The company plans to use a gravity-based structure to recover more than 700 million barrels of oil from the field, at a rate of 150,000 barrels per day, for a total capital cost of $14 billion. Exxon's Canadian subsidiary will own 36% of the project, with Chevron's (NYSE:CVX) Canadian subsidiary owning 26.7%, Suncor Energy (NYSE:SU) 22.7%, Statoil's (NYSE:EQNR) Canadian subsidiary 9.7%, and Nalcor Energy Oil and Gas 4.9%.
Production is slated to begin around the end of 2017. Regulatory approvals from the governments of Canada, Newfoundland, and Labrador have already been secured. Front-end engineering and design for the structure has already been completed, as well.
Exxon shares closed 0.5% higher after the news Friday, at $88.96.
Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron Corp and Statoil (ADR). The Motley Fool owns shares of ExxonMobil Corp. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.