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ExxonMobil to Divest Terra Nova Project Offshore Canada
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The Canadian unit of ExxonMobil Corporation (XOM - Free Report) is planning to divest its whole 19% interest in the Terra Nova offshore oil project. The offshore project is located 350 kilometers southeast of Newfoundland and Labrador, Canada.
Per Reuters, the initial bids for the sale are expected to be on Mar 30, 2018. Production in the Terra Nova offshore oil project started in 2002. The project uses a Floating Production Storage and Offloading (FPSO) vessel, which produced around 31,000 barrels per day in 2017. With 38% stake, Petro-Canada, a subsidiary of Suncor Energy Inc. (SU - Free Report) is the operator of the project. Other partners in the project include Husky Oil Ltd and Murphy Oil Corporation (MUR - Free Report) .
The divestment is in line with the company's strategic objectives. It will help ExxonMobil to shrink its risky offshore asset portfolio and give an opportunity to focus on more profitable prospects. In addition, over the next five years, the company has plans to invest more than $50 billion in the United States to benefit from the corporate tax reduction.
ExxonMobil confirmed that its other assets in the region, like multi-billion dollar Hebron offshore oil project, are expected not to be affected by the Terra Nova project divestment. The project is operated by ExxonMobil and partnered by Chevron Corporation (CVX - Free Report) and others. The Hebron project produced its first oil in November last year.
About the Company
Irving, TX-based ExxonMobil is the world’s largest publicly traded oil and gas firm. The company has a leading position in the energy industry owing to the size and diversity of its asset base, both in terms of business mix and geographical footprint. It has three operating segments: Upstream, Downstream and Chemical.
ExxonMobil generated cash flow of $33.2 billion in 2017 from operations and asset divestments. With a stable cash position, the company’s balance sheet is one of the best in the industry. However, the integrated energy player’s rising exploration expenses are a concern. During fourth-quarter 2017, the company’s exploration cost surged more than 106%. If the trend continues, ExxonMobil’s upstream business will likely be affected.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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ExxonMobil to Divest Terra Nova Project Offshore Canada
The Canadian unit of ExxonMobil Corporation (XOM - Free Report) is planning to divest its whole 19% interest in the Terra Nova offshore oil project. The offshore project is located 350 kilometers southeast of Newfoundland and Labrador, Canada.
Per Reuters, the initial bids for the sale are expected to be on Mar 30, 2018. Production in the Terra Nova offshore oil project started in 2002. The project uses a Floating Production Storage and Offloading (FPSO) vessel, which produced around 31,000 barrels per day in 2017. With 38% stake, Petro-Canada, a subsidiary of Suncor Energy Inc. (SU - Free Report) is the operator of the project. Other partners in the project include Husky Oil Ltd and Murphy Oil Corporation (MUR - Free Report) .
The divestment is in line with the company's strategic objectives. It will help ExxonMobil to shrink its risky offshore asset portfolio and give an opportunity to focus on more profitable prospects. In addition, over the next five years, the company has plans to invest more than $50 billion in the United States to benefit from the corporate tax reduction.
ExxonMobil confirmed that its other assets in the region, like multi-billion dollar Hebron offshore oil project, are expected not to be affected by the Terra Nova project divestment. The project is operated by ExxonMobil and partnered by Chevron Corporation (CVX - Free Report) and others. The Hebron project produced its first oil in November last year.
About the Company
Irving, TX-based ExxonMobil is the world’s largest publicly traded oil and gas firm. The company has a leading position in the energy industry owing to the size and diversity of its asset base, both in terms of business mix and geographical footprint. It has three operating segments: Upstream, Downstream and Chemical.
ExxonMobil generated cash flow of $33.2 billion in 2017 from operations and asset divestments. With a stable cash position, the company’s balance sheet is one of the best in the industry. However, the integrated energy player’s rising exploration expenses are a concern. During fourth-quarter 2017, the company’s exploration cost surged more than 106%. If the trend continues, ExxonMobil’s upstream business will likely be affected.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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