EuropeEurope GasGas MarketingMarketing ChangeChange andand OpportunityOpportunity R.R. A.A. LuxbacherLuxbacher DirectorDirector –– Europe Europe GasGas && PowerPower MarketingMarketing ExxonMobilExxonMobil InternationalInternational LimitedLimited
1 Cautionary Statement
Forward-Looking Statements. Outlooks, projections, estimates, targets, and business plans in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including demand growth and mix; ExxonMobil’s own production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; revenue enhancements and cost efficiencies; industry margins; margin enhancements and integration benefits; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investor Information section of our website at www.exxonmobil.com .See also Item 1A of ExxonMobil’s 2005 Form 10-K. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date.
Frequently Used Terms. References to resources, resource base, recoverable resources, and similar terms include quantities of oil and gas that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. The discussion of reserves in this presentation generally excludes the effects of year-end price/cost revisions and includes reserves attributable to equity companies and our Syncrude operations. For definitions of, and information regarding, reserves, return on average capital employed, normalized earnings, cash flow from operations and asset sales, and other terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms" and the quarterly earnings press releases posted on the Investor Information section of our website. The Financial and Operating Review on our website also shows ExxonMobil's net interest in specific projects.
2 ExxonMobil Upstream in Europe
2005 Production*
Oil-Equivalent Barrels (1000s / day) • Over 100 years in Europe
Natural Gas 1400 Liquids • Largest producer amongst international oil companies 1200
1000 • $6.9 B earnings in 2005 – 19% of ExxonMobil’s total 800
600 • Over $9 B invested 2001 - 2005
400
200
0 XOM RDS BP
*per 2005 annual reports 3 ExxonMobil Europe Gas Marketing
Production & Sales
Sales LNG Terminal • 6 BCFD gas sales Gas Marketing Office ~ 12% Western Europe market ~ 55% ExxonMobil world-wide
• Gas infrastructure ownership ~ 8,000 miles of pipelines ~ 300 BCF storage volume – 12 gas processing plants – 2 LNG terminals under construction
4 Gas Outpaces Total Energy Growth
Total Energy MBDOE 400
300 1.6%1.6%
OtherOther 1.8%1.8% 200
CoalCoal 1.8%1.8%
100 GasGas
OilOil 1.4%1.4%
0 80 90 00 10 20 30
5 Gas Demand Grows by 50% through 2030
Total Energy Gas MBDOE BCFD 400 500
400 300 150
300
200
200 1.8%1.8%
100 GasGas 100
0 0 80 90 00 10 20 30 80 90 00 10 20 30
6 Power Generation Drives Gas Growth
Total Energy Gas By Sector MBDOE BCFD BCFD 400 500 160 1.8%
400 300 150 2.1%2.1% 300 PowerPower 200 GenerationGeneration
200 1.8%1.8% 1.6%1.6% Gas 100 Gas IndustrialIndustrial 100
1.6%1.6% Res/CommRes/Comm 0 0 0 80 90 00 10 20 30 80 90 00 10 20 30 05 10 15 20 25 30
7 Growing Requirement for New Supplies
Global Gas Supply
BCFD
500500
400400 New Supplies 90 60 Required
ports 300300 g Im stin Exi
200200
Regional Production 100100
00 199090 200000 201010 2020 20 203030
8 Europe Requires Half of New Supplies
Global Gas Supply New Supplies Required
BCFD BCFD 140140 500500
120120
400400 90 60 100100 rts mpo 300300 ng I 8080 isti 25 Ex Asia 6060 200200 45 4040 Regional Europe Production 100100 2020 US / Canada 20 00 00 199090 200000 201010 2020 20 203030 200005 200510 2010 15 201520 2020 25 2025 2030 30
9 LNG Growth Links Markets Globally
