An ExxonMobil publication

Project excellence Plus Guyana discovery Bass Strait Fuel standards OFC1 Knowledge business Baytown update – 2 No. 2015 1 Project execution excellence

15 9 29 Photo by Robert Seale 5

Upfront

Rex W. Tillerson In May of this year, an ExxonMobil resources, and how we derive standard. The new rules could Chairman and CEO Mark W. Albers team of explorers and drillers maximum value from them. create significant problems, and a Senior Vice President successfully brought in the Liza 1 Beginning on page 5, our story on page 13 provides details. Michael J. Dolan Senior Vice President well 120 miles off the coast of the cover story features an interview A profile of the work special- Andrew P. Swiger South American nation of Guyana. with Jim Flood and John Plugge, ized ExxonMobil procurement, Senior Vice President Liza is a true frontier wildcat well – vice presidents with ExxonMobil real estate, information technol- Jack P. Williams Senior Vice President a significant discovery, and the Development Company. In ogy and other teams conduct to Darren W. Woods first drilled on a block spanning the article, they describe support our operations in remote Senior Vice President 6.6 million acres. The story of how how ExxonMobil safely and areas starts on page 21. Plus, Kenneth P. Cohen Vice President-Public and Government Affairs technology, talent and experience consistently completes complex Delivering information (page 25), Jeffrey J. Woodbury brought about a great outcome oil and gas projects faster and at Bass Strait update (page 29) and Vice President-Investor Relations and Secretary begins on page 15. a lower cost than its competitors. Mobil 1 in Singapore (page 34). Bob Davis Editor Continuing this issue’s focus on Most drivers know that the We hope you enjoy this issue Pat Gabriel the challenges of exploration, on gasoline and diesel fuel that of The Lamp. GCG Marketing Art Director page 9 is an in-depth interview we put in our vehicles contains Len Shelton with Steve Greenlee, president of ethanol. But what many don’t Photography Coordinator ExxonMobil Exploration Company. know is that the Environmental Cynthia Solomon Production and Distribution Coordinator Greenlee discusses, among other Protection Agency has raised the Bob Davis topics, the company’s integrated ethanol portion of motor fuel Editor

Please address all Lamp correspondence, approach to adding high-quality above the current 10 percent including requests to reproduce any portion of the magazine, to the editor at Exxon Mobil Corporation, 5959 Las Colinas Blvd., Irving, TX 75039-2298.

In this issue 3 13 25 Just the right time Repeal the biofuel mandate Knowledge is their business Digital issue now available Reforms would help the More rules will make a difficult Information when and where A digital issue of The Lamp is chemical industry situation worse it’s needed now available online. Please visit exxonmobil.com/digitallamp 5 15 29 to have a look. A reputation for excellence Technology and vision Bass Strait at 50 Leading the industry in A major discovery offshore Guyana Australian venture marks a milestone project execution 21 33 9 Frontier support Panorama A great time for exploration for business success Business highlights Meet Steve Greenlee, president of Providing safe, secure operations from around the world ExxonMobil Exploration Company around the world

2 Bipartisan efforts at just the right time By Rex W. Tillerson Chairman and CEO of Exxon Mobil Corporation

Evidence continues to show that have announced approximately new federal, state and local tax It’s taken years of bipartisan the U.S. economy is struggling. $150 billion in investments. revenues by 2023. work and negotiation, but these And economists from across the The chemical industry is build- But the future successes of the changes are just the comprehen- ideological spectrum have rightly ing new plants – and retrofit- shale revolution and America’s sive overhaul we need. observed that by historic stan- ting others to leverage U.S. manufacturing renaissance are Just as important, these bipar- dards, this is one of the weakest natural gas. The data on nominal not forgone conclusions. tisan efforts appear to have an U.S. recoveries on record. construction spending shows We need policies equal to this excellent chance of succeeding. But even in the midst of construction spending by the historic opportunity. The reform is drawing impressive anemic growth and falling labor- chemical industry increased near- The good news is that the support from the industry, building force participation rates, one sec- ly 140 percent from June 2014 to chemical sector may be getting trade unions and organizations tor continues to power forward: June 2015, with the growth rate some timely assistance from including the Environmental America’s chemical industry. exceeding 150 percent in the first a rare instance of Washington Defense Fund, National Wildlife The reason for the resurgence half of this year alone. bipartisanship. Federation, March of Dimes and is well known: Vast new supplies Democrats and Republicans U.S. Humane Society. of natural gas flowing from U.S. Investments and jobs in Congress have come together shale deposits have given Ameri- If all of the industry’s invest- in an effort to modernize the Modernization can chemical manufacturers a ments move forward, they will Toxic Substances Controls Act By modernizing the regulations global advantage. create nearly $300 billion in new (TSCA), the outdated regulations governing the chemical industry, The response from the indus- economic output and lead to affecting the chemical industry. we can strengthen and clarify the try is a flurry of activity that could more than 400,000 new jobs. The proposed reforms will help role of government in overseeing reap benefits for decades to The investments would also bring 1970s legislation into the and protecting public health. The come. Chemical manufacturers lead to $21 billion in permanent 21st century. proposed reforms would provide

3 a better system for the Environ- food packaging and storage, to in Washington, a patchwork of whelming bipartisan support. And mental Protection Agency to building materials. Chemicals are state and local laws now exists in the Senate, a coalition of both evaluate risks of both new and vital to making the world safer and – further complicating interstate Democrats and Republicans are existing chemicals using the healthier. They are also critical to commerce and the industry’s pushing similar legislation across best available science. This will using energy more efficiently, as investment decisions. the finish line in the hopes of give the public confidence in the well as helping us minimize man- Thanks to the efforts of leaders sending a final bill to the presi- safety of the chemical products kind’s impact on the environment. from both parties in Washington, dent’s desk. used every day. But over the decades, the we can look forward to clearing Those in Congress who are Regulatory modernization will regulatory landscape for the U.S. away that clutter and enacting working together to modern- also help strengthen and sustain chemical sector has been mired reforms that bring clarity, certainty ize TSCA regulations deserve America’s role as a leading inno- in complexity and uncertainties and consistency to America’s dy- credit. They are acting in the best vator for chemical products – an because of anachronistic Wash- namic and vital chemical industry. interests of our economy and our area that drives 25 percent of the ington rules. With these reforms, parents in ev- environment. They are also setting U.S. economy. ery state can be confident that their an example for modern Wash- To borrow a phrase from Broken system children are adequately protected ington – building bridges across Daniel Yergin, plastics and The TSCA has made it difficult to from any risks, while manufacturers parties to act with wisdom and chemical products are “the bricks greenlight innovations or effec- from New Jersey to California will common sense. and mortar of contemporary tively calculate the costs of various have the regulatory certainty they It is a moment for which we can civilization.” They are found in 96 policy options. Because the federal need to continue to innovate and all give thanks – and which should percent of manufactured goods legislation is so out of date, this create jobs. guide the efforts of our elected – from lifesaving medical devices system is not working. In the face TSCA modernization passed the leaders and policymakers in the and personal technologies, to of this dysfunction and ambiguity House this summer with over- future.

4 A reputation for excellence John Plugge, vice president of project management and execution; and Jim Flood, vice president of arctic and eastern Canada, discuss how ExxonMobil Development Company leads the industry in project execution.

