ExxonMobil Adds 2.7 Billion Barrels to Reserves; Replaces 183 Percent of 2017 Production
February 08 2018 - 9:00AM
Business Wire
- Exploration success and strategic
acquisitions add high-quality resources
- U.S. Permian Basin, Guyana, Mozambique
and Upper Zakum key factors in growth
- Nearly 10 billion oil-equivalent
barrels added to resource base, largest since XTO acquisition
Exxon Mobil Corporation (NYSE:XOM) said today it added 2.7
billion oil-equivalent barrels of proved oil and gas reserves in
2017, replacing 183 percent of production. ExxonMobil's proved
reserves totaled 21.2 billion oil-equivalent barrels at year-end
2017. Liquids represented 57 percent of the reserves, up from 53
percent in 2016. ExxonMobil’s reserves life at current production
rates is 14 years.
“Our exploration success and strategic acquisitions made during
a period of low commodity prices are adding high-quality resources
that are among the lowest cost of supply in the industry,” said
Darren W. Woods, chairman and chief executive officer.
“ExxonMobil’s portfolio of development opportunities positions us
to grow shareholder value as we bring on new supplies of oil and
natural gas to meet growing demand.”
During 2017, proved additions at Upper Zakum in Abu Dhabi
totaled more than 800 million barrels of crude oil. Additions from
liquids-rich unconventional plays in the United States, mainly in
the Permian Basin, totaled approximately 800 million oil-equivalent
barrels. Additions in the Permian are supported by ExxonMobil’s
growth plan and increased drilling activity, expected to increase
daily production to more than 600,000 oil-equivalent barrels by
2025.
Other significant new proved reserve additions were made in
Guyana, where the company funded the first phase of development
last year, and in Mozambique, associated with the project funding
of the Coral FLNG project in the gas-rich deepwater Area 4.
Offshore Guyana, ExxonMobil has discovered recoverable
resources, including current proved reserves and additional
resources, estimated to be 3.2 billion gross oil-equivalent barrels
prior to the 2018 Ranger discovery. Production from Liza Phase 1 is
expected to begin by 2020, less than five years after discovery. In
Mozambique, ExxonMobil acquired a 25 percent indirect interest in
Area 4, which contains an estimated 85 trillion gross cubic feet of
natural gas in-place.
Reserves additions reflect new developments as well as revisions
and extensions of existing fields resulting from drilling, studies
and analysis of reservoir performance.
Consistent with SEC requirements, ExxonMobil reports reserves
based on the average of the applicable market price prevailing on
the first day of each calendar month during the year. As a result
of higher prices in 2017 relative to 2016, about 900 million
oil-equivalent barrels in North America qualified as proved
reserves under SEC guidelines due primarily to the extension of the
projected economic end-of-field-life.
The annual reporting of proved reserves is the product of the
corporation’s long-standing, rigorous process that ensures
consistency and management accountability in all reserves
bookings.
Resource Base
ExxonMobil added 9.8 billion oil-equivalent barrels to its
resource base in 2017 through by-the-bit exploration discoveries
and strategic acquisitions. This was the largest addition to the
resource base since the acquisition of XTO Energy in 2010. The
resource base includes proved reserves, plus other discovered
resources that are expected to be ultimately recovered.
Through its acquisition of various entities from the Bass family
of Fort Worth, Texas in 2017, ExxonMobil added significant resource
in the Permian Basin, with upside potential in multiple additional
prospective horizons. The company continues to maximize capital
efficiency in its tight oil developments by taking advantage of
contiguous acreage to drill long laterals with optimized completion
designs.
Key resource additions were also made in deepwater Brazil
pre-salt with the acquisition of interest in the two billion gross
oil-equivalent-barrel Carcara field, onshore Papua New Guinea with
the acquisition of InterOil Corporation, and Mozambique with the
purchase of an interest in Area 4.
Three new discoveries offshore Guyana in 2017 also contributed
to the by-the-bit resource additions. Additional exploration
drilling in Guyana is planned in 2018 on the 11.5 million gross
acres currently held offshore.
ExxonMobil’s resource base totaled approximately 97 billion
oil-equivalent barrels at year-end 2017, taking into account field
revisions, production and asset sales.
About ExxonMobil
ExxonMobil, the largest publicly traded international energy
company, uses technology and innovation to help meet the world’s
growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. For more information, visit
www.exxonmobil.com or follow us on Twitter
www.twitter.com/exxonmobil.
CAUTIONARY NOTE: Proved reserve
figures in this release are based on current SEC definitions. The
reserves replacement ratio is calculated for a specified period
utilizing the applicable proved oil-equivalent reserves additions
divided by oil-equivalent production. The terms “resources” and
“resource base” include quantities of discovered oil and gas that
are not yet classified as proved reserves but that are expected to
be ultimately recovered in the future. The term “resource base” is
not intended to correspond to SEC definitions such as “probable” or
“possible” reserves. The term “in-place” refers to those quantities
of oil and gas estimated to be contained in known accumulations and
includes recoverable and unrecoverable amounts.
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