ExxonMobil says it did not keep Newfoundland and Labrador in the dark about Hibernia profits, despite Premier Danny Williams' claims that the company reneged on its promise to let an independent auditor look at its books concerning the oil project.

ExxonMobil spokeswoman Margo Bruce-O'Connell said the province had access to all of the company's numbers that it needed. 

Newfoundland and Labrador Premier Danny Williams says ExxonMobil has reneged on its promise to let an independent auditor look at the company's books.
(CBC)

"ExxonMobil Canada and the Hibernia owners are in full compliance with all legal requirements to provide information," Bruce-O'Connell said Thursday.

"This includes audits of financial records about the project, and we share that information with the CNLOPB [Canada-Newfoundland and Labrador Offshore Petroleum Board] as well as the federal and provincial governments."

Williams said ExxonMobil complained last year that it was not getting as much from the Hibernia offshore oil project as had been expected when the development was getting underway in the 1990s.

He said the government agreed last summer to review ExxonMobil's concerns if an independent auditor could assess the company's numbers.

However, Bruce-O'Connell said things have brightened considerably on the Hibernia front since the company did its first estimates.

"Low oil prices in the early years of Hibernia's production and a delayed start-up did impact the project's economics," said Bruce-O'Connell.

"However, this has been offset by the recent higher prices, improved production and the additional resources in the Hibernia reservoir.

"If the crude price and operating performance continue to improve, significant increases in royalties will occur."

When ExxonMobil complained of low profits last year, the company and the province were trying to negotiate a deal on how to develop the Hebron oil field.

Williams said the company intentionally downplayed Hibernia's profits, in part to give it an edge during the Hebron talks, and then blocked government auditors from going in to check the books.

"We had a right to go in here, we had an agreement to go in," said Williams.

"They reneged on it and we're not happy with it at all. I'm not pleased at all with a company that basically comes in and first of all misrepresents the facts and then secondly turns around and reneges on them, a blatant commitment two of their senior officials made to me."

However, Williams said he is moving beyond the squabble over the books and said he is looking for federal backing of his position.