Nfld. & Labrador

ExxonMobil selling stake in Terra Nova oil project

For sale: 19 per cent share of oil project. Owner investing elsewhere.

Company seeking buyer for 19% share in project off Newfoundland

The Terra Nova FPSO heads along the Newfoundland coast in 2001. (Andrew Vaughan/Canadian Press)

ExxonMobil Corp. says its Canadian arm has put up for sale its 19 per cent interest in the Terra Nova offshore oil project 350 kilometres southeast of Newfoundland and Labrador.

Spokeswoman Suann Guthrie confirmed that the company is marketing its stake after a review of its portfolio to ensure it meets its strategic objectives.

She said the decision has no impact on Exxon's other assets in Canada, and added the company will remain a long-term investor in the province.

ExxonMobil Canada is the operator of the $14-billion Hebron offshore oil project off Newfoundland and Labrador, which pumped its first oil in November, and a part owner of the Hibernia offshore project.

It operates the Sable offshore natural gas project in Nova Scotia, which is being decommissioned due to production declines.

ExxonMobil CEO Darren Woods said in January the company would invest more than US$50 billion over the next five years to expand its business in the United States, helped by reduced U.S. federal taxes on corporations.

Calgary-based Suncor Energy is the operator of Terra Nova with a 38 per cent stake. Production began in 2002.