ExxonMobil has become oil-equivalent barrels represent- experts to provide solutions to recognized for completing oil ing conventional and uncon- any issues. We know of no other and gas development projects ventional oil and gas, heavy oil, international oil company with faster and at a lower cost than and liquefied natural gas (LNG) that capability. its competition. Why is that? around the globe. This diversity has allowed us to be selective in What factors must you consider Plugge: The underlying reason pursuing the right projects at the in early project planning? dates back to Exxon’s decision right time. In addition, we have before the merger with Mobil to developed a structured project Plugge: Among the more critical establish one upstream company management system that has steps is selecting a leadership that was all about project man- enabled not only performance team that understands the tech- agement. That move reflected consistency but a means for nical side of the work and has the corporation’s anticipation of continuous improvement. Most the right management skills. This significant growth in the number importantly, in completing more decision evolves out of a process and size of development projects than 100 projects over the past by which we decide if a project around the world, including 15 years, we have developed a will be routine, meaning that it is many in higher-cost environ- highly experienced workforce something we have done before, ments. Rather than the traditional with a depth of technical and or nonroutine. Nonroutine model of carrying out develop- management expertise that is projects tend to be bigger, more ment through affiliates, Exxon unmatched by our competitors. complex and require many years foresaw the efficiencies of having to complete. By distinguishing one organization consistently and Flood: Let me add that our routine versus nonroutine early flexibly deploying its expertise project management structure on, we can select the leaders and wherever needed. focuses accountability for project teams best suited for the project. execution at a regional level with How has the company ad- the backing of one global organi- Flood: Based on EMDC’s 15-plus vanced its reputation for proj- zation that provides the people, years of proven, demonstrated ect execution since the merger? processes and tools for those project experience, we under- projects. Our global organization stand that it’s critical to lock down Plugge: First, ExxonMobil Devel- “sees the world,” so to speak, the development concept as soon opment Company (EMDC) has and within 24 hours we can as possible. The key then is to had the benefit of working with apply lessons learned from one manage each of the critical transi- the industry’s largest and most region to another when issues tions, from front-end engineering diverse portfolio of projects. Our occur, regardless of whether to detailed design to the begin- portfolio contains more than 120 they’re positive or negative. We ning of the construction phase projects to develop 24 billion have the ability to fly in project

so that we can resolve all major Robert by SealePhoto

5 Story by Mike Long ExxonMobil’s Jim Flood (left) and John Plugge.

6 Photo by Richard Dellman Execution excellence allowed ExxonMobil to start up the Papua New Guinea liquefied natural gas project ahead of schedule in 2014.

project issues before moving from again for engineering, procuring of a floating production, storage How does ExxonMobil’s one phase to the next. We have equipment, fabricating facilities, and offloading vessel and a project execution benefit seen major projects in the industry hooking up modules, building tension-leg drilling platform in from new technology? get derailed due to a constant re- ship hulls, performing pre- an industry-record 34 months. cycling of poor decisions, resulting commissioning and other work. We then adopted the design- Plugge: New technology, which in the delay of critical engineering In particular, their learning curve one, build-multiple concept mainly comes from ExxonMobil deliverables. This can have a sig- has grown tremendously, espe- when we essentially replicated Upstream Research, improves nificant negative impact, including cially with their participation in Kizomba A for Kizomba B and project economics and is critically driving up costs and delaying proj- our design-one, build-multiple delivered the same scope of important amid today’s lower oil ect completion. We must eliminate approach. This has helped us work in an industry-record 31 and gas prices. A good example uncertainty as early as possible to increase overall project predict- months. We have since used the is in Canada, where we could ensure that you enhance project ability, lower costs and achieve approach many times, including use solvent-assisted steam to predictability for both cost and faster project completion. at Sakhalin-1 in Russia and both produce more bitumen from our schedule performance. the initial and expansion heavy- Aspen development. This new When did ExxonMobil oil projects at Kearl in western technology, along with other How else do you achieve have its first big success Canada, as well as at our joint capital-efficiency initiatives, has better predictability? with the design-one, venture in Qatar with RasGas significantly reduced costs. build-multiple approach? and Qatargas to build multiple Plugge: It’s critical that we LNG trains. We also plan to use What other competitive select contractors with the core Flood: It started with the it with the future SAGD oil sands advantages does ExxonMobil competency for the work we Kizomba A and B deepwater project in western Canada and have in project execution? want done. EMDC has built a developments in Angola. We the potential Liza deepwater global network of contractors to completed Kizomba A in 2004, development in Guyana. Flood: First is our disciplined whom we return time and time including installation and startup ExxonMobil Capital Project Sys-

7 Structured project management provides efficiencies at Photo by Robert Seale A design-one, build-multiple approach cut costs and stream- Sakhalin-1 in Russia and other major projects worldwide. lined schedules at the Kizomba developments offshore Angola.

tems (EMCAPS), that standardize Whether it’s Exploration, Produc- improvement since the estab- Safety Awards since the awards our processes across all projects. tion, or Gas and Power Marketing, lishment of EMDC. But people started in 2007. Second is our structured gate we act as an integrated upstream are still getting hurt. We know process to assure that we finish company and work to meet the we need to continue to drive Plugge: Our safety success work before moving onto the general interest of the corpora- the value of caring about the also comes down to the strong next phase. This approach also tion. A great example is how we safety of each and every person relationships we have established allows us to confirm that project integrate production personnel at our work sites so that we with our contractors, which risks are properly addressed and into the project team before front- can achieve our objective of have never been better. We to test the economics to assure end engineering to provide an op- “Nobody Gets Hurt.” A great have excellent alignment about the project is well founded and erational perspective all the way example of our safety progress safety and what it means for the meets our stakeholders’ require- through the commissioning and is Sakhalin-1 in Russia. When business. Our practice of having ments for implementation. In startup phase. This one-team ap- we started almost 15 years ago, ExxonMobil teams work alongside addition, EMCAPS is our execu- proach is more efficient and timely we didn’t know a lot about the contractor teams in the contrac- tion framework for managing compared to industry norms, and safety culture in Russia. With tors’ fabrication yards and design the corporation’s Operations is being extended to the concept continuous projects over this shops has helped us achieve Integrity Management System, execution phase as part of our time and the application of our a leading safety performance. through which we not only de- upstream synergies effort. safety values and principles, we sign and construct facilities with have seen Sakhalin become one safe execution in mind but focus Please comment on how of the corporation’s safest places on their ongoing integrity and project execution excellence to work. The Exxon Neftegas safe operation for the long term. supports improved safety. Limited project and ExxonMobil A third advantage is the inte- Drilling teams have won a com- grated approach we take across Flood: Safety has been a relent- bined 13 ExxonMobil Develop- all of our upstream companies. less journey, with consistent ment Company President’s

8 Steve Greenlee, president of ExxonMobil Exploration Company.

9 A great time to be in exploration The Lamp profiles Steve Greenlee, ExxonMobil Exploration Company president, and how the corporation is competing for the world’s best oil and gas opportunities.

