Hebron is the last of the four, big, offshore discoveries from the 1980s.
It’s due to come into production in 2017 based on a development agreement reached initially in 2007 with the provincial government and finalised in 2008. There’s a potential problem with current production schedule. The topsides fabrication is delayed in Korea but we won’t know until the middle of 2015 whether or not there will be further delays that would impact the planned date for first oil in 2017.
Hebron plays a big role in the imagination of the people currently running the province. Their reaction to the provincial government’s financial problems is based, in part, on the expectation that Hebron will bring huge amounts of new cash into provincial coffers.
But with oil prices down, people are starting to consider that those assumptions about an imminent return to insanely fat oil royalties might be a bit off base. With that in mind, let’s revisit the Hebron development agreement and see what turns up.