Exxon Mobil Begins Production at Erha North Offshore Nigeria Project

By Chelsey Dulaney 

Exxon Mobil Corp. said Wednesday that it has begun production at its new Erha North project offshore Nigeria five months ahead of schedule, while affirming its forecast for 2% production growth this year.

The deepwater project is located 60 miles offshore Nigeria and inclues seven wells, with expected peak production of 65,000 barrels of oil a day. It will be tied to an existing Erha North floating production, storage and offloading vessel, helping reduce infrastructure.

Exxon said the project came in ahead of schedule and $400 million under budget due to the performance of its Nigerian contractors.

The U.S. oil giant also on Wednesday affirmed its forecast for 2% production growth in 2015 to 4.1 million oil-equivalent barrels per day.

While Exxon's profit has tumbled in recent quarters amid the drop in crude prices, its production has continued to grow. In the second quarter, the company's profit tumbled 52%, while production improved 3.6% to 4 million oil-equivalent barrels per day.

Shares of Exxon, down 20% this year, added 1.5% to $73.98 a share in morning trading.

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(END) Dow Jones Newswires

September 16, 2015 10:45 ET (14:45 GMT)

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