When did you first develop an geologist named Peter Vail. I met Texas and Asia-Pacific before I is partly due to how the com- interest in geoscience? him at a conference on sea-level returned to research as presi- pany’s resource-acquisition effort Actually, my passion was to be- changes and got to see his North dent of ExxonMobil Upstream is structured today. Exploration is come an oceanographer. My dad, Sea research. I subsequently de- Research in Houston. In 2010, I focused primarily on discovering a dentist, loved getting outdoors cided Exxon was the place for me. became president of ExxonMobil new fields rather than its tradi- for fishing, surfing and skiing, I started at EPR in Houston Exploration Company. tional responsibility for adding so we spent a lot of time on the in 1981, planning to eventually all resources to the corporation’s Jersey Shore. Early on, I enjoyed return to graduate school for How would you summarize portfolio. ExxonMobil Upstream reading books on just about a Ph.D. and work in academia. Exploration’s function? Ventures focuses on securing in- anything that had to do with the But we were conducting seismic Our job is to discover new terests in discovered but undevel- ocean, and if you had asked me stratigraphy workshops all over sources of oil and gas that are oped oil and gas resources. The a question about coral reefs or the world and developing lots of better than what is already in corporation’s XTO Energy affiliate ocean currents, I probably could new concepts. It was so much ExxonMobil’s industry-leading specializes in North American have talked for hours. In planning fun that I couldn’t believe I was resource base, now estimated at unconventional resources mainly for college, I discovered the best getting paid to do it. I remained 92 billion oil-equivalent barrels. in shale plays. way to follow my passion was at EPR for 12 years. By better, I mean they have the through geology. After obtaining potential to generate a higher How does this provide benefit? a bachelor’s degree in geology What assignments followed? economic return over the life of From a corporate standpoint, it from Duke University, I pursued a My first full-time move out of the resource for all stakeholders. benefits us by allowing each busi- master’s in oceanography at the research was a dramatic one. We’re not just in the business of ness line to focus on a specialized University of Rhode Island. In 1993, the new Exxon Ven- replacing what has been pro- area or role. Our competitors tures (CIS) Inc. assigned me as duced. We are after high-value might be good explorers, or What led you to ExxonMobil? a supervisor in western Siberia. opportunities. good at negotiating acquisitions, I was writing my master’s I next worked in Kazakhstan or experts in unconventional thesis on the science of seismic before moving to New Orleans How well is ExxonMobil plays. But we can pursue all three stratigraphy. The details of that as a manager for Exxon’s Gulf of positioned to carry this out? at the same time. With our three science were invented at Exxon Mexico production unit. After the We are better positioned than organizations working together Production Research (EPR) under merger with Mobil, assignments ever to identify and pursue the while focused on our individual the leadership of a fascinating followed in Brazil, Saudi Arabia, greatest-value opportunities. This specialized roles, we are in a

Story by Mike Long Photography by Robert Seale 10 stronger position to look for the Where has the corporation In July, we announced a most attractive opportunities. had success with a significant oil discovery on a Exploration is not a stand- full life cycle model? 6.6 million-acre block – about alone business line. We don’t A recent example is the Papua 10,000 square miles – offshore drill a discovery and then sell it New Guinea (PNG) liquefied natu- Guyana in South America (see to someone else to develop and ral gas (LNG) project that started story, page 15). We’re optimistic produce. We can apply the full up in 2014. It has the potential to about establishing a long-term breadth of ExxonMobil’s indus- produce some 9 trillion cubic feet presence in Guyana to help the try-leading upstream organiza- of natural gas for export to Asian nation build the infrastructure to tion from exploration and devel- markets as LNG for decades to support development of its oil opment through production and come. ExxonMobil brought all of and gas resources. gas marketing, all supported by a its upstream strengths to bear in research company that provides an extremely challenging environ- Switching topics a bit, how the latest technology. Plus we ment with minimal pre-existing does Exploration develop its have world-class downstream infrastructure. But we have put in geoscience talent? and chemical businesses. This place the ingredients needed for a We focus on having employees allows us to generate maximum successful long-term project and experience the full breadth of pe- value through the full life cycle a strong relationship with the gov- troleum geoscience, from the ini- of an energy development. This ernment and the people of PNG. tial exploration concept all the way is ExxonMobil’s prime differen- Best yet, we are still exploring for through the last barrel produced. tiator, and it is a strength that new resource opportunities. The best geologist is the one who is particularly attractive to host Of course, we have estab- has worked in teams with the governments. lished long-term relationships all engineers, commercial people, over the world. gas marketers and others to learn

ExxonMobil Exploration by the numbers Employs about 1,000, including 650 geoscientists. Explores in more than 30 countries. Explores on 116 million acres. Our exploration drilling program added 2.7 billion oil-equivalent barrels in 2014, with additions from multiple resource types around the world. Additions from exploration drilling averaged approximately 2 billion oil-equivalent barrels per year over the last decade.

A major ExxonMobil strength is generating maximum value through the full life cycle of a development.

11 From left: ExxonMobil Exploration Company’s Kim Begay-Jackson, Steve Greenlee, Norm Allegar and Paul Lee discuss the results of a 2015 seismic program conducted at the Sakhalin-1 project.

how to develop a superior project. tioned to continue competing for How is ExxonMobil’s paving the way for exploration, Those who become technical the most attractive opportuni- technology leadership development and production in and business leaders within the ties. We are organically growing keeping it more competitive? ultradeep water. corporation will have a complete exploration in new areas, and We have capabilities to see things While some of our competi- understanding of what is required searching for more opportunities others can’t. For example, our tors, for instance, are focusing to create the most value for in established areas. new full wavefield inversion tech- exclusively on U.S. shale plays, shareholders. These opportunities Further, we are seeing a lot nology allows us to model subsur- our exploration opportunities are not necessarily available within more exploration prospects face geology in much more detail span the globe, and we continue many other companies. coming on the market. Some of than the industry could achieve to progress into increasingly these involve situations where fi- before. And this is just one of a challenging areas as our technol- How are lower crude oil and nancially constrained companies number of seismic-imaging tech- ogy advances. natural gas prices affecting are offering attractive deals in nologies made possible by our Without a doubt, it’s a great exploration? which we can acquire an interest industry-leading use of super-fast, time to be in exploration. Some might think we would be and help them explore their qual- high-performance computing. significantly pulling back, as many ity properties. This is particu- ExxonMobil’s technology ad- in the industry have. While our larly true in the international and vantage also spans the upstream capital expenditures are down deepwater sectors. to include drilling, engineer- from last year, we are well posi- ing and facilities design – all

12 Repeal the U.S. biofuels mandate

ExxonMobil supports environmental protection and policies based on sound science. But rules requiring ever-higher biofuel blends will only make a difficult situation worse.

Elisabeth Vrahopoulou, ExxonMobil senior fuels advisor.

