Hebron oilfield negotiations formally resumed

Newfoundland and Labrador Premier Danny Williams confirmed Thursday that formal negotiations to develop the offshore Hebron oilfield are back on.

Williams left early from the premiers conference in New Brunswick to return to St. John's and participate in talks with the companies behind the development.

Negotiations on developing the Hebron Ben Nevis field broke off in the spring of 2006, when a consortium of companies led by Chevron Resources Canada would not agree to the provincial government's insistence on taking a 4.9 per cent ownership stake in the project.

In return, the consortium had been seeking tax breaks.

There was word in June that informal talks had resumed, and Chevron vice-president James Bates was in St. John's to meet with government officials several weeks ago.

The premier recently said the province hasn't changed its demands for equity in the Hebron project and a richer royalty regime. The Hebron project will be the fourth oilfield development for the province.