Exxon and Partners to Spend $14 Billion on Oil Field in Canada
Texas-based Exxon Mobil Corp. (NYSE:XOM) and partners Chevron Corp. (NYSE:CVX), Statoil ASA (NYSE:STO), Suncor Energy Inc. (NYSE:SU), and Nalcor Energy Corp. will be developing an oil field just over 200 miles southeast of St. John’s, Newfoundland, and Labrador, in Canada, for approximately $14 billion. The Hebron oil field will be able to produce over 700 million barrels of crude oil, which, at current prices, would be worth roughly $77.8 billion.
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Exxon’s output has declined steadily for the past five quarters, so Hebron is just one of many massive projects that CEO Rex Tillerson is pursuing in an attempt to reverse this downward trend. “Exxon has been growth-challenged for some time,” concedes Edward Jones & Co. analyst Brian Youngberg in an interview with Bloomberg, but he adds that the new field can “potentially help jumpstart growth going forward.” Oil production is slated to begin in 2017.
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