Exxon says it is selling its entire stake in the Terra Nova project, but will keep its other assets in the region.  Wikipedia photo by Ice Specialist.

Exxon has 19 per cent ownership in Terra Nova project

On Tuesday, ExxonMobil Corp announced it is selling its entire stake in the Terra Nova project located off the east coast of Newfoundland Labrador.

Despite the Exxon selling its entire 19 per cent stake in the project, the world’s largest publicly traded oil producer says it is committed to remaining an investor in the area.

Suann Guthrie, Exxon spokeswoman confirmed the sale and added “we continuously review our asset portfolio to ensure it meets our strategic objectives”.

Reuters reports that data and a document from Schlumberger’s oil and gas asset sale business says initial bids are due on March 30.

Terra Nova is located about 217 miles off Newfoundland and Labrador and has recoverable reserves of 406 million barrels of oil.

The project uses a floating production storage and offloading vessel.  Production in the second largest oil field located off the eastern coast of Canada began in 2002 and the reservoir has a life expectancy of 18 years.

According to the field operator, Suncor, the Terra Nova field is made up of a combination of producing wells, water injection wells and gas injection wells, with production from the Graben, East Flank and Far East blocks.

To date, the project has produced about 400 million barrels of oil and produces about 31,000 barrels per day from 30 wells.

Suncor, PetroCanada, Husky Oil and Murphy Oil are other partners in the project.