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Regional Overview (continued)Africa
NIGERIA ExxonMobil has a 40-percent interest in a joint venture with the Nigerian National Petroleum Corporation, for which it operates five leases covering about 800 thousand acres in shallow water offshore southeastern Nigeria. Net crude and condensate production in 1999 was the largest of any company in the country. Importantly, ExxonMobil's cost structure is among the lowest in Nigeria. The Oso natural gas liquids project (ExxonMobil interest 51 percent), which began production in 1998, transports liquids via a 42-mile, 10-inch pipeline to the Bonny River Terminal where they are fractionated into propane, butane, and pentanes for export. Current production from the joint-venture acreage will be sustained by infill drilling and pressure maintenance projects. Further production growth will come from continued development of the Usari field, satellite field development opportunities, and planned development of the Yoho field. Bonga Development
ExxonMobil continues to evaluate six deepwater blocks (3.3 million acres) under production sharing agreements. Four exploration wells were drilled on these blocks in 1999 including the Erha discovery on ExxonMobil-operated Block 209. Development planning activities are underway on this world-class discovery. In addition, engineering activities are underway for the initial development of the Bonga discovery on Block 212. The company continues to progress development of its significant share of Nigeria's extensive gas resources. Potential uses include power generation, NGL recovery, chemical plant feed, and gas-to-liquids.
ANGOLA ExxonMobil currently has interests in 11 deepwater blocks in Angola totaling about 13 million gross acres. The company and its co-venturers have announced 14 discoveries in Angola that represent world-class development opportunities with recoverable resource potential in excess of 5 billion oil-equivalent barrels. On ExxonMobil-operated Block 15 (ExxonMobil interest 40 percent), development planning for the Kizomba project is well underway and two additional discoveries, Chocalho and Xikomba, were announced in 1999. Prior-year discoveries on Block 15 include Hungo, Kissanje, Marimba, and Dikanza. On Block 17 (ExxonMobil interest 20 percent), Girassol development is underway and development planning has started for Dalia and additional discoveries. Three new discoveries — Orquidea, Tulipa, and Camelia — were drilled in 1999. Prior-year discoveries on Block 17 include Girassol, Dalia, Rosa, Lirio, and Cravo. Production sharing agreements were signed on four new deepwater Angola blocks in 1999, each covering about 1 million acres. ExxonMobil will operate Block 33 (ExxonMobil interest 45 percent), and holds interests in Block 25 (ExxonMobil interest 35 percent), Block 31 (ExxonMobil interest 25 percent), and Block 32 (ExxonMobil interest 15 percent). Girassol Development
Girassol will consist of an FPSO and subsea templates located in 4,500 feet of water. The FPSO hull is complete. Topsides, subsea and flowline/riser fabrication are underway. Development drilling is scheduled to begin in 2000 and first production is anticipated in 2001. Kizomba Development (Block 15 Phase 1)
EQUATORIAL GUINEA ExxonMobil is the largest producer in Equatorial Guinea, operating two blocks covering about 1.2 million acres offshore the island of Bioko. In 1999, production from the Zafiro field (shown on map on page 40) increased almost 20 percent over 1998 due to added water injection and gas lift systems. In addition, a single point mooring buoy for offloading was completed which improved operating efficiency. Satellite reservoirs in the eastern portion of the Zafiro field will be developed through extended-reach drilling from the new Jade platform, which was installed in December 1999. Block C (ExxonMobil interest 45 percent) was acquired in 1999 and exploration is still in the early stage. Near-term plans include interpretation of three-dimensional seismic, with drilling possible in late 2000 or 2001. Jade Development
Jade is an ExxonMobil-operated conventional steel jacket development in 550 feet of water. Production will be stored in the Zafiro FPSO/FSO complex and offloaded through a local single point mooring buoy. Hook-up and commissioning are underway with drilling to follow. Production start-up is anticipated during second quarter of 2000. EGYPT In late 1999, ExxonMobil completed an agreement with Shell to acquire a 25-percent interest in a 10-million-acre block in the deepwater Nile Delta area. Seismic operations will continue during 2000, with drilling anticipated in 2001. CHAD ExxonMobil is operator for over 10 million acres in the Doba, Doseo, and Lake Chad basins. During 1999, engineering design continued for the three-field Doba Basin oil development, which would access about 1 billion barrels of recoverable oil. The project (ExxonMobil interest 40 percent) consists of a 300-well development and a 650-mile pipeline from the oil fields in southern Chad through Cameroon to the Atlantic coast at Kribi. A development decision is expected this year. ExxonMobil, working with the government of Chad, is reconstituting the Chad consortium to allow development to proceed with World Bank involvement.
OTHER AFRICA INTERESTS Algeria – ExxonMobil will drill two appraisal wells on the Touggourt License in 2000. These wells, in conjunction with an existing three-dimensional seismic survey, will help delineate a discovery and provide additional information needed to determine commerciality. Cameroon – ExxonMobil, through its Cameroon affiliate, has varying working interests in three blocks: Moudi, Ebome, and Ebodje, offshore Cameroon. Production is projected to grow in 2000 with the planned development of Tiko, a satellite field. Niger – ExxonMobil is operator of the 7-million acre Agadem permit (ExxonMobil interest 100 percent) in eastern Niger. To date, discoveries amount to nearly 350 million barrels of recoverable oil. However, commercial thresholds are very high for this landlocked nation, and ExxonMobil has been seeking co-venturers to progress the exploration effort. Republic of Congo – ExxonMobil holds interests in four deepwater blocks covering about 4 million gross acres. A four-well drilling program on these blocks will take place in 2000. Sao Tome and Principe – ExxonMobil has an exclusive seismic option on 22 deepwater blocks covering 15 million acres in the Democratic Republic of Sao Tome and Principe (shown on map on page 40). A decision will be made in 2000 on whether to enter into a production sharing contract (PSC) on some of these blocks. |
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