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ExxonMobil's Hebron Project Comes Online Ahead of Schedule

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ExxonMobil Corporation (XOM - Free Report) has commenced production in the Hebron project ahead of schedule. The project’s yield is expected at about 150,000 barrels of oil per day at its peak.

The Hebron field was discovered in 1980 and is estimated to hold more than 700 million barrels of recoverable resources. The Hebron platform has a storage capacity of 1.2 million barrels of oil and comprises a stand-alone gravity-based structure. This structure supports an integrated topside deck that includes living quarters and drilling and production facilities.

Tthe platform lies in water depth of about 300 feet (92 meters) and is located about 200 miles (350 kilometers) offshore Newfoundland and Labrador

The Hebron project entailed eight years of engineering, construction and startup phase. The company employed several vendors from the province of Newfoundland and Labrador. During the peak of the construction phase the project generated about 7,500 jobs. The total duration for the construction of the project was more than 40 million hours excluding any lost-time injury.

ExxonMobil’s affiliate, ExxonMobil Canada Properties, operates the Hebron with a stake of 35.5%. Chevron Corporation (CVX - Free Report) , Suncor Energy (SU - Free Report) , Statoil ASA and Nalcor Energy Oil and Gas Inc. hold 29.6%, 21%, 9% and 4.9%, respectively.

About ExxonMobil

ExxonMobil has a leading position in the energy industry owing to the size and diversity of asset base, business mix and geographical footprint. With a stable cash position, the company’s balance sheet is considered among the best in the industry. However, due to its integrated functions, the company is susceptible to risk from any weakness in the global economy. Moreover, dependence on costly offshore drilling might dent ExxonMobil’s cash flow.  

Shares of the company have returned 6.8% compared with the industry’s rally of 8.9% in the last three months.



 

Zacks Rank

ExxonMobil currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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