Newfoundland and Labrador Premier Danny Williams says little should be read into a visit to St. John's this week of a Chevron Canada Resources vice-president.

Talks between the Newfoundland and Labrador government and a Chevron-led consortium on developing the Hebron offshore oil megaproject broke off more than a year ago.

'If there's going to be negotiations on the project, I would estimate that it would be sooner rather than later,' Danny Williams said Wednesday.
(CBC)

Williams, however, has adopted a more conciliatory tone in recent weeks with the industry he has labelled "big oil."

This week, Chevron vice-president James Bates visited St. John's.

Speaking with reporters Wednesday in Corner Brook, Williams would only say that the province and the Hebron partners are still only talking at an informal level, and that he did not know why Bates was in St. John's.

"He very well could be in for some interaction with some officials but I'm certainly at this particular point in time not saying that there's any formal negotiations going on," Williams said.

"Basically where we are is where we left off."

The Chevron partners balked over Williams's insistence that the provincial government take an ownership stake — of just under five per cent — of the offshore oil project.

As well, the Newfoundland and Labrador government has been seeking a richer royalty regime with Hebron than had been the case with the three offshore oil fields now in production.

"The province has stated its position and the oil companies know exactly where we are," Williams said.

In June, Williams told delegates to a St. John's oil industry convention that talks had informally resumed between the government and the Hebron partners. He said Wednesday he remains hopeful that formal bargaining will soon begin.

"If there's going to be negotiations on the project, I would estimate that it would be sooner rather than later," said Williams, who said formal talks could resume by the end of the summer, if not earlier.

The Canada-Newfoundland and Labrador Offshore Petroleum Board reported in 2006 that Hebron contains some 713 million barrels of recoverable oil. The previous official estimate had been about 317 million barrels.