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Canadian Province Strikes Tentative Deal on Oil Project

Associated Press
Tuesday, 16 Jun 2009 | 1:23 PM ET

The leader of Canada's east coast province of Newfoundland has announced a tentative agreement to develop an offshore project estimated to contain 223 million barrels of oil.

Newfoundland and Labrador Premier Danny Williams said Tuesday the provincial government will acquire a 10 percent equity stake in Hibernia South.

The development includes Exxon Mobil, Chevron, Petro-Canada, Norsk Hydro, Murphy Oil and CanadaHibernia Holding.

Williams says over the life of the project, the province will generate $8.8 billion in revenue while Canada will earn $3.1 billion.

Newfoundland rejected a proposal to develop the project in 2007.

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