ASSET TRADE / Chevron Canada Resources & Mobil OIl Canada
CALGARY, Feb. 17 /CNW/ - Chevron Canada Resources and Mobil Oil Canada
jointly announced today a trade of assets that strengthens their strategic
alliance for exploration and development in the Grand Banks area, offshore
Newfoundland. The alliance was announced in September, 1997.
As part of the alliance, Chevron has acquired a 1% interest in the
Terra Nova Project from Mobil. In exchange, Mobil received properties in
western Canada owned by Chevron. Details and terms of the transaction were
not released.
Bill Edman, President of Chevron Canada Resources said, ''We are very
pleased to join the Terra Nova project. Although our position is very minor
at this time, we are fully prepared to support the project and help it move
forward. We believe our inclusion in the project will also greatly enhance
overall basin-wide planning since we are a major stakeholder in all key
adjacent fields.''
Edman added, ''We also look forward to working closely with the other
Terra Nova owners. With Hibernia already producing, Terra Nova will serve as
the second key cornerstone of the emerging cast coast oil and gas industry.''
Jerry Anderson, President of Mobil Oil Canada said, ''We welcome Chevron
to Terra Nova as we strengthen the alliance between our two companies for
current and future activities off Canada's east coast. Mobil is a dominant
oil and gas player in the region with strong positions in Hibernia, Terra
Nova, Sable, and several other close-by significant discoveries, as well as
significant future exploration potential in the region.''
Anderson added, ''The land acquired from Chevron fits well within our
growth strategies for oil and gas operations in western Canada where Mobil
holds substantial interests.''
The Terra Nova field is located on the Grand Banks 350 kilometres
east-southeast of St. John's, Newfoundland. Discovered in 1984, Terra Nova is
the second largest oil field off Canada's east coast. Estimated recoverable
reserves are 370 million barrels of oil.
Terra Nova project owners are; Petro-Canada (29%); Mobil Oil Canada
(22%); Husky Oil (17.5%); Norsk Hydro (15%); Murphy Oil (12%). Mosbacher
Operating Ltd. (3.5%); Chevron Canada Resources (1%). |
