Hebron field project expected to produce 150 MBOPD at peak
- Project expects to produce up to 150,000 barrels of oil per day at peak
- Project had more than 40 million hours without a lost-time injury
- Project completed ahead of schedule
Exxon Mobil Corporation (ticker: XOM) announced today that the Hebron project safely started production. The project was revealed in a press release back in 2013 and ExxonMobil said that the capital cost for the project would be around $14 billion.
Discovered in 1980, the Hebron field is estimated to contain more than 700 million barrels of recoverable resources. The Hebron platform consists of a stand-alone-gravity-based structure (GBS), which supports an integrated topsides deck that includes living quarters and drilling and production facilities. The GBS consists of a reinforced concrete structure designed to withstand sea ice, icebergs, meteorological and oceanographic conditions. The platform has storage capacity of 1.2 million barrels of oil. The platform is located about 200 miles (350 kilometers) offshore Newfoundland and Labrador in water depths of about 300 feet (92 meters).
During its eight-year engineering, construction and startup phase, the Hebron project contracted hundreds of vendors throughout the province of Newfoundland and Labrador and created about 7,500 jobs during the peak of the construction phase.
Hebron is operated by ExxonMobil affiliate, ExxonMobil Canada Properties, which holds 35.5 percent equity in the project. Chevron Canada Limited holds 29.6 percent interest, Suncor Energy Inc. (NYSE:SU) holds 21 percent, Statoil Canada Ltd. has 9 percent and Nalcor Energy-Oil and Gas Inc. has 4.9 percent.
Today the Fraser Institute released its annual survey measuring barriers to investment in oil and gas, which include political risk, regulation, tax rates, environmental hoops and others. This year Newfoundland/Labrador was the top-ranked province in Canada. In fact, the Newfoundland/Labrador province rocketed up to the lofty post of fourth most attractive oil and gas province on the planet, moving way up from its global position of 25th last year.
