ExxonMobil Taps FMC for Julia Equipment

Exxon Mobil Corp. has awarded FMC Technologies, Inc. a subsea equipment order for the Julia development in the Gulf of Mexico. FMC's scope of supply includes six subsea trees, a manifold and associated tie-in equipment.

"FMC Technologies is pleased to provide ExxonMobil with subsea systems for this offshore project," said Tore Halvorsen, FMC Technologies' senior vice president, subsea technologies, in a statement. "We look forward to supporting ExxonMobil as they overcome the technological challenges of this ultra deepwater development."

Julia was discovered in 2007 and is estimated to hold almost 6 billion barrels of oil. The field is located in the Walker Ridge area in about 7,000 feet of water. The $4 billion project is expected to start producing in 2016. Phase 1 of the development will be designed to produce 34,000 barrels of oil per day from six subsea wells connecting to the Jack/St. Malo production facility.

Development drilling on the field is planned to kick-off in 2014 in waters ranging from 4,000 to 8,700 feet.

ExxonMobil operates the field with a 50 percent stake while Statoil holds the remaining percentage.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Turkey's State Oil Co, ExxonMobil to Develop Oil Projects in Kurdistan

ISTANBUL - Turkey's state-run oil firm has struck an agreement with U.S. oil giant Exxon Mobil Corp. to develop joint projects in Kurdish-administered northern Iraq, Prime Minister Recep Tayyip Erdogan said Tuesday.

Mr. Erdogan also said that Turkey can pursue separate arrangements with the Erbil-based Kurdistan Regional Government, or KRG.

"Countries from various parts of the world are taking steps to explore and produce oil in different parts of Iraq, and then deliver it to world oil markets," he said. "There's nothing more normal, more natural than Turkey, which provides all kinds of support and aid to its next-door neighbor, to take a step that is based on mutual benefit."

The prime minister's statements, made just before he departed for the U.S. to meet with President Barack Obama, could herald an expansion of Turkey's influence in the energy-rich north of Iraq and help it generate enough energy to meet rising demand amid a robustly growing economy.

But Washington has also been cool on ventures that lack Baghdad's approval, fearing that empowering regional players such as the Kurds and Sunnis may push Iraqi Prime Minister Nouri al-Maliki, a Shia, closer to Iran and tip the delicate power balance in the Middle East following the U.S. withdrawal from Iraq, analysts say.

"The U.S. administration has consistently sent the same signals and repeated the same message: 'We want this to be done with Baghdad as part of a win-win-win formula involving Ankara, Erbil and Baghdad.' Obviously, by signing an agreement Turkey and Iraqi Kurds have moved to a certain stage, but whether this happens will depend to a great extent on what happens in Washington," said Bulent Aliriza, director of the Turkey Project at the Center for Strategic & International Studies in Washington.

Exxon Mobil declined to comment on the agreement announced by Turkey's prime minister. The Kurdish regional government couldn't immediately be reached for comment.

"The deal [between Turkey's oil company and Exxon to explore in Iraqi Kurdistan] is illegal and is not in line with the Iraqi constitution. Any agreement signed without the approval of the central government is illegal," said Faisal Abdullah, spokesman for Hussein al-Shahristani, Iraq's deputy prime minister for energy.

Striking an agreement with Ankara offers Iraqi Kurdistan a gateway to export its huge reserves of crude oil directly to world markets via Turkey, after a new pipeline is completed.

The move may also have destabilizing effects, coming at a time when Sunni-Shia tensions in Iraq are mounting and Mr. Maliki is seeking to assert Baghdad's authority across the country.

The Kurdish regional government and the Shia-Arab-led central government dispute control of territory, oilfields and revenue sharing from energy resources in Iraq. A KRG-Turkey deal could also deepen growing rifts between Baghdad and Ankara.

Some analysts said Tuesday's announcement contrasts sharply with a carefully honed policy in Ankara. Turkish officials have consistently called for the territorial integrity of Iraq and reiterated that they won't pursue any deals that would undermine the country's stability.

The Iraqi central government in Baghdad has long opposed the KRG's agreements with oil companies and plans for oil exports to Turkey.

"The regional government in northern Iraq has a constitutional right to 17% of [oil and gas] revenues," Mr. Erdogan said. "Since it has the ability to readily spend that share, it's in its right to use that in exchanges with Turkey.

"It is possible for us to have mutual agreements, there's nothing to prevent that," he told reporters in televised comments from Ankara before boarding his jet.

There is a deep divide between Erbil and Baghdad about the interpretation of Iraq's constitution. The Kurds maintain that it allows them the right to grant new contracts while letting the central government manage existing licenses. Yet Mr. Maliki says all new agreements need to be approved by Baghdad.

To get its energy framework with Iraqi Kurdistan moving, Turkey would have to persuade Washington to back the deal, analysts say.

"This is a step with the regional government in northern Iraq for exploration there. Now, to get results from this move, we need to get done with this trip with good results, our steps will mature accordingly," Mr. Erdogan said ahead of his meeting with Mr. Obama.

Still, that hasn't stopped drilling in northern Iraq by energy giants like Exxon Mobil and Chevron Corp., as well as smaller explorers such as Turkey-based Genel Energy PLC, run by former BP PLC (BP) chief Tony Hayward.

