ExxonMobil Begins Construction of Project Offshore

Exxon Mobil Corporation has announced that its subsidiary, Mobil Equatorial Guinea, Inc. (MEGI), has awarded contracts and started construction to expand current production of the Zafiro field, offshore Equatorial Guinea. First production from the new $900 million project is scheduled for September 2003. The Zafiro field, located on Block B, is approximately 40 miles (65 kilometers) northwest of Malabo in water depths of 1,400-2,800 feet (425-850 meters). The new development, known as the Zafiro Southern Expansion Area, will utilize an early production system and recover about 150 million barrels of oil. The development consists of subsea wells tied back to a Floating, Production, Storage and Offloading (FPSO) vessel. The FPSO is capable of processing 110,000 barrels of oil per day and has about two million barrels of storage capacity. A total of 19 subsea wells are planned, and drilling is expected to continue until 2004. Commenting on the Zafiro expansion project, Morris Foster, president, ExxonMobil Development Company, said, "The start of construction activities marks an important milestone in commercializing the vast resources in the southern area of the Zafiro field. Production from this field will significantly enhance the strong performance of the Zafiro area and add to the overall production in country. As the largest producer in Equatorial Guinea, this new project demonstrates ExxonMobil's continuing commitment to Equatorial Guinea and the West African Region and will add to ExxonMobil's liquids production to meet the world's future energy needs."

Production from the Zafiro field began in August 1996. Current facilities include a fixed platform, a floating production unit, a floating storage and offloading unit and both platform and subsea wells. Production from the existing development is currently about 150,000 barrels of oil per day. ExxonMobil has a leading position in nearly all the major exploration and production areas in the world. The company is also a leading holder of deepwater acreage in the world's most attractive deepwater regions, including West Africa where it has interests in 19 blocks totaling 18 million gross acres. In Equatorial Guinea, ExxonMobil holds interests in two offshore deepwater blocks covering one million gross acres.