BCFD 80 LNG Supply
60
40
20 LNG Movements 2030 0 2005 2015 2030 10 European Gas Market Development 19601980 1985 1998 2000 2005 Country UK Market Continental Centred Liberalisation Liberalisation Starts
None Liquidity Full
Building Markets British Gas privatised EU Gas Directives Vertical Integration Liquidity Developing Pipeline Regulation Long Term Contracts UK – Belgium Pipeline Uneven Pace
11 ExxonMobil Europe Gas Business Model … Equity Gas Focused
• Sell all available equity production at highest net price
• Actively manage gas pipeline, plant, terminal and storage assets – Invest when attractive to support equity sales – Integrate with Production, Chemical and Refining assets – Restructure / divest if attractive when ExxonMobil no longer needs to own
• Use capability and knowledge to bring new equity gas to market Competitive Advantages Market Flawless Clear, Long-term Integration Knowledge Execution Focus
12 Maximise Gas Value … via Centralised ExxonMobil Marketing ExxonMobil NW Europe Sales Entities • In 2000, four wholly owned, five joint arrangements selling ExxonMobil gas
NO – Appropriate for country centred market development – Differing shareholder approaches in joint arrangements ian ed M e Lin • As market liberalised, recognised early the value of: DE NL – Broader view of market
UK – Integrating gas sales operations
2000 ExxonMobil Sales Joint Arrangements 13 Maximise Gas Value … via Centralised ExxonMobil Marketing ExxonMobil NW Europe Sales Entities • Created single 100% ExxonMobil entity – Terminated 4 joint arrangements NO – Centralised sales operations – First mover
ExxonMobil • Increased opportunity identification Gas Marketing and capture Europe – Rapidly move gas across borders to achieve highest value
NL – New sales options
UK – Increased equity gas sales DE – More effective government engagement 2006 Joint Arrangements 14 Restructure / Divest
… When Asset Ownership No Longer Needed
Transactions $B Earnings • In liberalising market, equity gas sales may no longer require ownership in 2000 2 0.4 pipeline and storage assets 2001 - -
• Early mover advantage to maximise value 2002 1 0.1
• 9 major UK, Netherlands, and German 2003 3 1.8 mid-stream gas assets restructured or divested 2000-2005 2004 2 0.1
2005 1 1.6 • ~$4 B earnings
15 Maximise Asset Value
… via Integration Across Value Chain
Gas Raw Gas Treating & Producing Processing Sales Gas Field Plant
Natural Gas Liquids
Production NGL Ethane Ethylene Ethylene Polyethylene Fractionation Production Production to Plastics Plant Plant Plant
Other Natural To Plastics Gas Liquids Plant
ExxonMobil assets throughout value chain
16 Maximise Asset Value
… via Integration Across Value Chain
BrentBrent PlatformPlatform Brent Production BRENT
S e G in A l L e F ip P St. Fergus Processing Plant
St.St. FergusFergus GasGas PlantPlant Brent Field Production
Pipeline and plant assets commercialising UK North Sea gas
17 Maximise Asset Value … via Integration Across Value Chain Brent Production BRENT
S e G in A l L e Brent Platform F ip P St. Fergus Processing Plant
St. Fergus Gas Plant Brent Field Production MossmorranMossmorran FractionationFractionation andand FifeFife EthyleneEthylene PlantsPlants
Mossmorran / Fife
MeerhoutMeerhout Meerhout PolyethylenePolyethylene PlantPlant Ethane to Polyethylene
Providing ethane feedstock to profitable polyethylene production
18 Maximise Asset Value … via Integration Across Value Chain
Brent Production BRENT
S e G in A l L e Brent Platform F ip P Mossmorran Norwegian St. Fergus Gas ProductionFractionation and Fife Ethylene Plants Processing Plant (Illustrative) Statfjord MossmorranField / Fife
