the construction
phase.
The amendment to the benefits agreement also
states that in the event this work cannot be completed, a payment of up
to $20 million, or the appropriate proportional amount, will be made to
the province for a construction project to the benefit of the oil and
gas industry. The amendment is effective immediately.
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Media contact:
Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612