Chevron has been exploring for new sources of energy off the shore of Atlantic Canada for more than 30 years. In 1979, the company discovered the Hibernia field. This major discovery was the catalyst that launched Newfoundland and Labrador’s offshore energy industry.
Chevron holds a 26.9 per cent nonoperated working interest in the Hibernia Field that comprises two key reservoirs, Hibernia and Ben Nevis Avalon (BNA). Cutting-edge, cost-effective technologies are employed at the Hiberniafield, including wells that reach up to 4.5 miles (7.2 km) in length and are drilled to a depth of almost 13,000 feet (3,960 m). The production platform has also been specially built to withstand blows from large icebergs that can be found in the production field.
Production decline at Hibernia continues to be mitigated through drilling programs in both reservoirs. Average net daily crude oil production in 2013 was 27,000 barrels. Most of Chevron’s crude oil production in Canada comes from the Hibernia field.
Hibernia Southern Extension (HSE)
Chevron has a 23.6 per cent nonoperated working interest in the unitized HSE areas of the Hibernia field. During 2013, two water injection wells began drilling to support the producing wells. Installation of subsea equipment began in 2013. Full production start-up is planned for 2015. Proved reserves have been recognized for this project.
Chevron holds a 26.6 per cent nonoperated working interest in the Hebron field development, which includes a concrete, gravity-base platform with a design capacity of 150,000 barrels of crude oil per day. Procurement and construction activities progressed during 2013. Project costs, including drilling and completion, are estimated at $14 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. Proved reserves have been recognized for this project.
In 2008, Chevron successfully led efforts to reach binding agreements with the government of Newfoundland and Labrador to enable the Hebron offshore heavy oil project to proceed.
The Terra Nova oil field is located in the Jeanne d’Arc Basin, about 35 km southeast of Hibernia. Production began in 2002. Chevron Canada has a 1 percent interest in the Terra Nova project.