Genel Energy, which is listed in London and has been active in Iraqi Kurdistan since 2002, is already pumping oil and selling mostly to the domestic market. The KRG is using some of Genel's oil in a barter trade with Turkey, which provides the Kurdish government with processed petroleum products such as kerosene and fuel oil.

Hassan Hafidh, Ali Abbas and Tom Fowler contributed to this article.

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ExxonMobil Taps FMC for Julia Equipment

Exxon Mobil Corp. has awarded FMC Technologies, Inc. a subsea equipment order for the Julia development in the Gulf of Mexico. FMC's scope of supply includes six subsea trees, a manifold and associated tie-in equipment.

"FMC Technologies is pleased to provide ExxonMobil with subsea systems for this offshore project," said Tore Halvorsen, FMC Technologies' senior vice president, subsea technologies, in a statement. "We look forward to supporting ExxonMobil as they overcome the technological challenges of this ultra deepwater development."

Julia was discovered in 2007 and is estimated to hold almost 6 billion barrels of oil. The field is located in the Walker Ridge area in about 7,000 feet of water. The $4 billion project is expected to start producing in 2016. Phase 1 of the development will be designed to produce 34,000 barrels of oil per day from six subsea wells connecting to the Jack/St. Malo production facility.

Development drilling on the field is planned to kick-off in 2014 in waters ranging from 4,000 to 8,700 feet.

ExxonMobil operates the field with a 50 percent stake while Statoil holds the remaining percentage.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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ExxonMobil, Statoil to Begin Developing Julia Oil Field in Gulf of Mexico

Exxon Mobil Corp. and Statoil ASA have agreed to begin jointly developing the Julia oil field, estimated to hold nearly six billion barrels of resources, in the Gulf of Mexico.

The companies each own a 50% stake in the field, located about 200 miles south of New Orleans, La., and which is expected to take about three years to develop.

Exxon said capital cost for the project, which is expected to begin oil production in 2016, is estimated to be more than $4 billion.

The field will initially produce 34,000 barrels of oil a day and includes six wells with subsea tie-backs to the Jack & St. Malo production facility operated by Chevron U.S.A. Inc.

Two weeks ago, Exxon reported its first-quarter profit rose slightly compared with last year but its production of oil and natural gas fell for the seventh consecutive quarter on a year-over-year basis.

Shares of Exxon slid seven cents to $91.08 in after-hours trading. The stock is up 7.9% over the past 12 months.

Last week, Norwegian oil and gas company Statoil posted 58% lower first-quarter net profit on the year, missing expectations amid lower production volumes and lower prices.

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ExxonMobil 1Q Up on Slightly Improved Margins

First quarter earnings for Exxon Mobil Corp. rose 1 percent earning $9.5 billion, while earnings per share increased 6 percent and capital and exploration expenditures were up 33 percent, compared to a year earlier.  

Quarterly profit increased due to higher earnings in its chemical business but oil and gas production decreased, the company said in a conference call with reporters Thursday. On an all oil-equivalent basis, production fell 3.5 percent from the first quarter of 2012; and excluding the impacts of entitlement volumes, Organization of Petroleum Exporting Countries  quote effects and divestments, production decreased 1.2 percent, the company added.

ExxonMobil's total production in the quarter averaged 4.4 million barrels of oil equivalent per day, declining 3.5 percent from the same quarter a year ago.

"ExxonMobil achieved strong results during the first quarter of 2013, while investing significantly to develop new energy supplies," commented ExxonMobil's Chairman Rex W. Tillerson in a press release. "ExxonMobil's financial performance enables continued investment to deliver the energy needed to help meet growing demand, support economic growth, and raise living standards around the world."

The company boosted its quarterly dividend by 11 percent to $.63/share, but trimmed 2Q 2013 share repurchase to $4 billion, analysts at Oppenheimer noted.

"As the largest publicly traded oil and gas company, [ExxonMobil] has long been a core holding for investors seeking a defensive investment with continued dividend growth," added Oppenheimer. "Low volatility, financial strength, capital discipline, operating efficiency and strong management are its most attractive characteristics, in our view. Barring an unlikely major acquisition, we don't see any catalyst in the next 12 months that could lift share performance above the S&P 500." 

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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ExxonMobil 1Q Up on Slightly Improved Margins

First quarter earnings for Exxon Mobil Corp. rose 1 percent earning $9.5 billion, while earnings per share increased 6 percent and capital and exploration expenditures were up 33 percent, compared to a year earlier.  

Quarterly profit increased due to higher earnings in its chemical business but oil and gas production decreased, the company said in a conference call with reporters Thursday. On an all oil-equivalent basis, production fell 3.5 percent from the first quarter of 2012; and excluding the impacts of entitlement volumes, Organization of Petroleum Exporting Countries  quote effects and divestments, production decreased 1.2 percent, the company added.

ExxonMobil's total production in the quarter averaged 4.4 million barrels of oil equivalent per day, declining 3.5 percent from the same quarter a year ago.

"ExxonMobil achieved strong results during the first quarter of 2013, while investing significantly to develop new energy supplies," commented ExxonMobil's Chairman Rex W. Tillerson in a press release. "ExxonMobil's financial performance enables continued investment to deliver the energy needed to help meet growing demand, support economic growth, and raise living standards around the world."

The company boosted its quarterly dividend by 11 percent to $.63/share, but trimmed 2Q 2013 share repurchase to $4 billion, analysts at Oppenheimer noted.

