Due in part to its experience with sub-Arctic floatover topsides, Worley Parsons has been chosen to provide Front End Engineering and Design (FEED) for the ExxonMobil-operated (NYSE:XOM) Hebron heavy oil field development offshore Newfoundland and Labrador, Canada.
The award includes the option at the operator’s discretion for WorleyParsons to provide detailed engineering, procurement and construction (EPC) for the development as well.
While the FEED contract is for a consideration of $61 million, the combined FEED and EPC contracts should generate $285 million over five years, estimates Worley Parsons.
The oilfield services company will perform overall project management for the Hebron development, with subcontracts to be awarded to various third parties. The FEED is scheduled to be completed in 2011.
Discovered in 1981, the Hebron heavy oil field is located 350 kilometers offshore St. John’s, Newfoundland and Labrador, near the existing White Rose, Hibernia and Terra Nova developments.
Located in Arctic waters measuring 92 meters deep, the Hebron field will be developed via a stand-alone concrete GBS specially designed to withstand sea ice, icebergs and harsh weather.
ExxonMobil serves as the operator of Hebron with 36 percent interest. Project partners include Chevron with 26.7 percent, Suncor with 22.7 percent, Statoil with 9.7 percent and Nalcor Energy with 4.9 percent.
