The partners in the Hebron project sanctioned the development on New Year’s Eve and announced the decision on Friday.
The new cost estimate to build the gravity base and bring the oil field into production is $14 million. As CBC noted on Friday, the capital cost estimate for the project increased from $8.3 billion to $14 billion over the past 18 months. That’s a 69% increase for those doing the math.
“But much of the increase of billions relates to increased construction and drilling costs,” CBC reported on Friday, “ plus current market and foreign exchange rates.” The partners expect to produce first oil from the field in 2017.