ST. JOHN'S, N.L. - A Newfoundland network says a deal has been reached to develop the Hibernia South offshore oilfield off Newfoundland.
NTV News says Premier Danny Williams will make the announcement Tuesday during the annual conference of the Newfoundland and Labrador Oil and Gas Industries Association.
The original application to develop the field was rejected in January 2007 because the province wanted more details about a tax regime and other arrangements.
There are an estimated 225 million barrels of recoverable oil in Hibernia South.
Tapping those reserves would extend the life of the Hibernia field by at least a decade.
The companies pushing for development include ExxonMobil (NYSE:XOM), the world's largest energy producer, and Petro-Canada (TSX:PCA).