Hibernia

Location and Geology

The Hibernia oil field is situated in the Jeanne d’Arc Basin, approximately 315 kilometers east of St. John's, Newfoundland and Labrador, Canada. It is located in a water depth of about 80 meters, with the oil reservoirs at average depths of 3,700 meters and 2,400 meters for the Hibernia and Avalon reservoirs, respectively.

Discovery and Development

The Hibernia field was first discovered in 1979 by Chevron. Development began in 1986, and construction of the platform started in 1991. The field commenced oil production on November 17, 1997, a month ahead of schedule.

Ownership and Operation

The Hibernia project is operated by ExxonMobil and owned by a consortium of companies, including:

• ExxonMobil Canada subsidiary (33.125%)
• Chevron Canada Resources (26.875%)
• Suncor (20%)
• Equinor Canada (5%)
• Murphy Oil (6.5%)
• Canada Hibernia Holding Corporation (8.5%)
• Nalcor Energy (10% stake in the Hibernia Southern Extension).

The Hibernia Management and Development Company manages the project on behalf of the owning companies.

Infrastructure and Design

The Hibernia platform is a gravity-based structure (GBS) designed to withstand the harsh North Atlantic environment, including icebergs and severe storms. The platform is equipped with:

• A caisson closed at the bottom and top by horizontal slabs, with a base slab diameter of 108 meters.
• Four shafts running through the GBS to support the topsides facilities.
• Storage tanks for 1.3 million barrels of crude oil located inside the gravity structure.
• Topsides facilities with a design capacity of 23,900 cubic meters per day (150,000 barrels per day), including processing, wellhead, mud, utilities, and accommodation modules for 185 people.

Production and Performance

Initially expected to produce oil for 18 to 20 years and yield around 520 million barrels, the Hibernia field has significantly exceeded these projections. As of the latest reports, it has produced over 1.2 billion barrels of oil and is expected to continue production until at least 2040.

The oil produced is a light sweet crude with a density of 32°-34° API and a sulfur content of 0.4% to 0.6% by weight.

Economic Impact

The Hibernia project has been a pivotal economic driver for Newfoundland and Labrador. It helped bridge the economic gap created by the 1992 cod fishing moratorium, which left 30,000 locals jobless. The project created hundreds of new jobs and generated significant government revenue. By the first nine months of 2022, the project had paid $1 billion to provincial and federal governments, and since its inception, it has contributed nearly $15 billion to the provincial treasury and $4 billion to the federal government.

Environmental and Safety Considerations

The Hibernia project places a strong emphasis on environmental responsibility and stewardship. The platform is designed with emergency response and ice management plans to handle the harsh marine environment. The facilities must follow strict protocols when in proximity to ice, and the project has a reputation for production, safety, and environmental stewardship.

Challenges and Controversies

The project faced numerous challenges and criticisms, including high development costs and concerns about environmental impacts. Initially, the project was criticized for being one of the most expensive oil projects in the world, with estimated costs of around $26 per barrel, which were only made viable by significant government subsidies and support.

Despite these challenges, the project has proven to be a success, with all stakeholders acknowledging its positive impact on the local economy and the development of the offshore oil industry in Newfoundland and Labrador.

Current Status and Future Outlook

As the Hibernia project celebrates 25 years of oil production, it continues to play a vital role in the province's economy. The project has spawned a larger industry with four producing oil fields and the potential for a fifth with the Bay du Nord project. The industry is now navigating the transition towards more sustainable energy practices while emphasizing the importance of Newfoundland's offshore oil as a part of the global energy mix.