Oil and Gas

Canadian Province Strikes Tentative Deal on Oil Project

Associated Press

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.