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ExxonMobil, NYSE:XOM launches Hebron Project off of Canada’s NE coast

COP, CVX, SU, STO

US Oil Giant, Exxon Mobil Corporation NYSE:XOM, said Friday it will spend US$14-B to produce Crude Oil off Canada’s northeast coast.

The Texas-based company expects the Hebron project to produce more than 700-M bbls of Crude Oil from about 92 meters deep of water off the coast of Canada’s Newfoundland and Labrador.

The move underlined how major Crude Oil producers have turned their attention to North America after years of searching for Crude Oil in the Middle East, Africa and other regions, analysts said.

New drilling technologies allowed companies such as ExxonMobil and ConocoPhillips, NYSE:COP, to make major discoveries in shale formations in Canada and the Unite States, and these companies were increasingly turning their attention to fields of the continent’s shores, they said.

Production at the Hebron field is set to start in early Y 2017 and will be capable of producing 150,000 BPD, ExxonMobil said.

“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,” he said.

ExxonMobil will own a 36% stake of the Hebron project through its Canadian subsidiary. Other companies holding an interest in Hebron are Chevron NYSE:CVX, Suncor Energy NYSE:SU, Statoil NYSE:STO, and Nalcor Energy Oil and Gas.