The Journey to Hebron

Canadian Oil and Gas

The evolution of the petroleum sector has been a key factor in the history of Canada. Although the conventional oil and gas industry in Western Canada is mature, the country’s Arctic is still in early stages of exploration and development, and offshore developments are only about 25 years old.

Canada’s bitumen, especially within the Athabasca oil sands, is still only a partially exploited resource. By 2025, this and other unconventional oil resources – the northern and offshore frontiers and heavy crude oil resources in the West – place Canada in the top ranks among the world’s oil-producing and exporting nations. Assessments of global resources, place Canadian oil reserves second only to Saudi Arabia in terms of proven reserves.

Canadian petroleum production is now a vital part of the national economy and an essential element of world supply. Canada has become an energy giant.

Offshore Resources

Offshore oil and gas is a powerful contributor to Canada’s total petroleum reserves even though the industry is relatively young. In the early 1990s, oil and gas projects offshore Atlantic Canada came to fruition with developments off the coast of Newfoundland and Nova Scotia, creating significant finds and contribution to Canada’s overall oil and gas production.

Offshore Newfoundland, a whole new energy industry emerged, which provided a welcome diversification as the fishing industry transformed into an energy industry, all within a twenty-year time frame. Approximately 250 miles offshore, Newfoundlanders brought major projects to fruition, which included Hibernia, Terra Nova, White Rose, and now the province enjoys its fourth mega oil project – Hebron.

Hebron is a heavy oil field estimated to have 400-700 million barrels of recoverable resources. The field was first discovered in 1981, and is located offshore Newfoundland and Labrador in the Jeanne d’Arc Basin, 350 kilometers southeast of St. John’s, the capital of Newfoundland and Labrador. It is approximately nine kilometers north of the Terra Nova project, 32 kilometers southeast of the Hibernia project, and 46 kilometers from the White Rose project. The water depth at Hebron is approximately 92 meters.

The Major Contractors for The Hebron Project, Newfoundland, Canada

Contract / PO	Summarized Scope	Status	Contact Information
Gravity-Based Structure FEED-EPC	Front-End Engineering and Design (FEED) and site preparation, with the option at ExxonMobil’s discretion to subsequently provide detailed engineering, procurement and construction (EPC) services.	Awarded to Kiewit-Aker Contractors on November 8, 2010	Rod Hogg Kiewit-Aker Contractors 215 Water Street, Suite 505, St. John’s, NL A1C 6C9 Ph: 709-733-7040 Email: rod.hogg@kiewit.com
Environmental Services	Fisheries Act Authorization(s) and other Regulatory / Permitting Support	Awarded to AMEC Earth& Environmental on August 30, 2010	Michael Teasdale, Project Manager AMEC Earth & Environmental 133 Crosbie Road, PO Box 13216 St. John’s, NL A1B 4A5 Ph: 709-722-7023 Email: michael.teasdale@amec.com
Topsides FEED-EPC	Front-End Engineering Design, with the option at ExxonMobil’s discretion to subsequently provide Engineering, Procurement & Construction services	Awarded to WorleyParsons Canada Services Ltd. on August 27, 2010	Marty Gaulin Vice President & General Manager, East Coast Operations Suite 604 Atlantic Place, Box 67, 215 Water Street St. John’s, NL A1C 6C9 Ph: 709-733-7081 Email: Hebron.Enquiries@Worleyparsons.com
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to Puglisevich on March 31, 2010	Robert Barron / Jennifer Folkes Puglisevich 611 Torbay Road St. John’s, NL Canada A1A 5J1 Ph: 709-722-2744 Ext 230 Email: bob@puglisevich.com
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to Upstream Solutions Inc. on March 31, 2010	Doug Youden Upstream Solutions Inc. 9 Church Hill, St. John’s, NL A1C 3Z7 Ph: 709-757-3707 Email: dyouden@upstreamsolutions.ca
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to Talon Energy Services on March 31, 2010	Susan Kennedy Talon Energy Services 215 Water Street, Suite 305, Box 11, St. John’s, NL A1C 6C9 Ph: 709-739-8450 Email: susan.kennedy@talonenergyservices.ca
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to Derek Tunnah Design Canada Ltd. on March 31, 2010	Matthew Shinkle Derek Tunnah Design Canada Ltd. 1345 Topsail Road P. O. Box 8398, Station A St. John’s, NL A1B 3N7 Ph: 709-782-2645 Email: mshinkle@coil.ca
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to NSB Energy Inc. on March 31, 2010	William Newton NSB Energy Inc. Suite 608 Atlantic Place Box 49, 215 Water Street St. John’s, NL A1C 6C9 Ph: 709-753-0674 Email: wnewton@nsbenergy.com
Technical Staffing Services Agreements	Provision of consulting and/or professional services (agency type) to the Hebron Project.	Awarded to Noramtec Consultants Inc. on March 31, 2010	Mike Payne Noramtec Consultants Inc. 239 Major’s Path, St. John’s, NL A1A 5J3 Ph: 709-754-6410 Email: mike@noramtec.com
Bull Arm Marine Investigation	Provision of Marine Site Investigation Services (Berm Wall Soil Investigation) associated with the Bull Arm Site reactivation.	Awarded to Stantec Consulting Limited May 17, 2010	Lorne Boone Stantec Consulting Limited 604 Topsail Road, St. John’s, NL A1A 4Y6 Ph: 709-576-1458 Email: Lorne.Boone@stantec.com
Eastern Canada 2010 Site Surveys	Provision of geophysical data acquisition in support of the Hebron, Hibernia South Extension and Sable field developments. Work is expected to commence June 2010.	Awarded to Fugro Jacques GeoSurveys Inc. April 22, 2010	Ewan Cumming Fugro Jacques GeoSurveys Inc. 25 Pippy Place, St. John’s, NL A1B 3X2 Ph: 709-726 4252 Email: ecumming@fjg.ca
Bull Arm Infrastructure Study	Assess the readiness of the Bull Arm Site for selected Hebron topsides module fabrication; assess the overall readiness of the Bull Arm Site’s civil and marine infrastructure including the existing water supply, sewer systems, power and telecommunication systems.	Awarded to SNC-Lavalin Inc.December 22, 2009	Nick Gillis SNC-Lavalin Inc. 1133 Topsail Road, Mount Pearl, NL A1N 5G2 Ph: 709-368-0118 Email: Nick.Gillis@snclavalin.com

