ExxonMobil Confirms Approval of Kashagan Development Plan

February 25, 2004 at 9:23 AM EST

IRVING, Texas--(BUSINESS WIRE)--Feb. 25, 2004--Exxon Mobil Corporation (NYSE:XOM) is pleased to confirm that Kazmunaygaz (KMG), the petroleum authority for the Republic of Kazakhstan, and the Consortium companies of the North Caspian Production Sharing Agreement, ExxonMobil Kazakhstan Inc.(16.67 percent), Agip Caspian Sea B.V (16.67 percent), British Gas (16.67 percent), Shell Kazakhstan Development BV (16.67 percent), Total (16.67 percent), ConocoPhillips (8.33 percent) and Inpex (8.33 percent) have announced approval of the development plan for the world-class Kashagan oil field.

Production startup of the Kashagan field is expected in 2008 with an initial output of 75,000 barrels of oil per day, ramping up to 450,000 barrels of oil per day. Further development phases will raise the full field production to its plateau level currently estimated at 1.2 million barrels of oil per day. The capital investment for full field development is currently estimated at about $30 billion, with projected ultimate production of up to 13 billion barrels of oil.

"The approval of the Kashagan development plan by KMG and the consortium companies is a significant milestone that allows all parties to cooperatively move this project forward," said Rex Tillerson, senior vice president of Exxon Mobil Corporation.

Approval of the plan was critical, given the size of the partners' investment to develop the giant Kashagan oil field, one of the largest discoveries in the past 30 years. The plan addresses the field's relative remoteness, lack of established infrastructure and unique technical challenges.

This huge endeavor will positively impact Kazakhstan nationally and locally through tax and royalty revenues, both direct and indirect employment and contractor opportunities for Kazakh companies and individuals, local infrastructure development and community assistance programs.

ExxonMobil subsidiaries' interests in Kazakhstan also include a 25 percent interest in the giant Tengiz oil field, 7.5 percent interest in the Caspian Pipeline Consortium (CPC) pipeline, fuels marketing in Almaty and automotive and industrial lubricants through a nationwide distribution network.

CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including resource recoveries, production rates, and project plans, costs and schedules, could differ materially due to changes in market conditions affecting the oil and gas industry, political developments, technical or operating factors, and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com). References to barrels of oil include amounts that are not yet classified as proved reserves but that we believe will be produced in the future.


    CONTACT: ExxonMobil
             Bob Davis, 713-656-4376

    SOURCE: Exxon Mobil Corporation
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