Mobil Announces 1999 Investment Program of $4.8 Billion

Mobil Corporation said it expects 1999 capital and exploration expenditures, including cash investments in equity companies, to be $4.8 billion, down about 11 percent from the estimated 1998 spending level of $5.4 billion. Mobil retains flexibility to revise the 1999 spending budget if crude oil prices fail to improve from current depressed levels or if additional attractive investment opportunities develop during the year. Mobil Chairman Lucio A. Noto said, "The 1999 investment program has been prudently scaled back in view of depressed industry conditions in most of our businesses, and Mobil's commitment to a disciplined level of spending. Projects have been prioritized, with only the most attractive investment opportunities being progressed." Of the total 1999 spending budget, $3.6 billion (75 percent) is attributable to Exploration & Producing, with another $0.8 billion in Marketing & Refining, $0.3 billion in Chemical and $0.1 billion related to corporate activities. U.S. Exploration & Producing spending is expected to be $0.4 billion, down nearly $0.2 billion from the 1998 level, with reduced expenditures planned for mature onshore programs and Mobile Bay. Spending for the Gulf of Mexico shelf is expected to be about flat, with the Chinook development in the eastern gulf offsetting lower spending in the central and western gulf, as those assets were swapped for Arco's upstream assets in California. The California assets increased Mobil's equity interest in Aera Energy, which is self-funded. Exploration and appraisal activity in the U.S. will continue to focus on deepwater Gulf of Mexico holdings.