The final numbers are in, and Nalcor Energy's 10 per cent equity stake in Hibernia South has sent ripples through all the ownership interests held by the oilfield partners.
In one part of Hibernia South, the provincial energy corporation is now the fourth-largest partner behind ExxonMobil, Chevron Canada and Suncor Energy.
For a $30-million investment, Nalcor gets ownership in most of Hibernia South and pays its share of future development costs.
The provincial government also gets an enhanced royalty scheme when world crude prices exceed US$50 per barrel, and the top royalty rate is now 50 per cent in most of the southern extension.
Then, things get complicated.
Hibernia South consists of four main areas, and Nalcor has an equity stake in three of them. The four areas are:
AA Block located in the original oilfield known as production licence 1001, which has pumped oil since 1997. (Nalcor has no equity stake in this block.)
Three smaller blocks also located in production licence 1001 - KK, GG and NN blocks.
Production licence (PL) 1005.
Exploration licence (EL) 1093.
Oil in blocks KK, GG and NN straddles the boundaries of both PL 1005 and EL 1093. So, Nalcor opted for what's called a beneficial working interest in those blocks.
"That allows us actually to get on the licence, to enjoy some of the benefits on the licence and to shed some of the liabilities on the licence," said Jim Keating, vice-president of Nalcor's oil and gas division.
"That's why there's a difference."
Nalcor also opted not to take an equity stake in the AA Block, which started production of its estimated 48 million barrels of oil in November.
"It was a block that was wholly contained in PL 1001. So, no part of it spilled into new licences," said Keating.
"We were mostly interested in the new oil. When the energy plan says we're going to be in for 10 per cent of developments, it's really go-forward (developments)."
Here are the new ownership stakes for all the partners in most of Hibernia South since Nalcor Energy finalized its 10 per cent equity stake in the oilfield. The partners are not the same for the main two parcels of land in Hibernia South.
Exploration Licence 1093 Current Previous
ExxonMobil Canada 25.3125 % 28.125 %
Chevron Canada 24.1875 % 26.875 %
Suncor Energy 18 % 20 %
Nalcor Energy 10 % 0
Canada Hibernia Holding Corp. 7.65 % 8.5 %
Murphy Oil 5.85 % 6.5 %
ExxonMobil Canada Hibernia Holding Co. 4.5 % 5 %
Statoil Canada 4.5 % 5 %
Production Licence 1005 Current Previous
ExxonMobil Canada 22.5 % 25 %
Chevron Canada 22.5 % 25 %
Suncor Energy 22.5 % 25 %
Statoil Canada 22.5 % 25 %
Nalcor Energy 10 % 0
Source: Canada-Newfoundland and Labrador Offshore Petroleum Board