"As the largest publicly traded oil and gas company, [ExxonMobil] has long been a core holding for investors seeking a defensive investment with continued dividend growth," added Oppenheimer. "Low volatility, financial strength, capital discipline, operating efficiency and strong management are its most attractive characteristics, in our view. Barring an unlikely major acquisition, we don't see any catalyst in the next 12 months that could lift share performance above the S&P 500." 

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Mexico's Pemex Renews Scientific Accord with ExxonMobil

MEXICO CITY - Mexico's state-owned oil monopoly Petroleos Mexicanos, or Pemex, said Wednesday it signed a noncommercial agreement with Exxon Mobil Corp. to share technical and scientific information of mutual interest.

Pemex said in a press release that the five-year agreement renews the two oil companies' relations in matters of cooperation. "The goal of this agreement is to define our collaboration in the areas of investigation, scientific development, technical and human resources in exploration, drilling, production, transportation and storage of hydrocarbons," the statement said.

Pemex said the accord did not represent any type of service agreement and did not involve compensation.

Pemex is one of the top oil producers in the world, with about 2.55 million barrels of crude oil a day, along with natural gas production, refineries and other operations. Pemex's biggest operations are in the "easy oil" areas of the shallow southern waters of the Gulf of Mexico, where production has been declining for the last eight years.

ExxonMobil is the world's largest publicly traded international oil and gas company, and produces in nonconventional areas like the deep waters of the Gulf of Mexico on the U.S. side. Pemex is just starting exploration in the deep waters of the Mexican side of the Gulf.

Mexico's new president, Enrique Pena Nieto, is negotiating an energy overhaul with legislators to draw more private investment while bolstering the finances of Pemex, which gives nearly all of its profits to the federal government for its budget.

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ExxonMobil Plans World's Biggest FLNG Facility

SYDNEY - ExxonMobil Corp. laid out plans for a development using the world's biggest floating natural gas processing plant, in a technically challenging move that underscores its bullish view on Asian demand for the fuel.

Exxon and partner BHP Billiton Ltd. want to anchor a vessel extending 495 meters--the equivalent of around five football pitches--at sea to tap into the remote Scarborough natural gas field offshore Western Australia. They're seeking government approval for the multibillion dollar project, and targeting first production as early as 2020.

Floating liquefied natural gas technology, known as FLNG, is untried but has captured the attention of some of the world's biggest energy companies seeking to access gas fields that are too small or remote to develop using pipelines and onshore facilities. Royal Dutch Shell PLC is a leading proponent of FLNG vessels, which it plans to deploy in Australia and possibly elsewhere.

The relative calm of the waters off Australia's northeastern coastline make the country a strong candidate to accommodate the world's first FLNG vessels. Its stable political environment and proximity to Asian markets that have a growing appetite for fuels that are cleaner than coal when burnt are also drawcards. According to the International Energy Agency, China's natural gas demand alone will more than quadruple to 545 billion cubic meters between 2011 and 2035.

However, companies like Exxon need to ensure their vessels can withstand stormy seas. One main concern is that the forces generated by liquefied gas sloshing in partially filled containers can damage the storage system. That issue is being addressed with containers designed to minimize sloshing and with elaborate anchoring systems that limit the movement of vessels in the water.

Exxon's proposed facility would produce between 6 million and 7 million metric tons of liquefied natural gas, or LNG, a year for several decades. The Scarborough resource was discovered in 1979 and is estimated to hold up to 10 trillion cubic feet of gas--equal to more than a third of the U.S.'s annual gas consumption.

Early design work would begin next year, ahead of a final investment decision in 2014-15, Exxon said in a filing to the federal government's environment department. A Melbourne-based spokeswoman for Exxon said FLNG has "the capacity to reduce our capital costs by removing the need for infrastructure" and has a smaller environmental footprint.

With close to a dozen natural-gas export terminals planned for its coastline, Australia is poised to leapfrog Qatar as the world's top exporter of LNG by the end of the decade. LNG is natural gas chilled to a liquid so that it can be shipped by tanker.

The industry, however, is facing increasing cost headwinds driven by a strong local currency and a shortage of skilled labor. Underscoring these challenges, Chevron Corp. and smaller joint venture partners including Exxon and Shell said in December the cost of building their giant Gorgon LNG project on the Western Australian coast had blown out by a fifth to 52 billion Australian dollars (US$54.4 billion).

The budget overruns come as Australia becomes increasingly likely to face rising competition from emerging gas-export industries in North America and Africa, which could make it tougher to secure customers.

FLNG is often touted by company executives as a means of mitigating cost pressures because much of the construction process occurs offshore in countries with cheaper sources of labor. Companies also don't have to pay for acquiring and clearing land.

"For some of the more economically challenged gas resources out there, floating LNG is going to take on a much higher profile," said Andrew Williams, a Melbourne-based energy analyst at RBC Capital Markets.

In 2011, Shell committed to use a FLNG vessel to process natural gas from its Prelude field in the Browse Basin offshore northwestern Australia. The vessel is due to begin producing 3.6 million tons of LNG each year from 2017.

Shell estimated that its project would cost between US$3 billion and US$3.5 billion for every 1 million tons of production capacity, or between US$10.8 billion and US$12.6 billion.

In its filing Tuesday, Exxon didn't estimate a cost for its Scarborough development.

