Chevron Announces Agreements to Develop the Hebron Heavy Oil Project Offshore Newfoundland and Labrador

    CALGARY, Aug. 20 /CNW/ - Chevron Canada Limited, a wholly owned
subsidiary of Chevron Corporation (NYSE:   CVX), today announced on behalf of
itself and its co-venturers the completion of legal agreements with the
Government of Newfoundland and Labrador to develop the Hebron heavy oil
project offshore the East Coast of Canada.
    The Hebron field is located 340 km offshore the province of Newfoundland
and Labrador in 92 metres of water. Discovered in 1981, the field is expected
to be developed using a gravity-based structure with integrated drilling and
production topsides. Hebron contains an estimated 400 to 700 million barrels
of recoverable oil.
    "The execution of these formal binding agreements with the Government of
Newfoundland and Labrador represents a major milestone toward the successful
development of the Hebron Project," said Mark Nelson, president, Chevron
Canada Limited.
    "The Hebron Project is key to our Canada growth strategy and is one of
many projects in our global portfolio that will allow us to grow our reserves
and production," said Nelson. "Moreover, Chevron Canada is also pursuing
long-term growth through the development of legacy assets in the Alberta oil
sands and Northern Canada."
    "We congratulate the province of Newfoundland and Labrador on reaching
these agreements and look forward to working with them as a partner in
successfully executing this world-class energy project," said James Bates,
vice president, asset development, Chevron Canada Limited, and Chevron's lead
    "Chevron's participation in the Hebron Project gives our company a
strategic platform for growth on the East Coast of Canada, where we are
exploring for impact-sized resources in the Orphan Basin and have a major
financial interest in the Hibernia offshore oil project," said Bates.
    Chevron Canada Limited has a 26.63 percent working interest and is
operator of the Hebron Project. The other partners are ExxonMobil Canada
Properties (36.04 percent), Petro-Canada (22.73 percent), StatoilHydro Canada
Oil & Gas Inc. (9.7 percent) and Oil and Gas Corporation of Newfoundland and
Labrador (4.9 percent).

    Chevron Canada Limited is actively engaged in oil and gas exploration and
production activities in Atlantic Canada, Northern Canada and the Alberta oil
sands. Chevron Canada has been a key player in Canada's energy industry for 70
years and is committed to supporting the growth of Canada's energy future as a
partner of choice with governments, regulators and communities. More
information about Chevron Canada Limited is available at
    Chevron Corporation is one of the world's leading integrated energy
companies, with subsidiaries that conduct business across the globe. The
company's success is driven by the ingenuity and commitment of approximately
59,000 employees who operate across the energy spectrum. Chevron explores for,
produces and transports crude oil and natural gas; refines, markets and
distributes transportation fuels and other energy products; manufactures and
sells petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops and commercializes the
energy resources of the future, including biofuels and other renewables.
Chevron is based in San Ramon, Calif. More information about Chevron is
available at

    Cautionary Statement Relevant to Forward-Looking Information for the
    Purpose of "Safe Harbor" Provisions of the Private Securities Litigation
    Reform Act of 1995.

    Some of the items discussed in this press release are forward-looking
statements about Chevron's activities in Canada. Words such as "anticipates,"
"expects," "projects," "intends," "plans," "targets," "believes," "seeks,"
"estimates" and similar expressions are intended to identify such forward-
looking statements. The statements are based upon management's current
expectations, estimates and projections; are not guarantees of future
performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond the company's control and are difficult to
predict. Among the factors that could cause actual results to differ
materially are changes in demand for and supply of crude oil and natural gas;
selection and successful execution of development plans; actions of
competitors; government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, changes in fiscal terms or restrictions on the scope
of the company's operations; the potential disruption or interruption of
project activities due to war, accidents, political events, civil unrest or
severe weather; and general economic and political conditions. You should not
place undue reliance on these forward-looking statements, which speak only as
of the date of this press release. Unless legally required, Chevron undertakes
no obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
    U.S. Securities and Exchange Commission (SEC) rules permit oil and gas
companies to disclose only proved reserves in their filings with the SEC.
Certain terms, such as "resources," "oil-equivalent resources," "oil in
place," "potentially recoverable volumes," "recoverable reserves," and
"recoverable oil," among others, may be used in this press release that are
not permitted to be used in filings with the SEC.

For further information:

For further information: Tim Murphy, (o) (709) 757-6108, (c) (709)
728-9146; Leif Sollid, (c) (403) 604-2269

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