ExxonMobil Begins Construction of Kizomba A Offshore Angola

ExxonMobil Corporation announced that its subsidiary, Esso Exploration Angola (Block 15) Limited (Esso), has started construction of the largest deepwater development offshore West Africa.

The $3 billion world-class Kizomba A project in Angola's Block 15 has recoverable resources of approximately one billion barrels of oil and target production of 250,000 barrels per day.

Kizomba A will develop the Hungo and Chocalho discoveries in water depths of 3,300-4,200 feet. The project will include the combination of a surface wellhead platform and subsea production system tied back to what will be the world's largest Floating Production, Storage, and Offloading (FPSO) vessel. The FPSO will have 2.2 million-barrel storage capacity. First oil is scheduled for late 2004.

Commenting on the announcement, Morris Foster, President, ExxonMobil Development Company, said, "The start of construction activities for Kizomba A represents an important milestone for Esso in West Africa. This and other developments being planned for Block 15 will provide significant additions to our liquids production in the coming years and highlights the growing importance of Angola to global energy supplies. As an industry leader in deepwater development, ExxonMobil will use its worldwide experience and leading edge technological capabilities to develop Kizomba in a safe, environmentally sound and cost effective manner."

ExxonMobil has a leading position in nearly all the major exploration and production areas in the world. The company is also a leading holder of deepwater acreage in the world's most attractive deepwater regions, including West Africa where it has interests in 19 blocks totaling 18 million gross acres. In Angola, Esso holds interests in nine offshore deepwater blocks covering 11 million gross acres with a recoverable resource potential of more than 7.5 billion oil-equivalent barrels from its 22 announced discoveries. Block 15's recoverable resource potential is in excess of 3.5 billion oil-equivalent barrels and development planning is underway for additional similar sized projects to Kizomba A.

Esso has awarded facilities construction and fabrication contracts valued at $2 billion for key onshore and offshore components of Kizomba A. The project will contribute substantial direct and indirect benefits to the Angolan economy through local project spending and employment. A majority of the estimated 300 Esso operational personnel required for Kizomba A are expected to be Angolan nationals. Approximately 400 local jobs will be created in the Angolan port cities of Soyo and Lobito to support construction and fabrication contracts.

Angolan contractors and workers will also perform most of the work associated with contracts for office building and housing construction projects. Furthermore, Esso's Kizomba A activities will create significant employment opportunities for Angolan workers in sectors including transportation, logistics, maintenance and food services.

Esso is the operator with 40 percent, other participants in Block 15 are BP Exploration (Angola) Limited with 26.67 percent, Agip Exploration Angola B.V. with 20 percent and Statoil with the remaining 13.33 percent. Sonangol is the concessionaire.