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Regional Overview (continued)Europe
ExxonMobil has exploration and production operations in Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, and the United Kingdom. Key assets include extensive North Sea oil and natural gas production operations and significant onshore natural gas production and distribution systems. Europe accounted for 33 percent of the company's 1999 net oil and gas production. EXPLORATION HIGHLIGHTS Even though Europe is considered a mature region from an exploration standpoint, ExxonMobil added new field resources totaling over 300 million oil-equivalent barrels in 1999. These additions were high-value oil and gas discoveries close to existing infrastructure. UNITED KINGDOM AND NORWAY DEVELOPMENTS ExxonMobil has an interest in more than 90 producing fields in the United Kingdom and Norway sectors of the North Sea, which accounted for 22 percent of ExxonMobil's 1999 net oil and gas volumes. Production is expected to increase from optimized recovery in existing fields, new field developments, and the expansion of gas markets for natural gas sales. Brent redevelopment is now complete with gas sales expected to peak at 800 million cubic feet per day (ExxonMobil interest 50 percent) in 2002. ExxonMobil projects that came onstream in 1999 and seven other development projects underway will add over 280 thousand oil-equivalent barrels per day of net peak production, more than offsetting declines in mature fields. Several of these major projects are highlighted below: Balder and Ringhorne Developments (Norway)
The Balder field came onstream in the third quarter of 1999 with higher initial production rates than originally expected. The project is expected to recover 180 million barrels of oil via subsea wells tied back to an FPSO. A plan for development and operation of Ringhorne, encompassing multiple reserve accumulations in the area totaling 280 million barrels, has been submitted to the Norwegian government. A license extension that will allow production through the year 2030 has been granted. The Ringhorne development will be produced through the Balder facility, fully utilizing the capacity for many years. Jotun Development (Norway)
The Jotun development came onstream in the fourth quarter of 1999 with higher initial production rates than expected. The project is forecast to recover 200 million barrels using a wellhead platform producing to a new-build FPSO. Aasgard B/C Development (Norway)
The Aasgard development consists of three components — A, B, and C. Aasgard A is currently producing through an FPSO vessel. Aasgard B will be the main gas processing center for the development and will be located on a semi-submersible vessel. Aasgard C will be a floating storage facility for liquids. Aasgard B and C are planned to start-up in fourth quarter 2000. The project will develop reserves of about 2.7 billion oil-equivalent barrels (gross). Shearwater Development (U.K.)
The Shearwater project is expected to develop reserves of more than 225 million oil-equivalent barrels from high-pressure, high-temperature reservoirs. The development will share processing facilities with the nearby Elgin and Franklin fields. Drilling is complete; construction is near completion. Triton Development (U.K.)
The Bittern and Guillemot West fields in the Central U.K. North Sea are being jointly developed as the Triton project using a common production system. The project is expected to recover 170 million oil-equivalent barrels. Construction is complete. OTHER EUROPEAN DEVELOPMENTS In addition to the North Sea developments mentioned above, ExxonMobil has significant gas holdings in the rest of Europe. Capacity development is being optimized to meet market demand and peak day needs. A multi-year upgrade of Groningen compression is now underway in the Netherlands. ExxonMobil has a 20-percent interest in the first German North Sea platform. EUROPEAN NATURAL GAS — SUBSTANTIAL EXISTING BUSINESS ExxonMobil sold over 7.4 billion cubic feet per day of gas to the European market in 1999, with most of these sales underpinned by long-term contracts. The company sells gas directly by pipeline and via ownership interests in a number of gas distribution companies. In the United Kingdom, the company's gas sales reached record levels in 1999 with the start-up of several new fields. 
ExxonMobil's substantial gas sales position in Europe is supported by an extensive marketing infrastructure, and ownership in 19 thousand miles of gas pipelines, 210 billion cubic feet of natural gas storage capacity, and five gas processing plants. Implementation of the European Union Gas Directive is underway. ExxonMobil's broad range of gas production, treating, transmission, storage, and marketing assets in the region provide a sound foundation to compete in this changing environment. The Europipe II pipeline (ExxonMobil interest 9 percent) started up with capacity to transport 2.0 billion cubic feet of gas per day from Norway to continental Europe, supporting continued growth in ExxonMobil's substantial pipeline gas sales to the European market. Development and marketing studies have been initiated for the large Norwegian gas resources at Ormen Lange, estimated at 14 trillion cubic feet, with both the United Kingdom and continental Europe as potential markets. Additionally, sales of LNG from ExxonMobil's resources in Qatar are being pursued in Italy.
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