About NOIA |  Links |  Contact Us |  Home  
 
 
  
 
 
 
Forgot password
Not a NOIA Member? Reasons to Join
 
<September 2010>
SunMonTueWedThuFriSat
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
 		17
 		18
19
20
21
22
 		23
 		24
 		25
26
27
28
 		29
 		30
 
 
  
NOIA Golf Tournament
Thursday, 16 Sep 2010
  
5th International Symposium on Oil and Gas Resources in Western Newfoundland
Wednesday, 22 Sep 2010
  
Maritime Human Resource Conference
Tuesday, 28 Sep 2010
  
Networking Social
Thursday, 28 Oct 2010
  
Member Christmas Reception
Thursday, 9 Dec 2010
  Lorneville Mechanical Contractors
  Martin Industrial Group
  Spatial Energistics Group Inc.
  Weatherford Laboratories
 
News
NOIA welcomes Hibernia South Extension

June 16, 2009 - NOIA’s 25th Annual Conference opened this morning with news of a major expansion to the province’s oil and gas industry. Premier Danny Williams was on hand to officially open the event and to announce that a Memorandum of Understanding (MOU) has been reached between government and industry partners to develop the Hibernia South Extension.

“Hibernia South will increase and sustain production from the Hibernia field, preserving employment levels while providing a significantly greater royalty return for the province than any previous project,” said Premier Williams. “With this MOU, we have achieved an unprecedented royalty rate and equity interest.”

NOIA President & CEO Bob Cadigan said the expansion is positive news for the region’s oil and gas industry.

“This deal speaks to the long-term sustainability of our industry,” said Cadigan.  “With North Amethyst nearing completion Hibernia South will create opportunities for NOIA members in advance of Hebron.”

The MOU will provide for a 10 per cent equity stake for the province as well as a top royalty rate of 50 per cent. The extension will result in an estimated $10 billion in revenue from all sources based on forecasts from international energy firm PIRA.

The premier also pointed out the significance of this expansion in comparison to the original Hibernia field.

“The original field has produced 670 million barrels to date and the provincial treasury has seen $3.9 billion from that production. We expect a further $13 billion from the remaining main field production and its extension adds an estimated $10 billion more in revenue for the province,” the Premier said. “In addition, Canada will once again see revenue from Newfoundland & Labrador resources with the development of the Hibernia South Extension. On this deal alone, we expect the Federal Government and rest of Canada will see more than $3.5 billion in revenue.”

Premier Williams also announced that the Hibernia field is now in payout meaning that on the main part of the original Hibernia field the province is now receiving a royalty of 30 per cent of net revenues.

-30-

About NOIA
NOIA (Newfoundland & Labrador Oil & Gas Industries Association) is Canada’s largest offshore petroleum association and has been headquartered in Newfoundland and Labrador since its founding in 1977.  With over 480 members in this region and around the world, NOIA is the information hub of East Coast Canada’s oil and gas industry.  NOIA members provide products and services for the petroleum sector; associate members include petroleum companies, trade associations and government bodies and agencies.

For additional information

Deborah Inkpen
Director, Communications & Policy
Tel:709-758-6617/Cell: 709-691-2208
deborah.inkpen@noianet.com
 Go Back To News Releases Page
 
   
Site Designed by Webquarters Privacy Statement
© NOIA, All Rights Reserved