Hibernia, the 'brazen' project that launched N.L.'s offshore industry, marks 25 years of oil production
For the first 9 months of 2022, Hibernia owners paid $1 billion to provincial and federal governments
The project that launched Newfoundland and Labrador's oil industry and helped transform the province's economy is celebrating 25 years of oil production, a milestone many never thought possible for the Hibernia project.
First oil was produced on Nov. 17, 1997, after years of struggle and uncertainty. That first barrel of oil was a full month ahead of schedule, and the project has been surpassing expectations ever since.
"They doubted our commitment. They doubted our capabilities. Were they ever wrong," Charlene Johnson, head of the industry lobby group Energy N.L., told a gathering of nearly 600 people at a Hibernia anniversary gala in St. John's on Wednesday night.
"Not only did we do it, but it has been a brazen success," she added.
The Hibernia oil field was discovered in 1979 on Newfoundland's Grand Banks, more than 300 kilometres from St. John's, but it took nearly two decades before it became a reality and not before several stops and starts.
The project had more than its share of critics in the halls of Parliament in Ottawa and in the national media but a determined group of oil companies, and some political arm-twisting by the likes of the late John Crosbie, saved the project.
"They said it couldn't be done but belief in ourselves and our resourcefulness proved them wrong," said Premier Andrew Furey.
Hibernia spawned a larger industry that now includes four producing oil fields and the possibility of a fifth as Equinor inches closer to a final investment decision on its massive Bay du Nord project.
Hibernia was supposed to last for 18 to 20 years and produce just over half a billion barrels of oil. But a quarter-century later, the project has now surpassed 1.2 billion barrels and is expected to keep producing for another two decades.
"I'm very proud to work there, and I always have been," said Hibernia worker Steve Tizzard, who was on board the platform when first oil was produced.
"It's a family atmosphere that's out there. What we have out there is so, so special."
Tizzard, whose two sons also work in the offshore industry, praised the platform's reputation for production, safety and environmental stewardship.
"It was the crown jewel back then and it still is as far as I'm concerned," said Tizzard.
The project has been a financial windfall, having contributed nearly $15 billion in revenues to the provincial treasury and another $4 billion to the federal government.
Oil companies such as ExxonMobil, the lead operator for Hibernia, have been reporting record profits in recent months because of surging oil prices. That windfall has also trickled down.
The Hibernia Management and Development Company, which manages Hibernia on behalf of the six companies that own the project, reported Wednesday that $1 billion was paid to the provincial and federal governments in the first nine months of 2022.
"The Hibernia platform has become an iconic symbol of our province and its people — a reminder of what we can achieve," said HMDC president Steve Edwards.
The Hibernia anniversary comes amid the backdrop of concerns about climate change and a growing push to transition away from fossil fuels to reduce greenhouse gas emissions.
Every speaker at Wednesday's anniversary dinner made reference to this new reality, and stressed that Newfoundland's offshore oil, produced at the highest standards and under strict regulations, should be part of the transition.
"When it comes to sustainability we believe Canada should be a preferred supplier of oil and gas in the global energy mix," said Edwards.
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