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ExxonMobil Plans World's Biggest FLNG Facility

SYDNEY - ExxonMobil Corp. laid out plans for a development using the world's biggest floating natural gas processing plant, in a technically challenging move that underscores its bullish view on Asian demand for the fuel.

Exxon and partner BHP Billiton Ltd. want to anchor a vessel extending 495 meters--the equivalent of around five football pitches--at sea to tap into the remote Scarborough natural gas field offshore Western Australia. They're seeking government approval for the multibillion dollar project, and targeting first production as early as 2020.

Floating liquefied natural gas technology, known as FLNG, is untried but has captured the attention of some of the world's biggest energy companies seeking to access gas fields that are too small or remote to develop using pipelines and onshore facilities. Royal Dutch Shell PLC is a leading proponent of FLNG vessels, which it plans to deploy in Australia and possibly elsewhere.

The relative calm of the waters off Australia's northeastern coastline make the country a strong candidate to accommodate the world's first FLNG vessels. Its stable political environment and proximity to Asian markets that have a growing appetite for fuels that are cleaner than coal when burnt are also drawcards. According to the International Energy Agency, China's natural gas demand alone will more than quadruple to 545 billion cubic meters between 2011 and 2035.

However, companies like Exxon need to ensure their vessels can withstand stormy seas. One main concern is that the forces generated by liquefied gas sloshing in partially filled containers can damage the storage system. That issue is being addressed with containers designed to minimize sloshing and with elaborate anchoring systems that limit the movement of vessels in the water.

Exxon's proposed facility would produce between 6 million and 7 million metric tons of liquefied natural gas, or LNG, a year for several decades. The Scarborough resource was discovered in 1979 and is estimated to hold up to 10 trillion cubic feet of gas--equal to more than a third of the U.S.'s annual gas consumption.

Early design work would begin next year, ahead of a final investment decision in 2014-15, Exxon said in a filing to the federal government's environment department. A Melbourne-based spokeswoman for Exxon said FLNG has "the capacity to reduce our capital costs by removing the need for infrastructure" and has a smaller environmental footprint.

With close to a dozen natural-gas export terminals planned for its coastline, Australia is poised to leapfrog Qatar as the world's top exporter of LNG by the end of the decade. LNG is natural gas chilled to a liquid so that it can be shipped by tanker.

The industry, however, is facing increasing cost headwinds driven by a strong local currency and a shortage of skilled labor. Underscoring these challenges, Chevron Corp. and smaller joint venture partners including Exxon and Shell said in December the cost of building their giant Gorgon LNG project on the Western Australian coast had blown out by a fifth to 52 billion Australian dollars (US$54.4 billion).

The budget overruns come as Australia becomes increasingly likely to face rising competition from emerging gas-export industries in North America and Africa, which could make it tougher to secure customers.

FLNG is often touted by company executives as a means of mitigating cost pressures because much of the construction process occurs offshore in countries with cheaper sources of labor. Companies also don't have to pay for acquiring and clearing land.

"For some of the more economically challenged gas resources out there, floating LNG is going to take on a much higher profile," said Andrew Williams, a Melbourne-based energy analyst at RBC Capital Markets.

In 2011, Shell committed to use a FLNG vessel to process natural gas from its Prelude field in the Browse Basin offshore northwestern Australia. The vessel is due to begin producing 3.6 million tons of LNG each year from 2017.

Shell estimated that its project would cost between US$3 billion and US$3.5 billion for every 1 million tons of production capacity, or between US$10.8 billion and US$12.6 billion.

In its filing Tuesday, Exxon didn't estimate a cost for its Scarborough development.

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ExxonMobil: A Few Thousand Barrels of Oil Seen in Arkansas Spill Area

Exxon Mobil Corp. said Saturday that it is working to clean up thousands of barrels of oil that spilled from its pipeline into a Mayflower, Ark., residential neighborhood Friday afternoon.

The U.S. Environmental Protection Agency is categorizing the incident as a "major spill," the company said, which means that more than 250 barrels of oil have been released. Exxon said "a few thousand barrels of oil" have been observed in the area, but the company is staging a response worthy of a spill of more than 10,000 barrels "to be conservative."

Mayflower is in Faulkner County, about 25 miles outside of Little Rock, Ark. The city evacuated 22 homes Friday as oil flowed into yards and through the streets. Exxon said Saturday it had about 100 workers in the area and had deployed 2,000 feet of containment boom and had 15 vacuum trucks were at work cleaning up the oil Saturday afternoon. The company said it has recovered 4,500 barrels of oil and water.

On Saturday, Faulkner County Judge Allen Dodson said the U.S. EPA has estimated that as much as 2,000 barrels have been released into the neighborhood, but so far, responders have been able to stop that oil from flowing into Lake Conway, a nearby 6,700-acre freshwater lake. Mr. Dodson said it looks like the cleanup effort might take several weeks. On Saturday crews were working to keep the oil contained even as rain pelted the earthen dams put in place to hold the oil back, he said.

"We're dealing with added water flow from the rain," Mr. Dodson said.

If the early estimates prove to be correct, the spill could be larger than a 2011 pipeline leak into the Yellowstone River in Montana. On Monday U.S. pipeline regulators proposed a $1.7 million fine against Exxon for allegedly not doing enough to prevent that leak of about 1,500 barrels of crude into the river after the pipeline ruptured during severe flooding. The regulators also proposed that Exxon employees be required to put in place a training program to teach employees how to react to emergencies at the company's pipelines. Exxon said it was disappointed in the regulators' findings, and that it has applied lessons learned from the Montana spill to its remote control valve procedures and operator training.

