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 from 2010 to 2011 was mitigated through a Hibernia reservoir drilling program. Average total daily crude oil production in 2011 was 151,000 barrels (28,000 net).
Chevron holds a 26.6 percent nonoperated working interest in the Hebron Field development located offshore the province of Newfoundland and Labrador. This heavy-oil field is estimated to contain total potentially recoverable oil-equivalent resources of more than 600 million barrels, and the development plan includes a concrete, gravity-base platform. FEED activities continued during 2011. The project has an expected economic life of 30 years. At the end of 2011, proved reserves had not been recognized for this project.
Hibernia Southern Extension (HSE)
The HSE Unit development is expected to stem the production decline from the Hibernia Field. Chevron has a 23.6 percent nonoperated working interest in the unitized HSE areas of the Hibernia Field. The development of these unitized areas requires the drilling of producing wells from the existing Hibernia platform and subsea drilling of water injection wells. During 2011, two producing wells were successfully drilled from the platform to obtain early reservoir information. The project costs are estimated to be $1.7 billion, with fabrication of topside and subsea equipment progressing. Further drilling is scheduled to commence in 2013 once the subsea facilities are installed. Full production start-up is planned for 2014. Proved reserves have been recognized for the initial wells drilled.
Chevron operates and holds a 65 percent interest in an Orphan Basin exploration license totalling approximately 1.5 million acres (6,040 sq km). Chevron has drilled two exploration wells in the Orphan Basin and is planning to drill a third exploration well in the latter half of 2012.
In the Flemish Pass Basin, Chevron was awarded a 40 percent nonoperated interest for exploration rights for two blocks totalling approximately 1.1 million acres (4,340 sq km) in fourth quarter 2011. A seismic program was deferred at the 100 percent owned and operated Exploration License 1109 located offshore Labrador while the company assesses plans for further exploration.