ExxonMobil Announces Hebron Oil Project to Proceed off Canada’s East Coast

  ExxonMobil Announces Hebron Oil Project to Proceed off Canada’s East Coast

  *Development of field offshore Newfoundland and Labrador to produce more
    than 700 million barrels of oil, an increase versus earlier estimates
  *Gravity-based platform designed for daily oil production of 150,000
    barrels
  *First oil anticipated in 2017

Business Wire

IRVING, Texas -- January 4, 2013

Exxon Mobil Corporation (NYSE:XOM) announced today it will develop the Hebron
oil field offshore the Canadian province of Newfoundland and Labrador using a
gravity-based structure that will recover more than 700 million barrels of
oil, an increase versus earlier estimates.

Capital cost for the project, which is expected to begin oil production around
the end of 2017, is estimated at $14 billion. The platform is being designed
for daily production of 150,000 barrels of oil.

“Hebron is one of several large-scale oil developments that ExxonMobil will
bring on stream in the next five years,” said Neil W. Duffin, president of
ExxonMobil Development Company. “ExxonMobil will employ its expertise in
Arctic development and project execution to develop this world-class resource
in challenging operating conditions.”

Hebron’s development will provide significant benefits to the province,
including employment for up to 3,500 people during construction in the
province, and royalties and taxes to fund provincial infrastructure, social
programs and services.

The project received regulatory approval from the governments of Canada and
Newfoundland and Labrador in May.

Hebron will be developed using a stand-alone gravity-based structure
consisting of reinforced concrete designed to withstand sea ice, icebergs and
meteorological and oceanographic conditions. The base will be designed to
store approximately 1.2 million barrels of crude oil and will support an
integrated topsides deck that includes a living quarters and facilities to
perform drilling and production.

Front-end engineering and design was completed last year and significant
progress has been achieved on detailed engineering. Current cost estimates
reflect advanced project definition and current market and foreign exchange
rates.

Construction of the gravity-based structure is under way at the project’s
primary construction site in Bull Arm, Newfoundland and Labrador. Topsides
fabrication is expected to begin later this year.

Hebron will be operated by ExxonMobil affiliate, ExxonMobil Canada Properties,
which holds 36 percent equity in the project. Hebron co-venturers are Chevron
Canada Limited (26.7%), Suncor Energy Inc. (22.7%), Statoil Canada (9.7%) and
Nalcor Energy Oil and Gas (4.9%).

The Hebron field is located offshore Newfoundland and Labrador in the Jeanne
d'Arc Basin more than 200 miles (350 kilometers) southeast of the capital of
St. John's and about 19 miles (32 kilometers) southeast of ExxonMobil’s
Hibernia project. Water depth is approximately 300 feet (92 meters).

CAUTIONARY NOTE:

Statements that reference future events or conditions in this press release
are forward-looking statements. Actual future results, including project
plans, costs, and schedules, production rates, and resource recoveries may
differ significantly from the forecasts, depending on changes in oil or gas
prices and other market or economic factors that affect the petroleum
industry; the outcome of development programs; reservoir performance;
unexpected technical difficulties or other technical or operating factors; the
actions of governmental authorities or regulatory agencies; and other factors
listed under the heading “Factors Affecting Future Results” on the Investor
page at the ExxonMobil website at www.exxonmobil.com and in Item 1A of
ExxonMobil’s most recent Form 10-K. References to barrels of oil and other
quantities of oil or gas in this release include volumes that are not yet
classified as proved reserves under SEC definitions, but that we believe will
ultimately be produced.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas company,
uses technology and innovation to help meet the world’s growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the largest
refiner and marketer of petroleum products, and its chemical company is one of
the largest in the world. Follow ExxonMobil on Twitter at
www.twitter.com/exxonmobil.

Contact:

ExxonMobil
Media Relations, 972-444–1107
 
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