ExxonMobil moves ahead with $14-bn Hebron project in Canada

The world's largest oil and gas company Exxon Mobil Corp has  said it will develop the Hebron oilfield offshore the Canadian province of Newfoundland and Labrador at an estimated cost of $14 billion.

The project, which is expected to go on stream towards the end of 2017, targets to produce around 150,000 barrels of oil per day. In all, it will recover over 700 million barrels of oil, ExxonMobil said in a statement.

''Hebron is one of several large-scale oil developments that ExxonMobil will bring on stream in the next five years,'' said Neil Duffin, president of ExxonMobil Development Company.

The project, which had already received the necessary approvals from the federal and provincial governments, will provide employment to around 3,500 people during construction besides contributing towards provincial infrastructure, social development and services through payment of taxes and royalties.

ExxonMobil Canada Properties, an affiliate of ExxonMobil with a 36-per cent stake in the venture, will be the operator of the project. Other members of the consortium include Chevron Canada Ltd with 26.7- per cent stake, Suncor Energy Inc 22.7 per cent, Statoil Canada 9.7 per cent and the provincial corporation Nalcor Energy Oil and Gas 4.9 per cent.

The Hebron oil filed is located offshore in the Jeanne d' Arc Basin, more than 350km southeast of the provincial capital St John's and about 32km southeast of ExxonMobil's Hibernia project, at a sea depth of around 92 metres.