OilCo currently manages an 8.7% participating interest in the Hibernia Southern Extension project.
In 2010, we acquired a 10% working interest in the Hibernia Southern Extension (HSE) subsea tie-back project. This project includes two new licenses, as well as an area of the main field covered by the existing license.
The Hibernia field is currently Canada’s most prolific offshore oil project. In June 2011, the HSE unit achieved first oil. The project is expected to produce in excess of 170 million barrels. Since acquiring an ownership interest in HSE, the overall project has grown since initial estimates. OilCo anticipates an 11% growth in expected resource recovery compared to what was expected at the time of project sanction.
The HSE Agreements have provisions for a first and a final redetermination of the working interests. The first redetermination became effective on March 1, 2021, resulting in a reduction in our working interest in the HSE field from 10% to 8.7%. The final redetermination of ownership interests is currently expected to occur in 2025 (this date is subject to revision as estimate ultimate recovery of barrels changes).
In addition to its participating interest in the project, OilCo has acquired a significant amount of valuable high-quality geoscience data for the entire Hibernia field that will be useful in identifying possible future expansions.
Learn more about the project at Hibernia Southern Extension
*OilCo manages participating interests in the HSE project on behalf of Nalcor Energy-Oil and Gas.