Natural Resources
December 16, 2014
The following statement was given today in the House of Assembly by the Honourable Derrick Dalley, Minister of Natural Resources:
Minister Welcomes News of Increased Reserves for the Hibernia Field
Mr. Speaker, I rise in this Honourable House to highlight today's announcement by the Canada-Newfoundland and Labrador Offshore Petroleum Board that reserves for the Hibernia field have increased to an estimated 1,644 million barrels of oil.
This is a substantial increase from the 1,395 million barrels of oil last updated in 2010 and may extend the productive life of the field by seven years.
This news is evidence that Newfoundland and Labrador will remain a major player in the offshore oil sector for decades to come. It demonstrates the sustainability of the province's mature producing basins and the longevity of the Hibernia field.
Mr. Speaker, Hibernia was our province's first major pioneer offshore oil project and has returned substantial benefits to the people of the province and Canada. Sales from the additional 249 million barrels of production will generate a significant increase in value to the province. Using PIRA's latest long-term oil price outlook for Brent crude from 2015 onward, this increase in Hibernia reserves is estimated to generate an incremental $12 billion in royalty, tax and equity for the province.
Newfoundland and Labrador is home to three producing offshore projects - Hibernia, Terra Nova, and White Rose. The province is positioned for growth with the Hebron development and the advancement of the White Rose Extension Project.
Today's reserve update joins a growing list of strategic developments in the offshore industry, including the discovery of oil at Bay du Nord, the new scheduled land tenure system, and the recent success of the Calls for Bids which resulted in a $559 million commitment to exploration in the Flemish Pass Basin.
The Provincial Government's continued leadership in the offshore petroleum industry will ensure the continuity of offshore production, employment and business activity for the long-term. Thank you.
- 30 -
2014 12 16 1:45 p.m.