13 Story by Thomas L. Torget Photo by Janice Rubin ExxonMobil clean fuels research Our Corporate Strategic Research laboratory and ExxonMobil Research and Engineering Company conduct an array of programs designed to study future transportation fuels and engines. Biofuels research For nearly 10 years, the U.S. En- ever, that’s not true for higher- includes collaborating with Iowa State University on vironmental Protection Agency percentage blends. Ethanol is using heat to convert biomass into intermediates, (EPA) has required refiners to corrosive and attracts water. which can then be upgraded into fuel, and research blend biofuels into gasoline and Testing such as that conducted involving advanced biofuels from algae. diesel sold in the U.S. The EPA by the Coordinated Research Other important programs include the study of recently finalized rules that Council has shown that dam- advanced technologies for increasing fuel economy effectively raise the ethanol age to engine seals, hoses, fuel by separating fuel into high- and low-octane streams, portion of gasoline above the systems and exhaust systems which the engine can use to optimize fuel economy current 10 percent level. Such can occur when ethanol content during driving. rules will likely create serious in fuel rises above 10 percent. problems for motorists, fuel This applies to cars, trucks, retailers and refiners, with no motorcycles, boat engines, lawn benefits for the environment. mowers, snowmobiles and other The EPA’s biofuels regula- gasoline-fueled engines. tions are part of a renewable fuel “The majority of vehicles on systems to keep E85 separate date for 2015 is about 17 billion standard (RFS) first legislated by the road today are designed and from other fuels. According to the gallons, that number more than Congress in 2005 and amended warranted for fuels up to E10,” Petroleum Marketers Association doubles to 36 billion gallons by in 2007. The RFS was primar- says Elisabeth Vrahopoulou, se- of America, “… FFV owners are 2022. Non-food-based biofuels ily intended to improve energy nior fuels advisor for ExxonMobil choosing to fill up with gasoline that could be used in place of security based on two key as- Refining and Supply Company. due to its 27 percent higher higher ethanol blends – which sumptions: that annual U.S. fuel “It is estimated that less than energy content and superior fuel the RFS envisioned – are available consumption would continue ris- 15 percent of the cars and light- economy. Given the slim margins commercially, but in very limited ing indefinitely and that domestic duty trucks are designed and on retail fuel sales, retailers are quantities due to significant tech- oil supplies would be insufficient warranted for blends containing forced to convert slow-moving nological and economic hurdles. to meet that rising demand. more than 10 percent ethanol. E85 tanks back to gasoline in In short, the RFS requires Both assumptions are false. In fact, auto manufacturers have order to increase volume and fuels that are incompatible with Gasoline demand actually de- unanimously advised consum- maintain profitability. Consumer today’s manufacturing technolo- creased since lawmakers enacted ers not to use higher ethanol choice is the real reason E85 gies and vehicle fleet. the legislation, driven by the 2007 blends like E15 in vehicles unless pumps are on the decline.” “The RFS should be scrapped, recession and reduced consump- the owner’s manual specifies or at the very least reformed,” tion brought about by the such fuels. The use of fuels with Flawed policy says Ken Cohen, Exxon Mobil replacement of older, less fuel- higher than 10 percent ethanol Given the trend of decreasing Corporation Public and Gov- efficient vehicles with newer can void vehicle warranties.” domestic gasoline demand, it ernment Affairs vice president. ones. In addition, domestic oil and Over the years, some manu- follows that U.S. refiners won’t “The EPA should limit its ethanol gas production is up dramatically facturers have offered “flex need more ethanol in the future mandates to no more than 9.7 due to technological advances. fuel vehicles” (FFVs) that can to produce E10 fuels. Neverthe- percent of total U.S. gasoline de- The United States is now the safely use higher ethanol blends, less, the EPA requires refiners to mand. That would ensure that the world’s leading energy producer. including E85, which contains as increase the amounts of ethanol gasoline sold at service stations much as 83 percent ethanol. But they blend into their motor fuels across America does not pose E10 blend ethanol has lower energy density each year. This not only increases any threat to the tens of millions Nearly all gasoline sold today in than gasoline and yields fewer the percentage of ethanol in mo- of automobile engines not war- this country contains up to 10 miles per gallon. The market avail- tor fuel, but it ultimately exceeds ranted by car manufacturers to percent corn-based ethanol. ability of E85 is limited because the operational design standards handle gasoline with more than This blend, known as E10, is not any retailer offering it must install of most automobiles. 10 percent ethanol.” harmful to vehicle engines. How- expensive storage and handling While the EPA’s biofuels man-

14 A testament to technology and vision Company completes successful Liza 1 well offshore Guyana.

Jeff Simons heads the company’s venture office in Georgetown, Guyana.

The data from the well logs of the Liza 1 well since crews to grow by the hour as the drill looked promising, and a re- started drilling in March. bit approached the top of the pre- strained optimism began to build “A small team worked more dicted reservoir section.” among small groups of specialists than a year designing and While the team in Houston at the company’s north Houston executing a plan that had now prepared to analyze the real-time campus, at its Georgetown ven- brought us to the brink of what results soon to come, Moreland ture office, and aboard the drill- could be a major discovery,” says boarded a flight to Guyana early ship Deepwater Champion 120 Moreland, who began her career the morning of Monday, May 4, to miles off the coast of the South with the company in 2005 after be at the well site the moment the American nation of Guyana. graduating from the University first results came in. Kerry Moreland and a team of of Oklahoma with a master’s “When I finally arrived in other ExxonMobil geoscientists degree in geophysics. “The sus- Georgetown, the drillers had just had been tracking the progress pense and excitement continued entered the reservoir section some

15 Story by Bob Davis A testament to technology and vision

LIZA 1

Georgetown South America

Guyana

Photo by Robert Seale

11,000 feet beneath the seabed,” “We didn’t know at that point Champion, Moreland and the The Liza 1 discovery well is 120 miles Moreland says. “I was too excited what we had, since we were drill- wellsite geologists had the benefit offshore Guyana in to sleep, even for a few hours, and ing in and out of several sands,” of something else that supported 5,700 feet of water. was at our helicopter base at dawn. says Jeff Simons, country man- the significance of the find: the drill By 9 a.m., I was aboard the ship.” ager, who transferred to Guyana cuttings from the reservoir itself. By this time the Exploration and in late 2014 from an assignment “We analyzed the rock frag- Drilling teams in Houston, as well in Europe. “Drilling continued ments in a small lab on board the as those on the third floor of the through the night, and on the ship, both for rock type and for small Guyana venture office, felt morning of May 6, it became what we call ‘shows,’” Moreland they could be witnessing some- clear we’d found a column of hy- says. “That analysis, along with the thing big, as the well logs showed drocarbons extending more than well logs acquired while drilling, the intermittent presence of 295 feet. That’s big, really big.” suggested the potential for a sig- hydrocarbons within the target. On board the Deepwater nificant volume of high-quality oil.”

16 Photo Getty Images Inc. Guyana at a glance Population: 800,000, concentrated along the Climate: Tropical, with an average temperature of country’s coast. 81.5 degrees Fahrenheit Government: Multiparty democratic republic. Flora: Approximately 80 percent of Guyana is tropical rainforest, much of it untouched. Area: 83,000 square miles, about the size of Idaho. Biodiversity: The country has 225 species of Economy: Agriculture, timber, fishing and mining. mammals, more than 300 species of reptiles and Languages: English (official), Creole, Hindi, Urdu, amphibians, 815 (and counting) species of birds, Chinese, Amerindian dialects. and more than 6,500 types of plants.

Photo Getty Images Inc.

A longshot “Geologically, the well was sin. In addition, oil and gas shows potential future appraisal drilling, The odds were against it. The quite risky,” Moreland says, “with in previously drilled wells closer the largest 3-D seismic survey Stabroek block that ExxonMobil a low probability that it would to the coast indicated a working in the company’s history is now acquired rights to explore from turn out to be successful. It was a hydrocarbon system potentially underway on the Stabroek block. the Republic of Guyana is 6.6 mil- true frontier wildcat well.” extending farther offshore into Two seismic vessels are acquir- lion acres. Water depth at the site But she goes on to explain the Liza area.” ing data over approximately 6,500 exceeds a mile. There had never that the location of the Liza 1 square miles, an area comparable been a well drilled anywhere on well held particular interest for Next steps to the land mass of the Hawaiian the block. The 22 wells drilled by the explorers, since initial seismic While ExxonMobil techni- Islands. The program includes two other companies since the 1970s data and geologic analysis of the cal experts in the Exploration, support ships that make sure that on the coastal shelf outside the region “suggested the presence Development and Upstream there’s no interference from other southern boundaries of the block of sediment fairways transporting Research companies continue to vessels in the area, as well as two had all proved noncommercial. sandstone reservoirs into the ba- analyze the well data and plan for supply boats making regular trips

17 Above: Kaieteur Falls in Guyana’s interior rainforest is among the highest and most powerful waterfalls in the world. Above left: There are more than 800 species of birds in the country, including macaws and other parrots. Left: Located at the mouth of Guyana’s Demerara River, this old red and white striped lighthouse guided many ships into Port Georgetown. Far left: City Hall, with its Disney- like spires, houses the offices of

Photo GettyPhoto Inc. Images Robert by SealePhoto Georgetown’s mayor and city council.

