Chevron holds a 26.9 percent nonoperated working interest in the Hibernia Field that comprises two key reservoirs, Hibernia and Ben Nevis Avalon. Production decline continues to be mitigated through drilling programs for both reservoirs. Average net daily crude oil production in 2012 was 25,000 barrels.
Hibernia Southern Extension (HSE)
The HSE Unit development is expected to increase the economic life of the Hibernia Field. Chevron has a 23.6 percent nonoperated working interest in the unitized HSE areas of the Hibernia Field. During 2011, two producing wells were completed from the Hibernia platform. Fabrication of topside and subsea equipment progressed in 2012. Total project costs are estimated to be $1.8 billion. Full production start-up is planned for 2014. Proved reserves have been recognized for the initial wells drilled.
Chevron holds a 26.6 percent nonoperated working interest in the Hebron Field development located offshore the province of Newfoundland and Labrador. The development plan includes a concrete, gravity-base platform with a capacity of 150,000 barrels of crude oil per day. The maximum total daily crude oil production is expected to be 134,000 barrels. FEED activities were completed in 2012, and the final investment decision was made in December 2012. Project costs are estimated at $14.0 billion. This heavy-oil field is estimated to contain total potentially recoverable oil equivalent resources of more than 600 million barrels. The project has an expected economic life of 30 years, and first oil is expected in 2017. The initial recognition of proved reserves occurred during 2012 for this project.
Chevron operates and holds a 65 percent interest in an Orphan Basin exploration license totaling approximately 1.5 million acres (6,040 sq km). Drilling on a third exploration well in the Orphan Basin began in first quarter 2013. In the Flemish Pass Basin, Chevron holds a 40 percent nonoperated interest in exploration rights for two blocks totaling approximately 1.1 million acres (4,340 sq km). A 3-D seismic survey has been completed on these blocks in anticipation of a drilling decision in 2013.
In 2012, no exploration activities were carried out on the 100 percent-owned and operated Exploration License 1109 located offshore Labrador, and the company is assessing plans for further exploration.