Exxon Mobil Corporation (NYSE:XOM) announced today that its
subsidiary, Exxon Neftegas Limited (ENL), has completed drilling of
the Z-11 well, the longest measured depth extended-reach drilling
(ERD) well in the world. Located on Sakhalin Island offshore Eastern
Russia, the record-setting Z-11 achieved a total measured depth of
37,016 feet (11,282 meters) or over seven miles.
The multiphase Sakhalin-1 Project includes the Chayvo field which
is located 5 to 7 miles (8 to 11 kilometers) offshore. The Z-11 was
drilled to the Chayvo reservoir from the Yastreb rig, the world's
largest land-based drilling rig. Overall, the Chayvo field reached its
peak production rate of 250,000 barrels (34,000 metric tons) per day
in February 2007 after an on-schedule startup in October 2005. The
Z-11 is the 17th ERD producing well to be completed as part of the
Sakhalin-1 Project. It was drilled in 61 days, more than 15 days ahead
of schedule and below expected cost with no safety or environmental
incidents.
Since the first Sakhalin-1 well was drilled in 2003, the time
required to drill these world-class wells has been reduced by more
than fifty percent. When compared to industry benchmarks, Sakhalin-1
wells are the world's fastest drilled ERD wells.
"ExxonMobil, through the operatorship of Exxon Neftegas Limited,
is pleased that the Sakhalin-1 Consortium achieved this record-setting
milestone," said Neil Duffin, president of ExxonMobil Development
Company. "Our consortium is committed to the continuing development of
the Sakhalin-1 Project which will require significant investment,
planning, execution, operating expertise and the employment of
leading-edge technology."
The project team applied ExxonMobil proprietary technologies,
including Integrated Hole Quality (IHQ) technology and the Fast Drill
Process, to deliver the Z-11 well.
"The physics based modeling and experimental validations of our
IHQ technology allowed us to successfully design and drill the Z-11,"
said Steve Cassiani, president of ExxonMobil Upstream Research
Company. "With this technology we were able to take into account a
broad range of interdependent design variables including rock
strengths, stresses, and wellbore hydraulics to successfully drill
this well."
Used in conjunction with IHQ technology was an optimization
process called Fast Drill, which is a unique energy-based analysis
tool and work process that allows rig site and drilling engineering
personnel to maximize performance in every foot of hole drilled.
The Sakhalin-1 Project will bring significant economic benefits to
Russia including over US$50 billion in direct revenues to the Russian
state, major infrastructure improvements, technology transfer and the
supply of natural gas to customers in the Khabarovsk Krai in the
Russian Far East. Notably, over 80 percent of the Sakhalin-1 Project
drilling rig operators are Russian nationals and project contract
awards to Russian companies have reached approximately US$3.8 billion.
Exxon Neftegas Limited (30 percent interest) is operator for the
project, which includes the Japanese company Sakhalin Oil and Gas
Development Co. Ltd., (30 percent); affiliates of Rosneft, the Russian
state-owned oil company, RN-Astra (8.5 percent),
Sakhalinmorneftegas-Shelf (11.5 percent); and the Indian state-owned
oil company ONGC Videsh Ltd. (20 percent).
CAUTIONARY STATEMENT: Estimates, expectations, and business plans
in this release are forward-looking statements. Actual future results,
including production rates; cost efficiencies; project plans,
schedules, costs, and results; and commercial arrangements could
differ materially due to changes in long-term oil and gas price levels
or other market conditions affecting the oil and gas industry;
political or regulatory developments; reservoir performance; technical
or operating factors; the outcome of negotiations; and other factors
discussed under the heading "Factors Affecting Future Results"
included in Item 1A of ExxonMobil's most recent Form 10-K and posted
on our website (www.exxonmobil.com).