18 The Liza 1 team Kerry Moreland, Guyana basin from Georgetown and Trinidad to project manager. bring food, equipment and sup- Scott Dyksterhuis, lead Liza geoscientist. plies to crews. Randy Perkey, lead block geoscientist. With support from the Lisa Roehl, project manager during Guyanese government, company Liza’s drilling. teams mobilized this seismic Brooke Harris, commercial advisor. program in about six weeks after Linda Price, regional geoscientist. the discovery, an extraordinary achievement. The Deepwater Champion finished drilling and Liza 1 overview moved off location June 20, and Discovery is in a challenging frontier, by mid-July all permits were in unproven basin. place and the seismic vessels Stabroek block is 6.6 million acres. began acquiring data. Water depth at the Liza 1 well In Georgetown, the capital is 5,719 feet. of Guyana, there’s excitement Total well depth is 17,825 feet. and anticipation for what the Reservoir found in sandstone is from the Upper Cretaceous period discovery could ultimately mean (~70 million years old). for the country’s future. Guy- ana’s Minister for Governance and Spokesman for Natural Scott Dyksterhuis (left), Kerry Moreland and Resources Raphael Trotman says Randy Perkey recap the drilling that he and the other leaders of of the Liza 1 discovery well.

his nation view Liza as more than simply a discovery of oil. “For many generations, we have always believed in the po- tential for the discovery of oil off our shores, and in our sovereign right to produce that oil,” he says. “By the same token, the Liza discovery has coincided with the election of a new government in Guyana and the upcoming 50- year anniversary of our country’s independence. So we are viewing this in more than simply econom- ic terms: it has imbued a sense of responsibility, and a new spirit of hope and pride in our nation.”

Photo by Robert by SealePhoto Trotman goes on to say that

Guyana Minister for Governance and Spokesman for Natural Resources Raphael Trotman says the Liza 1 discovery has brought a new spirit of hope and pride to his country.

19 Photo by Robert Seale if development were to occur, suite that Queen Elizabeth had a new hotel. More specialists in pany, believes the success of the he views the relationship with once used during her visit to the drilling; geology; computer and Liza 1 well is a fine example of ExxonMobil as similar to the country in 1994,” Simons recalls. telecommunications support; ExxonMobil technology, experi- forging of a long-term partner- “Their equipment was basically safety, health and environment; ence and talent at work. ship. “ExxonMobil for us is more a copy machine and a computer procurement; public and govern- “We applied advanced seismic than just a company; it’s more like connection to Houston. Soon ment affairs and other functions imaging and analysis; our global a trusted partner who is add- after I arrived, staffing grew to have since joined the staff, which experience; and an integrated, ing value to our association … a four employees, and we set up a now numbers about 20 employ- well-planned approach by talent- partner with whom we can share transition office in a small space ees and contractors. ed teams in Guyana and Houston our vision.” in an apartment building outside “But even as the office has to successfully overcome the un- of town.” grown, we operate as a close- certainties of a truly frontier well Office evolution By November 2014, with the knit team, where everyone looks that will add valuable resources Jeff Simons remembers when start of Liza drilling drawing near, out for each other and helps get to ExxonMobil’s portfolio and the company started gearing up the core team and several addi- things done,” Simons says. create great value for the nation in earnest a few years ago for its tional employees moved to larger of Guyana,” he says. commitment to drill the Liza 1 well. quarters on New Market Street Technology and talent “The first team on the ground in the center of the city, close to Steve Greenlee, president of set up desks and phones in a various government offices and ExxonMobil Exploration Com-

20 Frontier support key to business success Global Services Company provides safe, secure offices and operations worldwide.

Jeff Marsh and Kellie Canaday are among hundreds of ExxonMobil specialists provid- ing procurement, real estate and facilities, information technology and other essential services to remote company operations.

21 Story by Tracy Torma Frontier support key to business success Global Services Company provides safe, secure offices and operations worldwide.

When ExxonMobil announced a location. GREF leases or builds ted with high-definition wireless significant oil discovery offshore and manages office space and projectors, 55-inch light-emitting Guyana this year, behind the housing facilities for expatriates. diode displays and ClickShare scenes of the successful explora- ExxonMobil Information Technol- presentation technology. The tion effort was a team of real ogy (EMIT) professionals provide 72-acre site includes a recreation estate, information technology computing, network and telecom- center for employees. and procurement experts. munications capabilities, and “We accomplished this in a From setting up office space, Global Procurement secures the country that has few examples of to securing equipment and con- goods and services to run the op- this type of advanced construction tracts for operations, to building erations – everything from drilling and with a workforce made up residential housing for expatriate equipment to pens and pencils. mostly of local workers,” says Dave employees in remote locales, Often, new exploration and Baker, senior project manager. ExxonMobil Global Services production areas are in remote Company (GSC) provides critical locations in underdeveloped First on the ground support to exploration, develop- countries. Office space may be The GSC team’s involvement ment and production activities in limited or unavailable. Telecom- starts at the beginning of a frontier locations worldwide. munications links are nonexis- project. “We’re integrated with “We help the business focus on tent. Even roads and airports the business to understand its its core job of finding and produc- needed to get essential supplies long-term strategy and to deliver ing oil,” says Peter Sturla, Global into these areas can be limited. solutions to get operations up Real Estate and Facilities (GREF) “For our permanent facilities and running,” Clare says. Angola project manager. “Above compound to support LNG op- Today, ExxonMobil has 18 ven- all, we want employees to be erations in Papua New Guinea, ture offices throughout the world. safe. As such, we strive to provide the company started by putting The company often establishes them with secure and comfort- in roads to get to our site, build- new offices in frontier locations able office and living quarters so ing power generation and water in a hotel, as it did in Guyana (see that they can concentrate on the treatment plants and installing story, page 15). jobs at hand.” telecommunications,” says Scott “As ExxonMobil enters a new Sturla is currently overseeing Clare, manager of Asia-Pacific country and works with the construction of a new 60-unit real estate and projects for GREF. government to set up production- housing complex in Angola for Now that LNG production has sharing agreements, the advance expatriates supporting the com- begun, GREF has also completed team needs support and equip- pany’s upstream operations. In construction of a state-of-the-art ment from the very first day,” says the past five years, he has helped facility to support ExxonMobil’s Jeff Marsh, who oversees pro- build offices in Dubai and housing workforce. curement for drilling and explora- in Saudi Arabia and Egypt. The ExxonMobil Haus in tion projects around the world. Papua New Guinea (PNG) now GREF, EMIT and Procurement A team effort accommodates more than 300 work together to set up offices, Three key GSC organizations help employees and features many of communications networks and get operations up and running, the same amenities as the new living arrangements for person- and provide safe offices and Houston campus, including ad- nel. They also work closely with housing for employees when justable workstations in an open, ExxonMobil Security and Medicine ExxonMobil enters a frontier collaborative environment outfit- and Occupational Health to Photo by Robert by SealePhoto

22 This 60-unit housing complex in Luanda, Angola, is nearing completion and consolidates three previous locations into one.

ensure that working and living regulations in the specific country of thousands of dollars a day.” arrangements are safe. and develop the right agree- Providing infrastructure for in- “Proximity to our office and a ments,” Marsh says. formation technology can also be local airport is critical in selecting There is continual planning to challenging. “We may be operat- a housing location,” Sturla says. make sure that resources and ing in an environment with harsh “In developed locales, we look for services are available in remote conditions, such as the North housing that’s already built. Here locations. “When you’re drill- Slope of Alaska, where below- in Angola, we’re consolidating ing 120 miles offshore South freezing temperatures and polar current housing into a new com- America and something breaks, bears are a threat, or in politically pound of three-bedroom houses.” you can’t pick up the phone and unsettled locations like Basra, While GREF handles work and get a replacement part delivered Iraq,” says Kellie Canaday, whose living arrangements, the Procure- immediately,” Marsh says. “One team sets up IT infrastructure and ment team develops contracts and of the first contracts we put in communications for upstream secures suppliers. “Often, there are place for drilling campaigns is locations worldwide. limited suppliers to choose from a shore base for materials and “Security issues and logistics can and logistics challenges. We also equipment. An idle rig waiting make getting people and equip- have to understand the rules and for equipment can cost hundreds ment into a location very chal-

23 “We help the business focus on its core job of finding and producing oil.” Peter Sturla Global Real Estate and Facilities Angola project manager

In Papua New Guinea, more than 360 employees will work in the ExxonMobil Haus, which features an open, collaborative work environment.

lenging, she adds. “Often, the sites When offices become opera- Concentrating on people ees quality office space, secure lack basic infrastructure, and when tional, the company hires local But the underlying impact of residential facilities, and other there are no existing networks we workers to oversee office man- GSC’s involvement at frontier technical tools and equipment so can tie into, we deploy satellite agement and to provide procure- sites is its capability to provide they can produce oil and gas.” and microwave services to provide ment, contracting services, IT safer, more secure, productive “Partnership is key to our suc- network capabilities. As projects and other support. and cost-effective offices and cess,” Canaday adds. “We work evolve, we work to develop more “ExxonMobil develops the housing for employees. Along closely with the business, and permanent communication solu- national workforce, optimizing with that goes the installation of understand the direct impact their tions, such as fiber optic cable.” skills and bringing our global computer and telecommunica- work has and the value it provides. knowledge and expertise to train tions systems and the purchase From bringing up a site on day one Lasting impact local engineers, human resources and delivery of needed equip- with IT services to experiencing GSC’s support provides a folks, procurement specialists, real ment and supplies. the startup of production opera- lasting positive effect on the estate professionals and security “You want explorers to tions, there’s tremendous satisfac- local population, including job personnel so that they can oper- explore, developers to develop tion in seeing these projects come creation, skills development, and ate our sites consistently any- and producers to produce,” to fruition.” economic impact through local where in the world,” Sturla notes. Clare says. “Our team’s business leasing and purchasing. is to give ExxonMobil employ-

24 Knowledge is their business ExxonMobil centers provide information when and where it’s needed.

During his 46-year career with wheel,” he says. “You learn from ExxonMobil, research chemist what’s been done, what should Mike Siskin has authored more have been done … and it helps you than 130 company reports, con- take the idea from there.” tributed to over 100 issued U.S. patents, and written more than Focus areas 100 technical publications. Each information center special- When the senior scientific advi- izes in a specific area of research: sor for ExxonMobil Research and The Chemical Information Engineering Company (EMRE) Center in Baytown, Texas, pro- starts a new project, his first stop vides technical information and is the ExxonMobil Downstream intellectual property support Technical Information Center. in the areas of basic chemicals, Located at EMRE’s facility in intermediates and polymers for Clinton, New Jersey, the Down- chemical research and technol- stream Technical Information Cen- ogy centers worldwide. ter is one of four that make up the The Corporate Headquarters In- ExxonMobil Library Information formation Center in Irving, Texas, Network. Staffed by experts with focuses on business research, advanced technical or information including financial, company, science degrees, the centers pro- economic, industry, market, vide timely, cost-effective and qual- government, geopolitical and ity information for the company’s biographical information. toughest information challenges. The Downstream Technical “For the last 46 years, they Information Center in Clinton have been the go-to depart- shares science and engineer- ment for me,” says Siskin, whose ing information and intellectual downstream research has led to property support. breakthroughs in delayed cok- The Upstream Technical Informa- ing processes, development of tion Center at the company’s next-generation absorbents and Houston campus specializes in greater refining efficiencies. geoscience, engineering and Siskin begins each new project commercial technical information, with a request to the center for as well as intellectual property abstracts and articles. “You really support for Upstream Research, need to understand what’s been Exploration, Development, Pro- looked at before and where the duction, Gas and Power Market- gaps are so as not to reinvent the ing, and XTO Energy. Photo by Robert Seale

25 Story by Tracy Torma Gathering before a meeting at the Upstream Technical Information Center in Houston are (from left): Tim Nedwed, senior technical professional advisor; Gina Williamson, librarian; Chris Laursen, information specialist; and Jay Dias, chief scientist.

26 Together, these centers form a point for steel on rigs in the Information Center, says the cen- network of information resourc- Arctic?” These are just a sampling ters go beyond the stereotypical es that employees use to do of questions posed to the 15 image of a library with shelves of their jobs better, faster and with information specialists who staff books. “While we treasure our greater confidence. the information centers. history and maintain historical While the ExxonMobil print materials for research, we At right: Brian Lawless, Specializing in answers information network features look at market resources and manager of global pipeline “What is the grain size of sand historical documents and data trends to provide information integrity, and Dana Higgins, information specialist, in the air in the Eastern desert – including company publica- sources that give the most value collaborate regularly on a of Saudi Arabia during a dust tions and technical reports from to the company,” she says. number of projects. storm?” “What are the salaries heritage companies as far back Sandefur and her team are in- Below: Research Chemist of Norwegian helicopter pilots?” as the 1890s – it has evolved strumental in providing research Mike Siskin begins most “Can you provide demand, with technology services to meet for the yearly ExxonMobil of his research activities capacity, past growth and future current business needs. Outlook for Energy report. Every by calling Marie Latino, information management growth to 2030 for this list of 20 Kristin Sandefur, supervisor day brings new requests for associate, who provides chemicals?” “What is the stress with the Corporate Headquarters business or financial information. detailed studies and reports. Photo by Janice Rubin

27 vide quality industry, technical, Brian Lawless, ExxonMobil’s man- patent and intellectual property ager of global pipeline integrity. information. “If an engineer wants to Fast and accurate calculate a formula for a pres- The staff prides itself on quick sure vessel, we subscribe to a turnarounds. “The advice one of service that allows them to use our information centers gives – interactive formulas,” says Dean ‘If you can’t find it in 15 minutes, Gronostaj, Chemical Information contact us’ – really applies to us Center supervisor. “We also pro- all,” says Information Specialist vide access to a search tool that Dana Higgins. “We want our allows a chemist to draw a mol- clients to get the best information ecule and conduct a search on it, in the timeliest manner so they resulting in the display of patents can make the best decisions.” and journal articles containing Jay Dias, chief scientist with chemical reactions and synthesis ExxonMobil Chemical, says that for that molecule.” rapid input is critical for discovery. The centers produce daily, “A day in the library can save you a weekly and monthly news alerts year in the laboratory,” Dias notes. for senior managers, industry “The information centers provide news for business and technical the foundation for research. Their Photo by Robert Seale teams, competitor information, input forms the basis for new and technology updates for com- projects and also provides quick “Someone in Procurement may through myriad information to pany analysts and engineers – all access to evolving trends in sci- request pricing information in find what’s relevant and accurate designed to provide insights into ence, technology and business.” a certain market, or Public and for employees to do their jobs.” current industry developments. For Tim Nedwed, senior Government Affairs may need to That includes information “We help the company antici- technical professional advisor know about political and social for project teams, searches for pate industry trends, which aids with ExxonMobil’s Upstream issues in a particular country technical data and patents, man- decision-making,” Rucker says. Research Company, speed of where we operate,” she says. agement of proprietary informa- information is powerful. “It al- tion, and answers to copyright Coordinating resources lows my group to cycle through In-depth searches questions. While each information center is ideas quickly,” he says, “making In this day of Google and other “While today’s workers are very specialized, they work together the research and development search engines that provide in- adept at searching for informa- to coordinate resources to process much more efficient stant links to information, the tion,” says James McLennan, provide the most effective access and enabling us to stay on top of centers help employees sort supervisor of the Upstream to knowledge. For example, staff technology.” through the clutter and zero in on Technical Information Center, “the from the centers recently partici- And that’s the real value the quality information. difference is that we have propri- pated in a benchmarking survey network brings. “We’re here to “As the Internet grows, it etary internal ExxonMobil docu- of worldwide pipelines. accelerate development and can be difficult to find precisely ments and reports that aren’t “The company’s cross- support innovation,” McLennan what you’re looking for,” says available in external databases.” functional information special- adds. “We’re about enhanc- Rebecca Rucker, section head Besides providing access to ists provided us comprehensive, ing the agility of our various at the Downstream Technical leading industry books, journals globally sourced data to help our businesses, vetting information Information Center. “We have and periodicals, the centers engineers develop approaches to make sure that it’s accurate, the tools and expertise to sort subscribe to databases that pro- for mitigating pipeline risks,” says reliable and timely.”

28 Bass Strait at 50 Australian venture marks the 50th anniversary of the country’s first major offshore discovery well.

The historic Gippsland Basin joint venture completed its first discovery well 50 years ago, in February 1965. That well and the offshore facilities that followed have supported production of some 4 billion barrels of oil and 8 trillion cubic feet of gas. In the half century since the first discovery, investments of around $20 billion have funded 17 plat- forms, associated subsea produc- tion systems and other offshore installations feeding a network of about 370 miles of pipelines. Esso Australia operates the venture, in which Esso and BHP Billiton Petroleum (Bass Strait) Pty. Ltd. each have a 50 percent interest. Onshore, investments include the Longford complex, comprising three gas plants and a crude-oil stabilization plant in the state of Victoria that serves as the onshore receiving point for the venture’s Bass Strait production. Longford separate ethane, propane and 1,300-foot wharf accommodates has supplied most of Victoria’s gas butane product streams. Long a pedestal crane with a 110-ton requirements since 1969. It also Island Point also stores crude oil lifting capacity. Cargo shipments supplies gas to New South Wales, before distribution to refiner- from Barry Beach to the offshore Tasmania and other locations. ies in Australia and overseas. A platforms average about 70,000 jetty extending about 2,000 feet tons per year. Additional facilities offshore is equipped to load gas Richard Owen, Esso Australia About 115 miles west of liquids and oil onto ships. chairman, describes the Gippsland Longford, the Long Island Point The joint venture’s marine- Basin joint venture as one of the complex includes a fractionation support base is the Barry Beach most enduring partnerships in plant for separating gas liquids Marine Terminal about 60 miles Australia’s corporate history. processed at Longford into southwest of Longford. Its “The story of oil and gas

29 Story by Mike Long As Bass Strait in Australia marks a half century of production, Esso engineers and scientists continue to expand their understand- ing of the basin.

in Australia will always hinge Maximizing value infrastructure. For example, oil compression capacity on Marlin on Bass Strait,” he says. “Our Recent activity in the basin facilities on the West Tuna platform, B, enables greater production investments have been a critical includes the Kipper Tuna Turrum installed in 1996, have been con- efficiencies along with increased building block underpinning the (KTT) project, encompassing verted to produce additional gas volumes of oil and gas. Turrum economic growth of this nation. three fields in Bass Strait that hold from the Tuna field, which has pro- gas, which contains higher levels “At the peak of oil production an estimated 1.6 trillion cubic feet duced oil for more than 40 years. of carbon dioxide (CO2) than oth- in the early 1980s, the venture of gas, plus 110 million barrels of In the Turrum field (the project’s er Bass Strait fields, will continue was delivering 10 percent of total oil and gas liquids. largest), the nearby 47-year- to be reinjected back into the federal revenue. Today, it meets The KTT project reflects the old Marlin A platform has been reservoir until a gas-conditioning nearly 40 percent of Australia’s company’s focus on extracting connected to the new Marlin B plant comes online at Longford in East Coast gas demand.” maximum value from the invest- platform by bridge. The combina- 2016. Four more gas wells and an ment and Gippsland Basin field tion of platform facilities, including oil well were drilled this year.

30 The new Marlin B platform (right) has allowed the efficient production of the deep Turrum field, part of a three-field project holding an estimated 1.6 trillion cubic feet of gas and 110 million barrels of oil and natural-gas liquids.

Kipper energy and regulatory policies Standfield, Gippsland projects require offshore compression to The Kipper field, discovered in helped make the KTT project manager. “The largest gas field produce, which meant the instal- 1986, is a joint venture between economically feasible. in southeastern Australia, Marlin lation of another platform.” Esso Australia (operator, 32.5 “Credit must also go, however, sits atop Turrum, which is more Things began to look up for percent), BHP Billiton (32.5 to the decades-long efforts of than a mile below the seafloor. Turrum after the Bass Strait’s larg- percent) and Santos Ltd. (35 Esso and joint-venture scientists Marlin is also typical of the more est 3-D seismic survey in 2001. percent). Gas and gas liquids will and engineers to expand their attractive early Gippsland Basin “The survey allowed us to get be produced through subsea geoscientific understanding of fields, with its large reserves of a better picture of the reser- wells tied to the West Tuna the Gippsland Basin as well as cleaner gas, high-pressure reser- voirs,” Standfield says. “We later platform. Installed close to West their ongoing development and voirs and geology dominated by combined this information with Tuna, a smaller, unstaffed satellite application of new technology,” thick marine sands. data from an early-phase drilling platform called the Riser Access he says. “Turrum, however, was always program in which we drilled three Tower links to West Tuna via going to require significant oil wells and produced them back bridge and connects the Kipper Turrum’s time capital investment. In addition to to the Marlin A platform. This oil pipelines to West Tuna. A case in point is the Turrum field. its higher levels of CO2, Turrum’s production provided valuable data Owen notes that rising gas “Turrum was literally in the geology is much more complex. on the reservoir’s performance prices in southeastern Australia shadow of the Marlin field since And unlike the shallower fields, and characteristics, and helped us and supportive government its discovery in 1966,” says David its low reservoir pressure would develop some of the most sophis-

31 120 years of history In 1895, six years before the Federation of Australia, Vacuum Oil Company opened an office in Melbourne with a staff of three to sell mineral lubricants. On the first day of his first road trip as Vacuum’s first sales- man, David Clarke, an engineer from Yorkshire, England, sold his first barrel of Vacuum cylinder oil to the company’s first customer, Clarence United Gold Mining Company. Vacuum and its Mobil and ExxonMobil successors con- tinued to build on Clarke’s firsts over the next 120 years. Today, ExxonMobil in Australia has grown from that first sales office into a nationwide enterprise with investments of more than $20 billion. In powering Australia’s economy, it develops and pipes natural gas amounting to billions of cu- ticated reservoir modeling ever Moving 2,250 tons of rig equip- bic feet from the nation’s largest fields, produces and refines attempted in the Gippsland Basin. ment between platforms. millions of barrels of oil, and stores and transports millions Based on what we learned about Cooking and serving 300,000 of gallons of fuel products every year. the field, and with the value of meals to offshore workers. Undoubtedly, Clarke would be highly impressed. gas increasing in Australia’s East Delivering 74,000 tons of sup- Coast market, the venture moved plies and equipment. forward with a gas-development plan for Turrum.” Owen adds that it all comes down to one thing: “Our staff Safety excellence and contractors working to- While Esso Australia, on behalf gether to put safety at the center of its venture partners, has of everything we do.” reliably supplied energy to the country for almost half a century, Owen notes that their success has been underscored by an excellent safety record. “We are an industry safety leader in Australia,” he says. “In fact, Esso Australia won the Australian Petroleum Produc- tion and Exploration Association AUSTRALIA Safety Excellence Award in 2013 and 2014 for best oil and gas industry safety performance. For our Bass Strait operations in particular, we went more than 12 months during those two Tuna Seahorse Snapper West Kipper years without a recordable injury Moonfish Marlin B Tuna onshore or offshore.” Longford Marlin A Whiting Turrum Over that time, the workforce, Barracouta Flounder including both employees and Fortescue contractors, produced approxi- Halibut Tarwhine mately 200 billion cubic feet of Bream B Cobia Dolphin Mackerel gas, 15 million barrels of oil and Bream A Kingfish A 14 million barrels of gas liquids. Perch Blackback Achieving this involved: West Kingfish Kingfish B Moving more than 20,000 workers to and from offshore Production from the Kipper, Tuna, Marlin and other Esso-operated facilities in Australia’s platforms on 4,000 helicopter Bass Strait is transported by pipelines to the Longford complex in the state of Victoria. flights.

32 Panorama

In Baytown, Texas, ExxonMobil Chemical is constructing new facilities to expand the capacity to make Photo by Robert Seale the building blocks for plastics. John Cummings (left), construction safety advisor, and Guadalupe Varela, carpenter, review safety procedures in the construction area where furnaces will soon be installed.

Rotterdam hydrocracker expansion ExxonMobil will expand the hydrocracker unit at its Rotterdam refinery to upgrade heavier byproducts into cleaner, higher-value products, including base stocks and ultralow sulfur diesel, to meet growing global market demand. Construction on the project is scheduled to begin next year, with unit startup anticipated in 2018. “This investment demonstrates ExxonMobil’s long-term view and disciplined investment approach,” says Jerry Wascom, president of ExxonMobil Refining and Supply Company. The base stocks to be produced at Rotterdam are a part of ExxonMobil’s EHC product line, and are designed to help lubricant blenders achieve greater formulation flexibility and simplify global qualification testing. They also enable customers to cost-effectively blend a range of lubricants to meet evolving industry requirements. The refinery, operated by Esso Nederland BV, is one of the most energy- The Rotterdam hydrocracker will be expanded to upgrade efficient in Europe, and plays a key role in the region and the marketplace as a heavier byproducts into cleaner, higher-value finished products. manufacturer of low-sulfur petroleum products and chemical feedstocks.

33 Commitment to climate change research Exxon Mobil Corporation believes that climate change is a serious issue requiring research for solutions and effective policies that balance society’s need for energy and environmental protection. As such, company scien- The Lamp is published for ExxonMobil shareholders. Others may receive it on tists have been studying climate science for more than three decades. request. It is produced by the Public & Over the years, much of this research to improve the understanding of Government Affairs Department, Exxon climate science has been done in conjunction with government bodies and Mobil Corporation. leading research universities, and publicly available for several decades. Exxon Mobil Corporation has numerous affiliates, many with names that include Our scientists have contributed climate research and related policy analy- ExxonMobil, Exxon, Esso and Mobil. sis to more than 50 papers in peer-reviewed publications. They’ve partici- For convenience and simplicity in this publication, those terms and the terms pated in the United Nations Intergovernmental Panel on Climate Change corporation, company, our, we and its are since its inception in 1988, and were involved in the National Academy of sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, Sciences review of the third U.S. National Climate Assessment Report. ExxonMobil has business relationships ExxonMobil advocates policy options that ensure a uniform and pre- with thousands of customers, suppliers, governments and others. For convenience dictable cost of carbon; allow market prices to drive solutions; maximize and simplicity, words like venture, joint transparency; reduce administrative complexity; promote global participa- venture, partnership, co-venturer and partner are used to indicate business tion; and are easily adjusted to future developments in climate science relationships involving common activities and interests, and those words may or may not and policy impacts. Since 2009, ExxonMobil has supported a revenue- indicate precise legal relationships. neutral carbon tax as the most efficient and effective way for policymak- Trademark ownership: Exxon, Mobil, Mobil 1, ers to put a price on carbon emissions. EHC and the term Energy lives here are trademarks or service marks of Exxon Mobil Corporation or its affiliates.

Forward-looking statements: Outlooks, projections, estimates, targets and business plans in this publication are forward- Singapore investment looking statements. Actual future results, including demand growth and supply mix; ExxonMobil is expanding its operations in Jurong, ExxonMobil’s own production growth Singapore, to produce synthetic lubricants, including and mix; resource recoveries; project plans, timing, costs and capacities; capital Mobil 1, the company’s flagship synthetic engine oil. expenditures; revenue enhancements and The expansion further strengthens the company’s cost efficiencies; margins; and the impact of technology could differ materially due manufacturing capabilities and ability to meet the to a number of factors. These include growing demand for ExxonMobil synthetic products changes in long-term oil or gas prices or other market conditions affecting the in the Asia-Pacific region. oil, gas and petrochemical industries; When completed in the second half of 2017, the reservoir performance; timely completion of development projects; war and other facility will be one of six locations worldwide produc- political or security disturbances; changes in ing Mobil 1. law or government regulation; the outcome of commercial negotiations; the actions “Mobil 1 is ExxonMobil’s most advanced synthetic of competitors; unexpected technological engine oil,” says Bennett Hansen, ExxonMobil’s Asia- developments; the occurrence and duration of economic recessions; unforeseen Pacific lubricant sales director. “Adding Singapore to our technical difficulties; and other factors network of Mobil 1 manufacturing facilities will ensure discussed here and under the heading “Factors Affecting Future Results” in item 1 that customers’ needs are met well into the future.” of our most recent Form 10-K and on our Research partner website at exxonmobil.com. A new $1 million relationship between Frequently used terms: References to ExxonMobil and Michigan State University resources, the resource base, recoverable will expand research into the basic science resources, barrels and similar terms include required to advance algae-based fuels. The quantities of oil and gas that are not yet partnership seeks to improve the efficiency classified as proved reserves, but that we of photosynthesis in microalgae to produce believe will likely be moved into the proved reserves category and produced in the future. biofuels and bio-products. Discussions of reserves in this publication “We know certain types of algae produce generally exclude the effects of year-end bio-oils,” said Vijay Swarup, vice president price/cost revisions and include reserves of ExxonMobil Research and Engineering attributable to equity companies and our Company. “The challenge is to find and Syncrude operations. For definitions of and information regarding reserves, return develop algae that can produce bio-oils at on average capital employed, normalized scale on a cost-efficient basis.” earnings and other terms that may be used The goal will be to ultimately process in this publication, including information algae bio-oils in ExxonMobil refineries to required by SEC Regulation G, see the supplement crude oil as the raw material “frequently used terms” posted on our website. The most recent Financial and to manufacture gasoline, diesel, aviation Operating Review on our website also shows The additional capacity in Singapore will support fuels and marine fuels. The company is ExxonMobil’s net interest in specific projects. growing demand from automotive manufacturers also researching potential applications in and motorists. chemicals and lubricants. Photo by Jeff Cheng

34 Shareholders may elect to discontinue receiving The Lamp or change their shareholder account PRSRT STD address by contacting ExxonMobil at 1-972-444-1110. U.S. POSTAGE PAID Shareholders may access their account online at computershare.com/exxonmobil. ExxonMobil ExxonMobil Shareholder Services P.O. Box 30170 College Station, TX 77842-3170 © 2015 by Exxon Mobil Corporation exxonmobil.com

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