IRVING, Texas, Jan. 4 /PRNewswire/ -- Exxon Mobil Corporation (NYSE: XOM)
announced today the completion of the $2-billion Sable Offshore Energy Project
off the coast of Nova Scotia, Canada, with the delivery of the first sales gas
into the Maritimes & Northeast Pipeline. The project consists of three
offshore platforms, a 125-mile subsea pipeline, natural gas-processing and
fractionation plants and a 650-mile gas sales pipeline to New England, and is
consistent with ExxonMobil's strategy of increasing gas and liquids production
and expanding opportunities in key markets.
Initial production to the project's newly-constructed gas plant in
Goldboro, Nova Scotia, commenced in mid-December and has averaged
approximately 100 million cubic feet per day (mcfd). Production is expected
to quickly ramp up to more than 400 mcfd and will further increase to more
than 500 mcfd within a year, upon completion of lateral gas pipelines in Nova
Scotia and New Brunswick.
"The on-budget completion of the Sable project in less than two years is
an impressive achievement and represents exceptional performance by the Sable
team," said Exxon Mobil Corporation Director and Senior Vice President Harry
Longwell. "Furthermore, Sable's natural gas wells have surpassed production
expectations and are delivering a new source of clean-burning natural gas to a
high-density market in New England and to new customers in the Canadian
Maritime Provinces."
First-phase production for the Sable project is from the Thebaud, Venture
and North Triumph natural gas fields, located about 125 miles off the coast of
Nova Scotia. Three additional fields are associated with a second phase of
development. The six fields are estimated to contain more than 3.5 trillion
cubic feet of natural gas and more than 100 million barrels of gas liquids.
Pre-production test rates for the six Sable wells drilled to date, ranging
from 50 mcfd to 100 mcfd, indicate they are some of the best natural gas
producers in Canadian history and will enable the project to exceed its target
for daily production.
"ExxonMobil is the leading oil and gas company in the Eastern Canadian
offshore with the largest exploration, production and development portfolio,"
said Longwell. "The completion of the Sable project strengthens that position
while building infrastructure to support additional development in the
region."
ExxonMobil's ownership in the project is through Mobil Canada
(50.8 percent) and its 70 percent interest in Imperial Oil, which has a
9 percent equity share of the Sable project. Other partners are Shell Canada
Ltd. (31.3 percent), Nova Scotia Resources Ltd. (8.4 percent) and Mosbacher
Operating Ltd. (0.5 percent).
Other ExxonMobil projects in Eastern Canada include the Hibernia project
(33.1 percent ExxonMobil equity interest), which began producing oil off
Newfoundland in November 1997, and a 22 percent interest in the Terra Nova
project, which is expected to begin production in early 2001.
ExxonMobil's exploration portfolio on the Grand Banks off Newfoundland
includes 13 significant discoveries and exploration permits covering
2.2 million acres. On the Scotian Shelf off Nova Scotia and in the Laurentian
Basin between Nova Scotia and Newfoundland, ExxonMobil holds 13 significant
discoveries and exploration permits covering 10.3 million acres.
SOURCE Exxon Mobil Corporation
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Related links:
http://www.exxon.mobil.com
CONTACT:
Dave Dickson of Exxon Mobil Corporation,
972-444-1108
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