FIELD ACTIVITIES / Hibernia's First Oil Cargo headed to Market
ST. JOHN'S, Dec. 29 /CNW/ - Hibernia development project owners today
announced that on December 26, 1997 the first 850,000 barrel Hibernia crude
oil cargo had been sold to Tosco Corp., a US refining and marketing company.
While terms of the sale were not released, the cargo sold at a premium to
Dated Brent.
During the first year, Mobil Oil and Chevron will purchase the oil at
Hibernia's Offshore Loading System (OLS) from the other Hibernia owners and
deliver it to market. After the first year, each of the Hibernia owners may
market their share of Hibernia oil independently. Main markets for Hibernia
crude oil are expected to be refineries in eastern Canada, the US Atlantic and
Gulf coasts, the Caribbean and north west Europe.
Hibernia owner company Presidents agree, ''the 'first lifting' (the
transfer of crude oil from the platform to the tanker) and marketing of
Hibernia crude oil is a proud moment for everyone who has participated in the
project. It is one of the last major milestones of the Hibernia development
project and is the result of many years of dedication, perseverance and team
work''. They added, ''We are very pleased to see Hibernia's first crude oil
cargo enter the market as this represents the beginning of commercial activity
and the dawn of a new industry in Newfoundland and Labrador marked by exciting
future developments''.
Until the completion of the transshipment terminal at Whiffen Head,
Hibernia crude oil will be carried direct to market using two of the most
technically sophisticated tankers in the world, the (x)M.T. Kometik and
(xx)M.T. Mattea. Once the transshipment facility becomes operational in
October 1998, transportation of the oil to final market will be by some
combination of direct shipment and by transporting the oil to the terminal,
where conventional tankers will carry the oil to market.
Hibernia's first crude oil cargo of 850,000 barrels was lifted onboard
the M.T. Kometik using Hibernia's Offshore Loading System (OLS). For safety
reasons, the OLS is located about two kilometres from the Hibernia platform,
which has crude oil storage capacity of 1.3 million barrels. When a tanker
arrives at the OLS, crude oil is pumped via a subsea pipeline from the
platform to the OLS and from there to the tanker through a flexible loading
line connected to a sub-surface buoy.
The Kometik and its sister ship, the Mattea, are state of the art vessels
and specially designed for the icy waters of the Grand Banks. Each vessel is
Canadian flagged and crewed by two shifts of 23 people (including four
cadets), most of whom are Newfoundlanders. Vessel features include:
- state of the art navigation, communication and positioning systems;
- two bow thrusters, twin 13,000 horse power engines, two propellers and
two high-performance rudders providing exceptional maneuverability;
and
- ice-strengthened double hull to withstand sea ice impact.
In addition to this technology, emergency response training and
equipment, combined with the experience of the crew, will ensure the best
possible protection of both people and the environment. These features
demonstrate the commitment of the Hibernia owners to providing safe,
environmentally responsible and efficient operations in the challenging marine
environment off east coast Canada.
Hibernia has completed the drilling of two wells which are expected to
reach a total production rate of about 60,000 barrels of oil per day.
Hibernia's third and fourth wells, currently drilling, are expected to enter
production in the first quarter of 1998. By June, 1999 Hibernia expects
production to be 135,000 barrels of oil per day on a sustained basis.
The Hibernia owner companies are Mobil Oil Canada (33.125%), Chevron
Canada Resources (26.875%), Petro-Canada (20%), Canada Hibernia Holding
Corporation (8.5%), Murphy Oil (6.5%) and Norsk Hydro Canada Oil & Gas (5%).
The Hibernia platform is located 315 kilometres east southeast of St. John's,
Newfoundland. Oil production began November 17, 1997.
Notes:
(x)Kometik - is an Inuit word meaning sled. This sled was carefully
crafted to safely carry families, food and valuable possessions over the
hostile terrain of northern Newfoundland and throughout Labrador. She was
named Kometik as a symbol of safe and reliable transportation and symbolic of
Newfoundland's progress towards a new era of oil exploration and development.
The Kometik first arrived in Canadian waters on October 15, 1997 and
conducted a series of sea trials and testing at the OLS, as well as loading
and delivering several crude oil cargoes from the Caribbean to a New Jersey
refinery for Mobil Oil. The Kometik is owned by Mobil (49.8%), Chevron
(40.4%) and Murphy (9.8%) and is managed by a Newfoundland company, Canship
Ugland Limited.
(xx)Mattea - The name Mattea was selected because of its historical
significance and connection to Newfoundland's discovery by John Cabot 500
years ago. In honour of his wife Mattea, Cabot christened his ship Mathew
(anglicized version of the name Mattea), before sailing across the Atlantic
Ocean in 1497.
The Mattea is owned by Penney-Ugland Inc., a joint venture company based
in Newfoundland. It is time chartered by Petro-Canada, Norsk Hydro Canada Oil
and Gas and Canada Hibernia Holding Corporation. It is expected to arrive in
Canadian waters in early January, where it will undergo a series of sea trials
and tests at the OLS. |