In a filing with the National Response Center Friday, Exxon reported that the amount of oil released was unknown, but told regulators that the "incident may be a significant material release."

Exxon said Friday evening that the pipeline, which carries oil from a hub in Patoka, Ill. to the Texas Gulf Coast, was shut in. The pipeline delivers oil to the Sunoco Logistics terminal in Nederland, Texas, where it is then shipped to various Houston area refiners, according to the Exxon Pipeline Co.'s website.

Ben Lefebvre contributed to this article.

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ExxonMobil to Boost Output at Iraq West Qurna-1 by Mid 2013

U.S. energy giant Exxon Mobil Corp. and its partners are planning to increase crude oil production from West Qurna-1 oil field in southern Iraq to 530,000 barrels a day by July, from 495,000 barrels a day now, a senior Iraqi oil official said Monday.

Mahdi Abdul Razzaq al-Maliki, head of the field's joint management committee, said the consortium, which also includes Royal Dutch Shell PLC and Iraq, is planning to raise output from West Qurna-1 to 600,000 barrels a day by the end of 2013.

"According to this year's plan which has been approved by the oil ministry, the consortium will invest some $1.65 billion compared with $1 billion invested last year," Mr. al-Maliki told Dow Jones Newswires.

Iraq, a member of the Organization of the Petroleum Exporting Countries, is targeting a total output of 4.5 million barrels a day next year from 3.3 million barrels a day now, the Iraqi prime minister's top energy advisor, Thamir Ghadhban, said.

New oil fields, being developed by some of the world's largest oil companies will come on stream this year such as Majnoon, which is being developed by Shell, West Qurna-2 being developed by OAO Lukoil Holdings and Garraf oil field, which is being upgraded by a consortium led by Malaysia's Petronas and Japan Petroleum Exploration Co., or Japex.

Exxon is in a row with the Iraqi government over deals it signed with the semi-autonomous region of Kurdistan in northern Iraq. The Baghdad government says that Exxon should choose between its southern oil field and its deal in the north. Baghdad and Kurdistan are at logger heads over who should control oil resources in the Kurdish region.

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BG, Statoil, ExxonMobil Further Boost East African Gas Resources

LONDON - BG Group PLC Monday said it had completed an appraisal program that further confirmed the natural gas resource and production potential offshore Tanzania, underscoring East Africa's importance as one of the energy industry's hottest new regions.

Separately, Statoil ASA and partner ExxonMobil Corp. announced Monday their third discovery in Block 2 offshore Tanzania.

The mounting volume of gas discoveries off the coast of East Africa has stimulated a wave of interest in the region, culminating in China National Petroleum Corp.'s $4.21 billion acquisition last week of 20% of Eni SpA's giant Mozambique offshore natural gas field.

Anadarko Petroleum Corp. has also attracted interest from several companies including Exxon Mobil, Royal Dutch Shell PLC, India's state-run Oil & Natural Gas Corp. and Oil India Ltd. with the offer of a share of its natural gas discoveries offshore Mozambique, people familiar with the matter told Dow Jones Newswires last week.

BG Group said testing on its Jodari-1 field offshore Tanzania showed better-than-expected reservoir properties, demonstrating that wells could produce at higher rates. BG Group holds a 60% interest in the discoveries offshore Tanzania, with Ophir Energy holding 40%.

"The test results confirm the Jodari reservoir's world-class quality; and the potential for the field to underpin the LNG development," said Nick Cooper, chief executive of U.K.-listed Ophir Energy PLC. Mr. Cooper was referring to a liquefied natural gas terminal that could be part of gas development in Tanzania.

BG Group is in the process of selecting a site for an onshore LNG terminal. The capacity of the terminal will be determined by further exploration and appraisal results across the company's three offshore blocks. BG estimates the total resource in Tanzania at nearly 10 trillion cubic feet.

Statoil said its latest Tanzania find brings recoverable gas volumes now discovered in the country to between 10 trillion and 13 trillion cubic feet. "[This] brings further robustness to a future decision on a potential LNG project", said Statoil's executive vice president for Exploration, Tim Dodson.

Statoil has a 65% stake in the discoveries, with Exxon Mobil holding the remaining 35%.

Eni and Anadarko have also said they are studying plans to build a LNG plant in Mozambique. Analysts say the region is well-placed to serve growing energy demand in Asian markets.

Kjetil Malkenes Hovland in Oslo contributed to this story.

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ExxonMobil Starts Telok Gas Production

ExxonMobil reported Monday that its Malaysian subsidiary has begun gas production from the Telok field, located offshore Malaysia in the South China Sea.

The Telok A platform marks the first phase of the Telok gas development project. It was developed under a gas production sharing contract between Exxon (the operator), Petronas Carigali (PCSB) and Petronas. ExxonMobil and PCSB each hold a 50-percent interest in the project.

The development of the Telok field has been advanced by these companies in order to meet increasing demand for natural gas in Peninsular Malaysia. It is one of several upstream investments announced under Malaysia's Economic Transformation Programme of 2011 – which will see ExxonMobil and PCSB invest more than $3.2 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for the country.

