The Government of Newfoundland & Labrador and the Hebron consortium have signed a legal agreement for development of the province’s fourth major petroleum project. This deal demonstrates the industry’s confidence in the Hebron resource as well as the flexibility and goodwill of all parties in reaching a mutually beneficial agreement.

Newfoundland Oil and Gas Industry Association (NOIA) President Bob Cadigan expects initial project activity to ramp up very quickly, particularly work on the Hebron Development Plan Application. Mobilization of project management and engineering teams will be an important early step. Additionally, major global contractors and supply and service companies are already strengthening their on-the-ground capacity in order to compete for Hebron work.

The resident supply and service sector is optimistic about the opportunities Hebron will present. The project’s potential can be compared to Hibernia and White Rose combined, with construction, fabrication and drilling executed simultaneously. Cadigan says NOIA is confident that East Coast companies can compete for and win at least as much work as they have on past projects.

“We’ll have GBS construction, topsides fabrication and drilling all happening at roughly the same time – which could translate into as many as 4000 people working at sites like Bull Arm and Marystown, as well as on drilling operations offshore and on,” Cadigan notes. “And that’s just in the development phase; our companies and our people will be supporting Hebron producing operations for more than two decades.”