St. Fergus Gas Plant Brent Field Production Meerhout Meerhout Polyethylene Plant Ethane to Polyethylene Volume
Late Life Project Brent Time Statfjord
Statfjord Field Late Life Extension Project
Opportunity to move new Statfjord gas to UK infrastructure
19 Maximise Asset Value … via Integration Across Value Chain Brent Production BRENT
S e G in A l L e Brent Platform F ip Norwegian P Mossmorran Gas Production (Illustrative) Statfjord St. Fergus Fractionation and Field Processing Plant Fife Ethylene Plants
Mossmorran / Fife
St. Fergus Gas Plant Volume Volume Volume Brent Field Production Meerhout Meerhout Late Polyethylene Plant Life Project Brent
Ethane to Polyethylene Time Statfjord
Statfjord Field Late Life Extension Project
Statfjord Brent
Engagement / Consensus Building
Built consensus with Norway, UK and partners on UK option
20 Maximise Asset Value … via Integration Across Value Chain Brent Production BRENT
S e G in A l L e Brent Platform F ip Norwegian P Mossmorran Gas Production Statfjord Fractionation and (Illustrative) St. Fergus Field Processing Plant Fife Ethylene Plants
Mossmorran / Fife
St. Fergus Gas Plant Volume Volume Volume Brent Field Production Meerhout Meerhout Polyethylene Plant Late Life Project Brent Ethane to Polyethylene Time Statfjord
Statfjord Field Late Life Extension Project Statfjord to UK Attractive Tariffs General Interest Value Capture
Statfjord Brent Increased Utilisation Competitive Feedstock Feedstock Engagement / Consensus Building
21 Bring Gas to Market … LNG To Europe
LNG Value Chain
Gas to Gas LNG LNG Pipeline
Gas Gas Treating & Marketing & LNG Production Liquefaction Shipping Regasification
22 Bring Gas to Market … LNG To Europe
900 TCF
Qatar LNG Joint Ventures
ExxonMobil well-established in Qatar
23 Bring Gas to Market … LNG To Europe
900 TCF Gas Supply / Demand BCFD
500
400 EUROPE
rts Qatar LNG Joint-Ventures po 300 Im ting Exis
200 Regional
100 Production
0 1990 2000 2010 2020 2030
Early recognition of emerging Europe supply/demand gap
24 Bring Gas to Market
Gas Supply / Demand … LNG To Europe BCFD 900 500500 TCF
400400 ExxonMobil EUROPE
orts Europe300 Position Imp 300 ting Exis
200200 Regional Production 100100
00 199090 200000 201010 2020 20 203030 Qatar LNG Joint-Ventures
ExxonMobil well-positioned to market large gas volume in UK
25 Bring Gas to Market … LNG To Europe
Gas Supply / Demand 900 BCFD TCF 500500
400400 EUROPE
orts 300 Imp 300 ting Exis
200200 ExxonMobil Regional Europe Position Production 100100
00 Qatar LNG Joint-Ventures 199090 200000 201010 2020 20 203030 Leading Technology
ExxonMobil at forefront of technology to lower LNG costs
26 Bring Gas to Market
… LNG To Europe
Gas Supply / Demand 900 BCFD TCF 500500
400400 EUROPE
orts 300 Imp 300 ting Exis ExxonMobil 200200 Regional Europe Position Production 100100
00 Qatar LNG Joint-Ventures 199090 200000 201010 2020 20 203030
Up to 2 BCFD UK gas sales for 25 years Leading Technology
27 New Gas Investment in Europe
• 11 new production start-ups 2005- 2009+ – 4+ BCFD total peak production
• 2 LNG terminals under construction
• Ongoing exploration activities – 6 near-term wells
Projects 2005 – 2009+ – 4,400 square miles new acreage LNG Terminals Exploration Wells New Exploration Acreage
28 ExxonMobil Superior Business Approach
Disciplined Investment • Staying the course
Growth in Superior Shareholder Operational • Building our advantages Cash Flow Value Excellence
Industry • Growing shareholder value Leading Returns
29