ExxonMobil to embark on 10 new projects in 2014


ExxonMobil to embark on 10 new projects in 2014


ExxonMobil expects to pursue more projects in the near future in such countries as Australia, Indonesia, Canada, Nigeria and the United States. All of these projects are estimated to add about 1 million net oil equivalent barrels per day by 2017.


According to the company, with the new acquisitions its production would rise 2 percent this year and 4 percent a year from 2015 through 2017. 


The ExxonMobil’s production performance reflects the crucial choices that have been made to improve unit profitability while maintaining disciplined capital allocation.


Rex W. Tillerson, chairman and chief executive officer, said: “We have financial flexibility to pursue potential strategic opportunities and maintain a disciplined and selective approach to capital that ensures any new investment will contribute to robust cash flow growth.”


Among the major projects scheduled to start this year are a liquefied natural gas project in Papua New Guinea and the largest offshore oil and gas platform in Russia. ExxonMobil also plans to embark on a heavy oil expansion project in Canada and deep-water projects in the Gulf of Mexico.


“These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes,” Tillerson said at the company’s annual investment analyst meeting at the New York Stock Exchange.


“We are adding new volumes that improve our profitability mix with higher liquids and liquids linked natural gas volumes. We’re also driving increased unit profitability through better fiscal terms and reducing low-margin barrel production.”


Currently, the company manages more than 120 high-quality projects aiming to produce about 24 billion oil equivalent barrels of oil and natural gas.


Its Downstream and Chemical businesses are working on strengthening the portfolio and thus improving their financial performance across the company’s business cycle.


ExxonMobil’s investments in North America will expand its logistics services to transport crude oil and finished products.


“In the Downstream and Chemical segments, we are diversifying feedstocks through our flexible and integrated system, continuously pursuing operating efficiencies and maximizing sales of higher-margin lubes, diesel and chemical products,” commented Tillerson.


For the past 20 years, ExxonMobil’s output figures exceeded the 100 per cent of expected production. At the end of 2013, proved reserves totaled 25.2 billion oil equivalent barrels, consisting of 53 percent liquids and 47 percent natural gas.


Photo: Oilonline




Wall Street Journal