N.L. settles another dispute with ExxonMobil over Hebron project benefits

The Newfoundland and Labrador government has settled a dispute related to the award of a contract for the Hebron oil project, but is releasing few details abouthow it was resolved.

The settlement was revealedin a provincial order-in-council posted online last week.

In that order, dated May 22, cabinet authorized the minister of Natural Resources "to settle a dispute related to ExxonMobil's award of a contract for topsides and GBS mating for the Hebron oil and gas development project."

• 'Very, very key milestone' of Hebron project reached this week, says NOIA

Natural Resources Minister Siobhan Coady was away and not available for an interview, but the department sent CBC News a statement on her behalf.

It notes that government and the Hebron partners had "different interpretations of commitments" under the benefits agreement for the project.

The dispute regarded "a work scope undertaken related to the barges used to transport the topsides to the deepwater site for GBS mating."

GBS refers to the gravity-based structure that sits on the ocean floor.

According to the statement, the Hebron partners "agreed to further benefits commitments that were not previously required."

The department declined to provide details on those additional benefits, or to put a price tag on any aspect of the dispute, and instead steeredCBC News to the formal access-to-information process.

A government official added that the agreement has not yet been fully executed.

ExxonMobilalso would notprovide further details.

"The Hebron co-venturers are pleased to resolve an outstanding issue with the province of Newfoundland and Labrador," ExxonMobilspokeswoman Lynn Evans said in an emailed statement.

"We consider the details to be confidential."

Not first dispute settled onHebron project

This is not the first time the Newfoundland and Labrador government has reached a settlement over benefits related to the Hebron megaproject.

In 2012, then-premier Kathy Dunderdale announced that ExxonMobil would pay the province $150 million in compensation instead of building a key offshore drilling equipment module at Bull Arm.

• ExxonMobil to pay $150M to resolve Hebron dispute
• N.L. in clash with ExxonMobil over 3rd Hebron module

First oil was pumped at the $14-billion Hebron project in November, a month ahead of schedule.

The Hebron field is located 350 kilometres southeast of St. John's. It's estimated to hold more than 700 million barrels of recoverable resources.

The Hebron partners areExxonMobil Canada Properties (35.5 per cent), Chevron Canada Limited (29.6 per cent), Suncor Energy Inc. (21 per cent), Equinor Canada (formerly StatoilCanada)Ltd. (nineper cent), and Nalcor Energy Oil and Gas Inc. (4.9 per cent).

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