ExxonMobil Canada's decision to relocate to Newfoundland and Labrador is indicative of where the oil power is in Atlantic Canada, the mayor of the province's capital city said.

On Wednesday, the company confirmed that incoming president Meg O'Neill will be switching operations from Halifax to St. John's sometime next month. The company's level of activity in the province is reflected in its decision to move, ExxonMobil said.

St. John's Mayor Dennis O'Keefe said he's delighted by the decision.

"It's an implicit recognition by Exxon Mobil that the oil and gas play is in this province. It's in N.L. and they're moving their decision-making process out of Halifax into the city and the province where the action currently is and will be for a long time to come," O'Keefe told CBC News on Thursday.

The company is among the biggest players in the province's offshore industry. The mayor said the move to his city sums up the way things are in the Canadian oil patch.

"It's a recognition of the fact that the centre of the world when it comes to oil and gas in Eastern Canada is no longer, never was anyhow, Halifax but the wonderful city of St. John's and it is absolutely terrific," said O'Keefe.