CALGARY, Alberta, April 3, 2006 -- Chevron Canada Limited, on behalf of itself and its co-venturers - ExxonMobil Canada, Petro-Canada and Norsk Hydro Canada Oil & Gas Inc.- today announced a decision to suspend negotiations with the Government of Newfoundland and Labrador and demobilize the Hebron project team.
"We have worked tirelessly with the Government of Newfoundland and Labrador, especially during the past year, to find ways to move the Hebron project forward, but significant and fundamental gaps remain on fiscal terms and benefits that would enable the project to proceed in a viable manner. We are disappointed that we have not been able to reach an agreement with the government," said Alex Archila, President, Chevron Canada Limited.
"Hebron poses a number of challenges due to the high degree of technical complexity associated with recovering heavy oil in a harsh marine environment," Archila said. "While activities are suspended at this time, the co-venturers remain positive that activities could proceed at a future date with the conclusion of a definitive agreement with the Government of Newfoundland and Labrador."
The Hebron field is located 350 km offshore the province of Newfoundland and Labrador. Chevron Canada Limited is the designated operator for Hebron, with a 28 percent working interest. Other Hebron owners are ExxonMobil Canada Properties (37.9 percent), Petro-Canada (23.9 percent ), and Norsk Hydro Canada Oil & Gas Inc. (10.2 percent).
Chevron Canada Limited, a Canadian subsidiary of Chevron Corporation (NYSE: CVX), is actively engaged in oil and gas exploration and production activities in Atlantic Canada, the Mackenzie Delta and Alberta's oil sands. Chevron Corporation, based in San Ramon, Calif., is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. More information on Chevron is available at www.chevron.com.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this 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 "barrels estimated to be recoverable" or "in-place oil volumes" and others are used in this press release that may not be permitted to be included in documents filed with the SEC. In addition, SEC regulations define activities associated with oil sands as mining-related and not a part of conventional crude oil and natural gas producing activities. U.S. investors should refer to disclosures in Chevron's Annual Report on Form 10-K for the year ended December 31, 2005.