A release from Hibernia Management and Development Company Ltd. (HMDC) and ExxonMobil Canada Thursday announced the GBS produced its billionth barrel of oil on Dec. 21. This represents an amount higher than originally expected when the field started production in 1997.
“Hibernia is a Newfoundland and Labrador success story and the foundation of the provincial oil and gas industry,” HMDC president Jennifer Walck said in a release. “I am very proud to lead an extremely talented team and want to thank the leaders and workers who came before me, our co-venturers, contractors and the external partners who contributed to our success in terms of our safety culture and production performance. I also want to express appreciation to the government and regulator for their ongoing support.”
“Through extended-reach drilling, geological and reservoir modeling technology and daily maintenance and operations of the equipment, the team has been able to discover and produce more oil and extend the projected life of the project beyond 2040,” said Walck.
In reaching this milestone, HMDC noted the Hibernia and Hibernia Southern Extension project owners — ExxonMobil Canada, ChevronCanada Resources, Suncor Energy Inc., Canada Hibernia Holding Corporation, Murphy Oil, Statoil Canada Ltd. and Nalcor Energy Oil and Gas “have paid billions of dollars in royalties and taxes, created thousands of jobs, and provided the foundation for Newfoundland and Labrador’s offshore oil and gas industry.”
“Through extended-reach drilling, geological and reservoir modeling technology and daily maintenance and operations of the equipment, the team has been able to discover and produce more oil and extend the projected life of the project beyond 2040,” Walck added.
The provincial government was quick to offer its congratulations on the milestone.
“Newfoundland and Labrador has come a long way in developing our offshore since the first major oil project, Hibernia, began producing oil on Nov. 17, 1997, and here we are at the tremendous milestone of having produced one billion barrels of oil from the field," Premier Dwight Ball said Thursday. "With our province’s abundant resources and highly skilled workforce, we anticipate the continued successful exploration and development in the oil and gas industry for many years to come.”
“Our offshore oil industry continues to grow and mature," Natural Resources Minister Siobhan Coady added. "Since Hibernia began producing nearly 20 years ago, we have built infrastructure, developed a robust regulatory environment, advanced our supply and service industries, and supported extensive geoscientific research that has provided us with quality data and has attracted global attention. Even with the recent challenging global market conditions, our offshore industry partners continue to invest in Newfoundland and Labrador. The outlook for 2017 is tremendous: Hibernia is still going strong; Hebron will be coming on-stream; and with the recent successful Calls for Bids, we continue to welcome new companies to our offshore oil industry.”
The 2016 Call for Bids in the Canada-Newfoundland and Labrador Offshore Area, which resulted in a total work commitment of approximately $758 million and eight successful bidders — three of which are new to the province’s offshore.
Right now, Newfoundland and Labrador has three producing offshore projects.
"In 2017, a final investment decision is anticipated for the West White Rose Extension Project and the Hebron development is expected to begin oil production late in the year," a government release stated..