Exxon to spearhead $14 billion oil project in Canada

Exxon Mobil Corp. is leading a $14 billion project to produce oil off of Canada’s northeast coast, the company announced Friday.

Exxon Mobil expects the project to recover more than 700 million barrels of oil from a field in water about 300 feet deep off the coast of Newfoundland and Labrador.

Production at the Hebron field is set to start in early 2017 and will be capable of churning out 150,000 barrels of oil per day, according to an Exxon Mobil announcement.

The project is among several massive efforts being pursued by Exxon Mobil, the world’s second largest publicly traded company after Apple. Others include an oil sands endeavor, also in Canada, that the company expects will  produce 170,000 of barrels a day. The Kearl oil sands project is expected to begin producing this year, according to Exxon Mobil.

The company’s big spending on new projects is expected to continue, as Exxon Mobil last year announced it would spend $185 billion over five years to develop new supplies of energy.

Exxon Mobil will own a 36 percent stake of the Hebron project through its Canadian subsidiary. Other companies holding an interest in Hebron are Chevron, with 26.7 percent, Suncor Energy, with 22.7 percent, and Statoil, with 9.7 percent, and Nalcor Energy Oil and Gas, with 4.9 percent ownership.

The Hebron project will be located about 200 miles southeast of the provincial capital St. John’s. It will use a concrete production structure positioned on the seafloor, the company said. The platform has been “designed to withstand sea ice, icebergs and meteorological and oceanographic conditions,” according to an Exxon Mobil announcement.

The concrete base will also be designed to store about 1.2 million barrels of crude oil.
The facility is under construction in Newfoundland and Labrador, the company said.