Hibernia South ready to start
Nfld. Project; Construction may begin as soon as next year
By Claudia Cattaneo, Financial Post
June 16, 2009
CALGARY - Exxon Mobil Corp. is hoping to commence construction as soon as next year on a southern extension to the Hibernia oil project offshore Newfoundland, Mark Albers, senior vice-president, told analysts yesterday.
Hibernia South is an expansion of the Hibernia field founded two years ago that contains 230 million barrels of oil. Development of Hibernia South has been held back by a dispute over fiscal terms between the province and the oil-company consortium that owns Hibernia, including Exxon Mobil.
This year, Danny Williams, Premier of Newfoundland and Labrador, said his province would seek a 10% ownership stake in all future oil and gas projects after he secured 4.9% of the proposed Hebron development and 5% of the expanded White Rose project.
The Irving, Tex.-based company said it is planning to start building the Mackenzie Gas Project in the Northwest Territories, the first phase of the Kearl oilsands project in Alberta, and the Hebron heavy oil project, also in Newfoundland's offshore, after 2011.
Meanwhile, Mr. Alders talked up the Orphan basin play in Newfoundland's offshore, and its newly acquired assets in the Beaufort Sea, as two of the major opportunities it recently captured.
The company has stayed tight lipped about the results of its Great Barasway well in the Orphan basin, drilled at a cost of US$200-million.
Exxon Mobil and its Canadian affiliate, Imperial Oil Ltd., committed to spending $585-million last year on exploration in the Canadian Arctic over the next five years.
The Canadian projects are among a long list of investments the integrated company, the world's largest that is not owned by a government, has lined up for the next few years.
Exxon Mobil said it plans to invest US$125-billion in the next five years to increase energy supplies, or about 25% more than planned last year, after its oil production fell 2.4%.
ccattaneo@nationalpost.com
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