UPDATE 1-Canadian regulator approves Hibernia expansion

* Regulator OKs development from existing platform

* New development adds 223 mln barrels of reserves
(Adds details)

CALGARY, Alberta, Oct 12 (BestGrowthStock) – Newfoundland’s
offshore oil industry regulator approved plans on Tuesday by
the Exxon Mobil Corp-led (XOM.N: ) Hibernia Management and
Development Co to develop a new field using the project’s
existing platform and infrastructure.

The Canada-Newfoundland and Labrador Offshore Petroleum
Board cleared Hibernia, already Canada’s largest offshore oil
project, producing 170,000 barrels per day, to develop the
Hibernia Southern Extension project, tapping about 223 million
barrels of new reserves.

The regulator said the field can be developed from the
existing Hibernia platform, located 315 km (196 miles)
southeast of St. John’s, Newfoundland.

The provincial government had originally balked at
Hibernia’s plans to develop the field but last year took a 10
percent stake in the extension project and the Hibernia
partners agreed to pay a higher royalty on the new oil.

Along with Exxon, which holds a 33.125 percent stake in the
Hibernia project, the other partners are Suncor Energy Inc
(SU.TO: ) with 20 percent, Chevron Corp. (CVX.N: ) with 26.875
percent, Murphy Oil Corp. (MUR.N: ) with 6.5 percent, the
government of Canada’s Canada Hibernia Holding Corp with 8.5
percent, and Statoil (STL.OL: ) with 5 percent.
(Reporting by Scott Haggett; editing by Rob Wilson)

UPDATE 1-Canadian regulator approves Hibernia expansion