Hibernia project gets another government boost

This paper reports that Canadian governments will provide a financial backstop for development of Hibernia oil field off Newfoundland while a new partner i sought. Ottawa and Newfoundland will pay as much as $127 million or 75% of development costs incurred by the companies from May 15 to Nov. 1, 192. That figure could rise to $185 million if an agreement is extended to Jan. 1, 1993, by mutual consent. The governments will pay only if the project on the Grand Banks is suspended or terminated and buyers can't be found for Gulf's 25% interest. The federal government agreed to pay two thirds of the indemnity, Newfoundland one third. A federal spokesman the Ottawa does not expect to have to pay the funds. The agreement represents an insurance policy for participating companies