Mobil Cepu Ltd. commences Banyu Urip Full Field Development

Bojonegoro, 6 December 2011 – Mobil Cepu Ltd. (MCL), a subsidiary of Exxon Mobil Corporation, held a groundbreaking ceremony today for the Banyu Urip project in Bojonegoro, Indonesia. Jero Wacik, Indonesian Minister of Energy and Natural Resources, inaugurated the event.

The ceremony marked the commencement of work for the full field development of the Banyu Urip project. It also highlighted MCL’s award of five major engineering, procurement and construction contracts to five consortium companies. The scope of the contracts includes the project’s central production processing facilities; 72-kilometer, 20-inch diameter onshore pipeline; 23-kilometer offshore pipeline and mooring tower; 1.7 million barrel floating storage and offloading (FSO) unit; and onshore infrastructure facilities.

Terry S. McPhail, President of Mobil Cepu Ltd., said, “We are working closely with BPMIGAS, PT. Pertamina EP Cepu, and Cepu Block Cooperation Body to bring the Banyu Urip resources into full production as soon as possible, while ensuring safe and reliable operations.”

The Banyu Urip field is estimated to contain more than 450 million barrels of oil and is targeted to produce 165,000 barrels of oil per day. The project will produce the oil from 49 wells on three well pads, process the oil onshore, and transfer it offshore to the FSO, where tankers will load the crude oil for transport to domestic and world markets.

The development and future production of Banyu Urip will generate significant benefits for Indonesia. The construction and installation of the facilities will be accomplished with the support of national suppliers, including a number of local companies. A significant number of Indonesians will be employed by MCL and its contractors during the approximately three-year development phase of the project. The project will also provide training opportunities for Indonesians to enhance skills and knowledge for future employment in oil and gas, services and other industries. Training is currently underway for local technicians who will be responsible for the production operations.

The Banyu Urip co-ventures initiated production in late 2008 and commissioned an early production facility in August 2009. The facility has demonstrated capacity of 20,000 barrels per day with high reliability.

MCL is the operator of the Cepu Block. MCL, and Ampolex (Cepu) PTE Ltd., both subsidiaries of Exxon Mobil Corporation, hold 45 percent interest in the block with PT. Pertamina EP Cepu holding 45 percent interest and the Cepu Block Cooperation Body (BKS) holding 10 percent interest.