) along with its partners are moving ahead with the development
of Hebron oil field offshore the Canadian province of
Newfoundland and Labrador. The development will utilize a
gravity-based structure and is estimated to cost about $14
CHEVRON CORP (CVX): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
SUNCOR ENERGY (SU): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
To read this article on Zacks.com click here.
The development will help in recovering over 700 million barrels
of oil, which exceeds the prior projection. The platform is
expected to yield its first gas towards the end of 2017 and
proposes to produce 150,000 barrels of oil per day.
The Hebron facility will use a stand-alone gravity-based
structure comprising reinforced concrete equipped in a manner to
endure harsh and glacial environment off Canada's north-east
coast. The base will be designed to store around 1.2 million
barrels of crude oil and will support an integrated topsides deck
consisting of living quarters as well as facilities to execute
drilling and production.
The Hebron project, which received regulatory approval from the
government authorities of Canada and the province in May 2012, is
likely to fetch 3,500 jobs in Newfoundland & Labrador.
Additionally, the facility will yield revenues of C$20 billion
for the province over the coming three decades.
Located in the Jeanne d'Arc basin, 350 kilometers south-east of
the capital of St John's and about 19 miles south-east of
ExxonMobil's Hibernia project, the Hebron oil field rests in
water depth of about 300 feet. Other developments in the region
include Hibernia, Terra Nova and White Rose.
ExxonMobil, the operator of the Hebron facility has a 36%
interest, while partners
Suncor Energy Inc.
) and Nalcor Energy hold 26.7%, 22.7%, 9.7% and 4.9%,
In the coming five years, ExxonMobil is expected to commission
numerous large-scale oil developments. Hebron represents one of
them. The working conditions in the Arctic pose immense
difficulties. But ExxonMobil intends to carry out development
activities and implement projects to build on the superior
resources of the region with its expertise.
ExxonMobil holds a Zacks #3 Rank (short-term Hold rating). Longer
term, we maintain our Neutral recommendation.