ExxonMobil Exploration and Production Malaysia President J. Hunter Farris commented in a company statement:

"The Telok project is another successful example of collaboration between ExxonMobil and PCSB in meeting Malaysia’s growing energy needs for the power and industrial sector.

"ExxonMobil is committed to ensuring reliable gas supplies to the nation and to using international best practices to enhance our operations in Malaysia."

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ExxonMobil Starts Telok Gas Production

ExxonMobil reported Monday that its Malaysian subsidiary has begun gas production from the Telok field, located offshore Malaysia in the South China Sea.

The Telok A platform marks the first phase of the Telok gas development project. It was developed under a gas production sharing contract between Exxon (the operator), Petronas Carigali (PCSB) and Petronas. ExxonMobil and PCSB each hold a 50-percent interest in the project.

The development of the Telok field has been advanced by these companies in order to meet increasing demand for natural gas in Peninsular Malaysia. It is one of several upstream investments announced under Malaysia's Economic Transformation Programme of 2011 – which will see ExxonMobil and PCSB invest more than $3.2 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for the country.

ExxonMobil Exploration and Production Malaysia President J. Hunter Farris commented in a company statement:

"The Telok project is another successful example of collaboration between ExxonMobil and PCSB in meeting Malaysia’s growing energy needs for the power and industrial sector.

"ExxonMobil is committed to ensuring reliable gas supplies to the nation and to using international best practices to enhance our operations in Malaysia."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

ExxonMobil Starts Telok Gas Production

ExxonMobil reported Monday that its Malaysian subsidiary has begun gas production from the Telok field, located offshore Malaysia in the South China Sea.

The Telok A platform marks the first phase of the Telok gas development project. It was developed under a gas production sharing contract between Exxon (the operator), Petronas Carigali (PCSB) and Petronas. ExxonMobil and PCSB each hold a 50-percent interest in the project.

The development of the Telok field has been advanced by these companies in order to meet increasing demand for natural gas in Peninsular Malaysia. It is one of several upstream investments announced under Malaysia's Economic Transformation Programme of 2011 – which will see ExxonMobil and PCSB invest more than $3.2 billion in new oil and gas assets to help ensure reliable and sustainable energy supplies for the country.

ExxonMobil Exploration and Production Malaysia President J. Hunter Farris commented in a company statement:

"The Telok project is another successful example of collaboration between ExxonMobil and PCSB in meeting Malaysia’s growing energy needs for the power and industrial sector.

"ExxonMobil is committed to ensuring reliable gas supplies to the nation and to using international best practices to enhance our operations in Malaysia."

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ExxonMobil Adds Reserves, Increases Proven Reserves Modestly

Exxon Mobil Corp. said Tuesday that in 2012 it added in reserves slightly more oil and gas than it produced, with the majority of the new reserves coming from oil-rich assets in North America.

The world's largest publicly-traded oil company said it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural gas business.

Also, Exxon said it added more than 750 million oil equivalent barrels from the oil-rich Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oilfields in the world. About 600 million barrels of oil equivalent came from additions in Alberta and in offshore Canada.

The fact that most of the newfound energy padding the company's reserves comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oilsands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized about its 2010 purchase of XTO Energy Inc., which made it the largest natural gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids--at 51%--up two percentage points. Natural gas, as a percentage of the company's reserves, was down two points at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back in new reserves about 115% of the oil and gas it produced; the company said it's the 19th year in a row that it replaced the totality of its production. Excluding the impact of asset sales, reserve additions last year replaced 124% of output. Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio. Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

Copyright (c) 2012 Dow Jones & Company, Inc.

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ExxonMobil Adds Reserves, Increases Proven Reserves Modestly

Exxon Mobil Corp. said Tuesday that in 2012 it added in reserves slightly more oil and gas than it produced, with the majority of the new reserves coming from oil-rich assets in North America.

The world's largest publicly-traded oil company said it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural gas business.

Also, Exxon said it added more than 750 million oil equivalent barrels from the oil-rich Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oilfields in the world. About 600 million barrels of oil equivalent came from additions in Alberta and in offshore Canada.

The fact that most of the newfound energy padding the company's reserves comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oilsands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized about its 2010 purchase of XTO Energy Inc., which made it the largest natural gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids--at 51%--up two percentage points. Natural gas, as a percentage of the company's reserves, was down two points at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back in new reserves about 115% of the oil and gas it produced; the company said it's the 19th year in a row that it replaced the totality of its production. Excluding the impact of asset sales, reserve additions last year replaced 124% of output. Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio. Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Earnings Rise, Oil Production Declines for ExxonMobil

ExxonMobil recorded higher fourth quarter and full year 2012 earnings, but saw its upstream earnings and oil production decline as it ramped up 2012 capital and exploration expenditures to a record level.

The Irving, Texas-based oil major recorded fourth quarter 2012 earnings of more than $9.9 billion, up 6 percent from the fourth quarter of 2011, and full year 2012 earnings of $44.9 billion, up 9 percent from 2011, and record earnings per share of $9.70.

The company spent a record $39.8 billion on expenditures as it pursues opportunities to find and produce new supplies of oil and natural gas to meet global energy demand.

"Energy is fundamental to economic growth and improved living standards," said Chairman Rex W. Tillerson in a statement Friday. "ExxonMobil's strong financial performance enables continued investment in new energy supplies, which creates jobs and supports economic expansion."

While ExxonMobil's fourth quarter earnings were up, the company's upstream earnings for fourth quarter 2012 were approximately $7.7 billion, down approximately $1.1 billion from fourth quarter 2011. Fourth quarter earnings were impacted by lower liquids realizations partially offset by improved natural gas realizations, production volume and mix and lower gains from asset sales.

U.S. upstream earnings for fourth quarter 2012 rose $420 million from fourth quarter 2011 to $1.6 billion, while non-upstream earnings declined approximately $1.5 billion from the previous year to $6.1 billion.

Fourth quarter downstream earnings were approximately $1.8 billion, up $1.3 billion from the same quarter a year ago, on stronger refining margins. U.S. downstream earnings rose $667 million to $697 million, while non-U.S. downstream earnings rose $676 million to approximately $1.1 billion.

ExxonMobil's full year 2012 earnings included $9.9 billion of divestment and restructuring gains, mainly from restricting of its Japan-based operations, with $6.5 billion. But the company's upstream earnings for 2012 of $29.8 billion were down $4.5 billion from 2011 due to a number of factors, including lower liquids realizations, production volume and mix effects, higher operating expenses, lower asset sale gains, unfavorable tax items and negative foreign exchange effects.

ExxonMobil saw its full year 2012 upstream earnings decline by $4.5 billion from 2011 to approximately $29.9 billion. The company recorded U.S. upstream operation earnings of $3.9 billion, down approximately $1.2 billion from 2011, and earnings outside the U.S. of $25.9 billion, down $3.3 billion.

The company's U.S. and international downstream businesses recorded higher earnings due to stronger refining-driven margins and the $5.3 billion gain associated with ExxonMobil's restructuring in Japan and other divestment gains. Downstream earnings grew approximately $8.7 billion from 2011 to $13.2 billion in 2012, with U.S. downstream earnings of approximately $3.5 billion, up $1.3 billion from 2011, and non-U.S. downstream earnings of $9.6 billion, up $7.4 billion from 2011.

Excluding entitlement volumes, OPEC quota effects and divestments, ExxonMobil's fourth quarter 2012 production declined by 2.1 percent from fourth quarter 2011. Fourth quarter gas production was down 2.8 percent, excluding entitlement volumes and divestments, as field decline was partially offset by higher demand and lower downtime.

The company's 2012 full year oil and gas production was also down by 1.7 percent and 1.9 percent respectively.

Despite lower oil production, ExxonMobil noted that its participated in three major liquids project start-ups in West Africa last year with capacity of 350,000 gross barrels of oil per day.

The company also announced early January that it would move forward with the Hebron oil field development projects offshore eastern Canada. ExxonMobil will spend as estimated $14 billion on the project, which will involve constructing a gravity-based structure to recover more than 700 million barrels of oil.

ExxonMobil also started operations at one of the world's largest ethylene steam crackers, the centerpiece of the company's multi-billion dollar expansion at its Singapore petrochemical complex. The expansion will add 2.6 million tonnes per year of new finished product capacity.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Earnings Rise, Oil Production Declines for ExxonMobil

ExxonMobil recorded higher fourth quarter and full year 2012 earnings, but saw its upstream earnings and oil production decline as it ramped up 2012 capital and exploration expenditures to a record level.

The Irving, Texas-based oil major recorded fourth quarter 2012 earnings of more than $9.9 billion, up 6 percent from the fourth quarter of 2011, and full year 2012 earnings of $44.9 billion, up 9 percent from 2011, and record earnings per share of $9.70.

The company spent a record $39.8 billion on expenditures as it pursues opportunities to find and produce new supplies of oil and natural gas to meet global energy demand.

"Energy is fundamental to economic growth and improved living standards," said Chairman Rex W. Tillerson in a statement Friday. "ExxonMobil's strong financial performance enables continued investment in new energy supplies, which creates jobs and supports economic expansion."

While ExxonMobil's fourth quarter earnings were up, the company's upstream earnings for fourth quarter 2012 were approximately $7.7 billion, down approximately $1.1 billion from fourth quarter 2011. Fourth quarter earnings were impacted by lower liquids realizations partially offset by improved natural gas realizations, production volume and mix and lower gains from asset sales.

U.S. upstream earnings for fourth quarter 2012 rose $420 million from fourth quarter 2011 to $1.6 billion, while non-upstream earnings declined approximately $1.5 billion from the previous year to $6.1 billion.

Fourth quarter downstream earnings were approximately $1.8 billion, up $1.3 billion from the same quarter a year ago, on stronger refining margins. U.S. downstream earnings rose $667 million to $697 million, while non-U.S. downstream earnings rose $676 million to approximately $1.1 billion.

ExxonMobil's full year 2012 earnings included $9.9 billion of divestment and restructuring gains, mainly from restricting of its Japan-based operations, with $6.5 billion. But the company's upstream earnings for 2012 of $29.8 billion were down $4.5 billion from 2011 due to a number of factors, including lower liquids realizations, production volume and mix effects, higher operating expenses, lower asset sale gains, unfavorable tax items and negative foreign exchange effects.

ExxonMobil saw its full year 2012 upstream earnings decline by $4.5 billion from 2011 to approximately $29.9 billion. The company recorded U.S. upstream operation earnings of $3.9 billion, down approximately $1.2 billion from 2011, and earnings outside the U.S. of $25.9 billion, down $3.3 billion.

