Exxon Mobil Corporation (ticker: XOM, exchange: New York Stock Exchange (.N))
News Release -
ExxonMobil Subsidiary Awards Contracts for Nigeria East Area Additional Oil Recovery Project
IRVING, Texas--(BUSINESS WIRE)--July 9, 2003--Exxon Mobil
Corporation (NYSE:XOM) announced today that its subsidiary, Mobil
Producing Nigeria (MPN), operator of the Nigeria National Petroleum
Corporation (NNPC/MPN) Joint Venture, has awarded major contracts for
the East Area Additional Oil Recovery (AOR) project offshore Nigeria.
The $1.7 billion project will re-inject gas to improve oil
recovery from multiple reservoirs in the Joint Venture area and
eliminate routine flaring. The development is expected to increase
production by approximately 110,000 barrels per day and ultimate
recovery in the NNPC/MPN Joint Venture area by more than 500 million
The AOR project will consist of gas gathering pipelines, gas
compression, gas re-injection pipelines and associated facilities. It
will be located approximately 20 miles (32 kilometers) offshore
Nigeria in water depths of 85 to 110 feet (26 to 34 meters). Startup
is scheduled in 2006.
"The East Area Additional Oil Recovery project demonstrates our
continued commitment to the efficient development of Nigeria's oil and
gas resources," said Rex Tillerson, senior vice president, Exxon Mobil
Corporation. "The project is a good example of our ability to
effectively execute large, complex projects and achieve maximum
economic recovery in mature field areas. The project will also
eliminate gas flaring in our offshore operations two years ahead of
Nigeria's national objective to eliminate flaring by 2008."
Engineering, Procurement and Construction (EPC) contracts valued
at more than $800 million were awarded for the compression platforms,
pipelines and riser platforms. The project will contribute substantial
direct and indirect benefits to the Nigerian economy through project
spending and employment. Nigerian contractors and suppliers will be
used for significant aspects of the development including fabrication
of seven major structures, pipe coatings and offshore construction.
ExxonMobil's subsidiary, MPN, holds a 40 percent interest in the
NNPC/MPN Joint Venture, which has a current production capacity of
750,000 barrels per day of petroleum liquids. The Federal Government
of Nigeria holds the remaining 60 percent interest through the NNPC.
In Nigeria, ExxonMobil subsidiaries also hold interests in six
deepwater blocks covering 3.2 million acres. The company has a leading
position in nearly all the accessible major exploration and production
areas in the world, the industry's strongest portfolio of proprietary
technology and is a leader in the application and development of
exploration and production technology.
CAUTIONARY STATEMENT: Estimates and business plans in this release
are forward-looking statements. Actual future results, including
resource recoveries, production rates, and project plans and
schedules, could differ materially due to changes in market conditions
affecting the oil and gas industry, local or international political
events, technical or operating factors, and other factors discussed
under the heading "Factors Affecting Future Results" included in Item
1 of ExxonMobil's most recent Form 10-K and posted on our website
(www.exxonmobil.com). References to oil and gas include quantities
that are not yet classified as proved reserves but that we believe
will ultimately be produced.
Marcia Zelinsky, 713/656-4376
SOURCE: Exxon Mobil Corporation