Transactions - MARCH 12, 2015

Exxon begins major production push

by Drew Campbell

ExxonMobil has begun drilling with its Deepwater Champion rig in a $200 million oil exploration project off the coast of western Guyana. ExxonMobil holds a 75 percent stake in the Liza prospect in the Stabroek block of the Essequibo region, with Shell owning the remaining 25 percent.

The project is part of a major push by Exxon to increase its oil and natural gas production and increase its daily oil-equivalent barrels by 4.3 million by 2017.

In 2015, ExxonMobil expects to increase production volumes 2 percent to 4.1 million oil-equivalent barrels per day, driven by 7 percent liquids growth. The volume increase is supported by the ramp up of several projects completed in 2014 and the expected startup of seven new major developments in 2015, including Hadrian South in the Gulf of Mexico, expansion of the Kearl project in Canada, Banyu Urip in Indonesia, and deepwater expansion projects at Erha in Nigeria and Kizomba in Angola.

In 2016 and 2017, production is expected to increase from several projects including Gorgon Jansz in Australia, Hebron in Eastern Canada, and expansions of Upper Zakum in the United Arab Emirates and Odoptu in eastern Russia.

“ExxonMobil has a deep and diverse portfolio of opportunities around the world and a total resource base of more than 92 billion oil-equivalent barrels,” says Tex Tillerson, ExxonMobil’s president and CEO.

ExxonMobil anticipates capital spending of about $34 billion in 2015, which is 12 percent less than in 2014. Annual capital and exploration expenditures are expected to average less than $34 billion in 2016 and 2017.

“We are capturing savings in raw materials, service, and construction costs,” Tillerson says.


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