Canadian regulators approved US supermajor ExxonMobil plans to tap a 48.4-million barrel satellite field at the Hibernia oil project in the Atlantic Ocean off Newfoundland, boosting output at the field where production has been declining for six years.

The Canada-Newfoundland and Labrador Offshore Petroleum Board, which oversees offshore oil exploration and production off the province's coasts, approved development plans for the AA block southeast of Hibernia's existing platform.

The regulator said the AA field could produce up to 25,000 barrels per day, supplementing the 98,200 bpd the field produced in June, though well below the more than 200,000 bpd the field produced in 2003.

According to regulatory documents, ExxonMobil and its partners in the Hibernia project will use the existing platform to produce oil from the AA block.

Four new wells are expected to be drilled at a cost of C$196 million ($177 million), according to Reuters.

Production from the block is expected to begin next year.

ExxonMobil was not immediately available for comment.

Partners in Hibernia, 315 kilometres (195 miles) southeast of St. John's, Newfoundland, are Canadian giant Suncor Energy with 20%, ExxonMobil, with 33.125%, US supermajor Chevron with 26.875%, US giant Murphy Oil with 6.5%, the government of Canada's Canada Hibernia Holding with 8.5%, and Norway’s StatoilHydro with 5%.