ExxonMobil Announces Hebron Oil Project to Proceed off Canada′s East Coast
Development of field offshore Newfoundland and Labrador to produce
more than 700 million barrels of oil, an increase versus earlier
estimates
Gravity-based platform designed for daily oil production of 150,000
barrels
First oil anticipated in 2017
Exxon
Mobil Corporation (NYSE:XOM) announced today it will develop the
Hebron oil field offshore the Canadian province of Newfoundland and
Labrador using a gravity-based structure that will recover more than 700
million barrels of oil, an increase versus earlier estimates.
Capital cost for the project, which is expected to begin oil production
around the end of 2017, is estimated at $14 billion. The platform is
being designed for daily production of 150,000 barrels of oil.
'Hebron is one of several large-scale oil developments that ExxonMobil
will bring on stream in the next five years,? said Neil W. Duffin,
president of ExxonMobil Development Company. 'ExxonMobil will employ its
expertise in Arctic development and project execution to develop this
world-class resource in challenging operating conditions.?
Hebron′s development will provide significant benefits to the province,
including employment for up to 3,500 people during construction in the
province, and royalties and taxes to fund provincial infrastructure,
social programs and services.
The project received regulatory approval from the governments of Canada
and Newfoundland and Labrador in May.
Hebron will be developed using a stand-alone gravity-based structure
consisting of reinforced concrete designed to withstand sea ice,
icebergs and meteorological and oceanographic conditions. The base will
be designed to store approximately 1.2 million barrels of crude oil and
will support an integrated topsides deck that includes a living quarters
and facilities to perform drilling and production.
Front-end engineering and design was completed last year and significant
progress has been achieved on detailed engineering. Current cost
estimates reflect advanced project definition and current market and
foreign exchange rates.
Construction of the gravity-based structure is under way at the
project′s primary construction site in Bull Arm, Newfoundland and
Labrador. Topsides fabrication is expected to begin later this year.
Hebron will be operated by ExxonMobil affiliate, ExxonMobil Canada
Properties, which holds 36 percent equity in the project. Hebron
co-venturers are Chevron Canada Limited (26.7%), Suncor Energy Inc.
(22.7%), Statoil Canada (9.7%) and Nalcor Energy Oil and Gas (4.9%).
The Hebron field is located offshore Newfoundland and Labrador in the
Jeanne d'Arc Basin more than 200 miles (350 kilometers) southeast of the
capital of St. John's and about 19 miles (32 kilometers) southeast of
ExxonMobil′s Hibernia project. Water depth is approximately 300 feet (92
meters).
CAUTIONARY NOTE:
Statements that reference future events or conditions in this press
release are forward-looking statements. Actual future results, including
project plans, costs, and schedules, production rates, and resource
recoveries may differ significantly from the forecasts, depending on
changes in oil or gas prices and other market or economic factors that
affect the petroleum industry; the outcome of development programs;
reservoir performance; unexpected technical difficulties or other
technical or operating factors; the actions of governmental authorities
or regulatory agencies; and other factors listed under the heading
'Factors Affecting Future Results? on the Investor page at the
ExxonMobil website at www.exxonmobil.com
and in Item 1A of ExxonMobil′s most recent Form 10-K. References to
barrels of oil and other quantities of oil or gas in this release
include volumes that are not yet classified as proved reserves under SEC
definitions, but that we believe will ultimately be produced.
About ExxonMobil
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the largest publicly traded international oil and gas company, uses
technology and innovation to help meet the world′s growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the
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