ExxonMobil is to develop the Hebron oil field offshore the Canadian province of Newfoundland and Labrador using a gravity-based structure that it claims will help it recover more than 700 million barrels of oil, an increase versus earlier estimates.
The capital cost for the project, which is expected to begin oil production around the end of 2017, is estimated at US$14 billion. The platform is being designed for daily production of 150,000 barrels of oil.
Hebron is one of several large-scale oil developments that ExxonMobil will bring on stream in the next five years, said Neil W. Duffin, president of ExxonMobil Development Company. ExxonMobil will employ its expertise in Arctic development and project execution to develop this world-class resource in challenging operating conditions.
Exxon said that Hebron will be developed using a stand-alone gravity-based structure consisting of reinforced concrete designed to withstand sea ice, icebergs and meteorological and oceanographic conditions. The base will be designed to store approximately 1.2 million barrels of crude oil and will support an integrated topsides deck that includes living quarters and facilities to perform drilling and production.
Construction of the gravity-based structure is under way at the projects primary construction site in Bull Arm, Newfoundland and Labrador. Topsides fabrication is expected to begin later this year.Hebron will be operated by ExxonMobil affiliate, ExxonMobil Canada Properties, which holds 36 per cent equity in the project.
Hebrons co-venturers are Chevron Canada Limited (26.7 per cent), Suncor Energy Inc. (22.7 per cent), Statoil Canada (9.7 per cent) and Nalcor Energy Oil and Gas (4.9 per cent).
The Hebron field is located offshore Newfoundland and Labrador in the Jeanne d'Arc Basin which lies more than 350 kilometres southeast of the capital of St. John's and about 32 kilometres southeast of ExxonMobils Hibernia project. The field has a water depth of approximately 92 metres.