Exciting Resource Opportunities in Newfoundland and Labrador

Newfoundland and Labrador’s oil and gas industry is one of the leading reasons for the tremendous growth of the provincial economy over the last decade. Oil production is the single most significant source of provincial revenue and contributes nearly 30 percent to the province’s gross domestic Product. The industry employs approximately 3,500 men and women throughout Newfoundland and Labrador, and accounts for 2.4 percent of provincial employment. In 2011, economic growth is expected to be three percent as a result of significant investment in major resource projects and mineral production. Capital investment is expected to grow to an unprecedented $8.3 billion. Of this, $2.7 billion is expected to be spent in the province’s oil and gas and mining industries.

A look across Newfoundland and Labrador shows that all regions of the province are benefiting from the development of our valuable oil and gas resources. From improved roadways and bridges to new schools, to new and upgraded healthcare facilities, and continued support of social programs, the provincial government is using its oil and gas revenues to benefit all Newfoundlanders and Labradorians.

Exciting development activity on the horizon will continue to ensure the success of Newfoundland and Labrador. Hebron, the province’s fourth stand-alone oil project, is advancing. Expansion projects and satellite developments, including the Hibernia Southern Extension, North Amethyst and West White Rose, will provide positive boosts to the provincial economy, and demonstrate the potential of existing oil fields.

Future revenue growth from oil production is directly related to exploration. Exploration supports long-term sustainability and leads to new discoveries. The prospectivity of Newfoundland and Labrador’s basins continues to capture the attention of existing and new players in the oil and gas industry. The 2011 Call for Bids by the Canada-Newfoundland and Labrador Offshore Petroleum Board shows steady interest in areas of the province that to date have remained largely unexplored, including the Western Offshore, the Labrador Offshore, and the Flemish Pass/North Central Ridge regions. Last year’s Call for Bids resulted in more than $110 million in new work commitments for the province. A key Energy Plan commitment was to develop regulatory and fiscal measures that would promote targeted exploration activity and address other industry needs.

Newfoundland and Labrador’s offshore boasts undiscovered reserves of 6.0 billion barrels of oil and 60 trillion cubic feet of natural gas, and the provincial government is confident in its resource potential. Newfoundland and Labrador have a competitive, regulatory environment open for business with plenty of opportunities to grow and explore. The provincial government will continue to pursue the responsible, successful development of our oil and gas resources in the best interest of the province, and ensure that our communities and people continue to prosper.