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ExxonMobil's (XOM) Hibernia Oil Platform Starts Operations

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ExxonMobil Corporation’s (XOM - Free Report) Hibernia oil platform is slowly getting back to operations after the storm that disrupted production offshore Canada on Nov 16.

The Hibernia oil platform is located offshore Newfoundland and Labrador. Following a safety inspection, the company is undertaking inspection as production is underway from Nov 22. Other partners of Hibernia include Chevron Corporation (CVX - Free Report) , Suncor Energy Inc (SU - Free Report) , Murphy Oil, Hibernia Holding Corporation and Equinor ASA EQNR. Hibernia is second among the four producing fields in the area to restart operations. The company-operated Hebron field started production last Wednesday.

Even though the Hibernia platform was well equipped to endure the adverse weather condition and was kept operational during the storm, three of the eight Hibernia lifeboats were damaged and rendered immobile.

On Nov 16, post discussions between Canada’s offshore regulator — C-NLOPB — and the operator, operations at Hibernia were halted and the number of persons onboard were reduced to 175.Production remained shut during the week to facilitate evaluation of the damage and complete repairs.

As a result of the storm, Husky’s Sea Rose FPSO spilled 250 cubic meters (250,000 liters) of oil on Nov 16, after trying to restart production that were suspended due to adverse weather on Nov 14. The FPSO will be suspended until a full inspection of all facilities is complete and Husky has received the support and consent of the C-NLOPB.

Meanwhile, other operators offshore Canada are also evaluating their facilities for damage before restarting operations.

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Currently, ExxonMobil has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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