News Releases
Government Home Search Sitemap Contact Us  


Natural Resources
September 24, 2010

Replacement Fabrication Work for Hebron Project Agreed Upon

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.

- 30 -

Media contact:

Ken Morrissey
Director of Communications
Department of Natural Resources
709-729-5282, 685-6612
kenmorrissey@gov.nl.ca

2010 09 24                                                    10:40 a.m.

 


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement