ExxonMobil to participate in Upper Zakum field

ExxonMobil and its subsidiaries have signed agreements with Abu Dhabi National Oil Company (Adnoc) for a piece of the Upper Zakum oil field.

Offshore staff

(Abu Dhabi)-ExxonMobil and its subsidiaries have signed agreements with Abu Dhabi National Oil Company (Adnoc) for a piece of the Upper Zakum oil field. Under the deal, ExxonMobil Abu Dhabi Offshore Petroleum Company Ltd. (EMAD) will receive a 28% undivided interest out of Adnoc's 88% interest in the field.

The deal leaves Adnoc with a 60% stake in the field, with Japan Oil Development Company Ltd. (Jodco) holding the remaining 12%.

The Upper Zakum oil field is one of the world's largest, a significant contributor to Abu Dhabi's current production and one that is expected to have substantial growth potential. ExxonMobil, Adnoc and Jodco will jointly provide support to the operating company, Zakum Development Company (Zadco), in pursuing the objective of increasing production to 750,000 b/d, representing a 50% increase from current levels.

ExxonMobil will provide this support by developing technologies that will maximize recovery from Upper Zakum reservoirs. The company plans to establish a technology center in Abu Dhabi that will supply technology in the areas of reservoir management, well management, and production operations. Additional support for training and personnel development will come from ExxonMobil's Upstream Training and Technology Center in Houston.

ExxonMobil has also agreed to help establish a research and development facility at the Petroleum Institute, the leading technical university in AbuDhabi.

ExxonMobil was chosen from a field of six competing companies, based mainly on demonstration of its technical capabilities. The company has been active in Abu Dhabi petroleum production for more than 65 years, and it sees this development as further proof of its commitment to the region.

"ExxonMobil is deeply honored to have this opportunity to participate in the Upper Zakum field," said Rex Tillerson, chairman and CEO of ExxonMobil Corp. "We look forward to cooperating closely with Adnoc in the areas of training and development of human resources."

3/28/2006

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