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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (89417)	8/21/2007 10:25:48 PM
From: Rocket Red	Respond to of 314064

Nfld. strikes Hebron project deal SHAWN McCARTHY Tuesday, August 21, 2007 With a provincial election less than two months away, Newfoundland and Labrador Premier Danny Williams has won a major victory by concluding a deal with a consortium of oil companies to proceed with the $6-billion Hebron offshore oil project. Mr. Williams and representatives of Chevron Corp. -- the lead company in the consortium -- are set to hold a press conference on Wednesday in St. John's in which they will announce the go-ahead of the first stand-alone offshore project in several years. The companies have agreed to the province will be able to earn a 4.9-per-cent equity stake in the project, and have also accepted the government's demand for a super-royalty payment, should oil prices spike dramatically, industry sources said last night. The two sides had been at an impasse since April 2006, when the companies broke off talks over Mr. Williams' demands, particularly his insistence that the province receive equity in the project. At the time, Mr. Williams was particularly critical of ExxonMobil Corp., blaming the Texas-based oil giant for rejecting what he described as reasonable terms. Talks resumed in the late spring, after Mr. Williams indicated he was willing to invest in the project to earn the equity stake, and as international oil companies faced increasing hostility from oil-rich governments elsewhere, notably in Venezuela.