The company's U.S. and international downstream businesses recorded higher earnings due to stronger refining-driven margins and the $5.3 billion gain associated with ExxonMobil's restructuring in Japan and other divestment gains. Downstream earnings grew approximately $8.7 billion from 2011 to $13.2 billion in 2012, with U.S. downstream earnings of approximately $3.5 billion, up $1.3 billion from 2011, and non-U.S. downstream earnings of $9.6 billion, up $7.4 billion from 2011.

Excluding entitlement volumes, OPEC quota effects and divestments, ExxonMobil's fourth quarter 2012 production declined by 2.1 percent from fourth quarter 2011. Fourth quarter gas production was down 2.8 percent, excluding entitlement volumes and divestments, as field decline was partially offset by higher demand and lower downtime.

The company's 2012 full year oil and gas production was also down by 1.7 percent and 1.9 percent respectively.

Despite lower oil production, ExxonMobil noted that its participated in three major liquids project start-ups in West Africa last year with capacity of 350,000 gross barrels of oil per day.

The company also announced early January that it would move forward with the Hebron oil field development projects offshore eastern Canada. ExxonMobil will spend as estimated $14 billion on the project, which will involve constructing a gravity-based structure to recover more than 700 million barrels of oil.

ExxonMobil also started operations at one of the world's largest ethylene steam crackers, the centerpiece of the company's multi-billion dollar expansion at its Singapore petrochemical complex. The expansion will add 2.6 million tonnes per year of new finished product capacity.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Earnings Rise, Oil Production Declines for ExxonMobil

ExxonMobil recorded higher fourth quarter and full year 2012 earnings, but saw its upstream earnings and oil production decline as it ramped up 2012 capital and exploration expenditures to a record level.

The Irving, Texas-based oil major recorded fourth quarter 2012 earnings of more than $9.9 billion, up 6 percent from the fourth quarter of 2011, and full year 2012 earnings of $44.9 billion, up 9 percent from 2011, and record earnings per share of $9.70.

The company spent a record $39.8 billion on expenditures as it pursues opportunities to find and produce new supplies of oil and natural gas to meet global energy demand.

"Energy is fundamental to economic growth and improved living standards," said Chairman Rex W. Tillerson in a statement Friday. "ExxonMobil's strong financial performance enables continued investment in new energy supplies, which creates jobs and supports economic expansion."

While ExxonMobil's fourth quarter earnings were up, the company's upstream earnings for fourth quarter 2012 were approximately $7.7 billion, down approximately $1.1 billion from fourth quarter 2011. Fourth quarter earnings were impacted by lower liquids realizations partially offset by improved natural gas realizations, production volume and mix and lower gains from asset sales.

U.S. upstream earnings for fourth quarter 2012 rose $420 million from fourth quarter 2011 to $1.6 billion, while non-upstream earnings declined approximately $1.5 billion from the previous year to $6.1 billion.

Fourth quarter downstream earnings were approximately $1.8 billion, up $1.3 billion from the same quarter a year ago, on stronger refining margins. U.S. downstream earnings rose $667 million to $697 million, while non-U.S. downstream earnings rose $676 million to approximately $1.1 billion.

ExxonMobil's full year 2012 earnings included $9.9 billion of divestment and restructuring gains, mainly from restricting of its Japan-based operations, with $6.5 billion. But the company's upstream earnings for 2012 of $29.8 billion were down $4.5 billion from 2011 due to a number of factors, including lower liquids realizations, production volume and mix effects, higher operating expenses, lower asset sale gains, unfavorable tax items and negative foreign exchange effects.

ExxonMobil saw its full year 2012 upstream earnings decline by $4.5 billion from 2011 to approximately $29.9 billion. The company recorded U.S. upstream operation earnings of $3.9 billion, down approximately $1.2 billion from 2011, and earnings outside the U.S. of $25.9 billion, down $3.3 billion.

The company's U.S. and international downstream businesses recorded higher earnings due to stronger refining-driven margins and the $5.3 billion gain associated with ExxonMobil's restructuring in Japan and other divestment gains. Downstream earnings grew approximately $8.7 billion from 2011 to $13.2 billion in 2012, with U.S. downstream earnings of approximately $3.5 billion, up $1.3 billion from 2011, and non-U.S. downstream earnings of $9.6 billion, up $7.4 billion from 2011.

Excluding entitlement volumes, OPEC quota effects and divestments, ExxonMobil's fourth quarter 2012 production declined by 2.1 percent from fourth quarter 2011. Fourth quarter gas production was down 2.8 percent, excluding entitlement volumes and divestments, as field decline was partially offset by higher demand and lower downtime.

The company's 2012 full year oil and gas production was also down by 1.7 percent and 1.9 percent respectively.

Despite lower oil production, ExxonMobil noted that its participated in three major liquids project start-ups in West Africa last year with capacity of 350,000 gross barrels of oil per day.

The company also announced early January that it would move forward with the Hebron oil field development projects offshore eastern Canada. ExxonMobil will spend as estimated $14 billion on the project, which will involve constructing a gravity-based structure to recover more than 700 million barrels of oil.

ExxonMobil also started operations at one of the world's largest ethylene steam crackers, the centerpiece of the company's multi-billion dollar expansion at its Singapore petrochemical complex. The expansion will add 2.6 million tonnes per year of new finished product capacity.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here