Exxon Mobil Corporation (NYSE:XOM) announced today that
its subsidiary, Exxon Neftgas Limited, has commissioned the crude oil
export system for the multiphase Sakhalin-1 project offshore Russia,
bringing to eight the total of ExxonMobil-operated startups within the
last 12 months. These significant projects, located in the North Sea,
Malaysia, Qatar and in West Africa, are expected to deliver peak gross
rates in excess of 1,000,000 barrels a day of oil and more than 1.5
billion cubic feet of daily gas to world energy markets. In addition,
last month ExxonMobil and its partners announced the start of
construction of a new LNG terminal on the Texas Gulf Coast that will
help meet growing U.S. natural gas demand.
First oil for Sakhalin-1 began flowing into the export system on
August 29, and it is expected the initial tanker will begin loading at
the newly-constructed DeKastri terminal this month. Oil production
should ramp up to an estimated peak rate of 250,000 barrels a day by
the end of 2006, following completion of the Onshore Processing
Facility. In addition to the terminal, the export project includes a
24-inch, 140 mile pipeline and a tanker loading facility designed for
year-round crude oil transport.
"The startup of Sakhalin-1 exports will provide additional needed
energy supplies to the expanding economies of Asia and to other global
customers," said Stuart McGill, senior vice president of Exxon Mobil
Corporation. "This project is another example of a long-lead time,
technology intensive development brought to fruition this past year to
help address the world's ever-growing energy demand."
ExxonMobil has increased daily oil and gas production during the
second quarter 2006 by 6 percent compared to the same period last
year(1). This additional supply is from developments such as Kizomba B
offshore Angola; Yoho, Erha and the Additional Oil Recovery project
offshore Nigeria; Ras Gas Train 4 and the Al Khaleej Gas project in
Qatar; the Arthur project in the U.K. sector of the North Sea; the
Guntong Hub in Malaysia; as well as others in which the company holds
interest.
Last month, ExxonMobil and its co-venture partners Qatar Petroleum
and ConocoPhillips, announced the start of construction of the Golden
Pass Liquefied Natural Gas (LNG) terminal in Sabine Pass, Texas. This
billion-dollar construction project will serve U.S. markets and is
expected to import two billion cubic feet of natural gas a day by
2009. Golden Pass is part of the company's worldwide program to expand
LNG imports to major markets. In addition to Golden Pass, construction
of LNG terminals is proceeding in the United Kingdom and offshore
Italy with additional facilities under consideration.
With global energy demand expected to increase by almost 50
percent by 2030, and new supplies increasingly found far from the
world's major consuming nations, Sakhalin-1, Golden Pass and these
other new projects are vital links in an increasingly interdependent
global energy supply network. Projects referenced in this release are
part of ExxonMobil's ongoing capital construction program that will
invest approximately $20 billion in major global projects in 2006
alone.
(1) Excluding the impact of divestments and entitlement effects,
ExxonMobil increased production 9 percent over the same period last
year.
CAUTIONARY STATEMENT: Estimates, expectations, and business plans
in this release are forward-looking statements. Actual future results,
including production rates and sales volumes; project plans,
schedules, and capacities; 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; timely completion
of development projects; technical or operating factors; the outcome
of commercial negotiations; and other factors discussed under the
heading "Factors Affecting Future Results" posted in the Investor
Information section of our website (www.exxonmobil.com). References to
quantities of oil and gas include volumes that are not yet classified
as proved reserves but that we believe will be produced in the future.
