Esso Sells Non-Operated Central Australian Assets

Esso Australia Resources Pty Ltd, a subsidiary of Exxon Mobil Corporation, has reached agreement to sell its affiliate, Delhi Petroleum Pty Ltd., to Gradav Limited.

Formerly a wholly-owned subsidiary of Esso, Delhi Petroleum held non-operating interests of approximately 21 percent in oil and gas production and exploration assets in the Cooper-Eromanga basin of South Australia and Queensland. Terms of the agreement were not disclosed. In 2003, Delhi Petroleum average production was approximately 27 thousand oil equivalent barrels per day.

"The sale of Delhi is part of a continuing review of our investments and deployment of capital," said Esso Australia Chairman Robert Olsen. "ExxonMobil’s focus in Australia, as it is around the world, is on high value assets with development or growth potential. These types of assets are suited to our technical and financial capabilities and strategic priorities."

ExxonMobil is the world's leading non-government producer of oil and gas and has a significant portfolio of upstream assets in Australia. Over the past five years, ExxonMobil and its subsidiaries have invested more than A$2.5 billion in Australia.

"In Western Australia our interests in Gorgon and Jansz offer significant investment and development potential," stated Olsen. "We also believe there is significant potential for further development of our Bass Strait operations, and for capturing additional opportunities in the gas markets in south-eastern Australia."

ExxonMobil, through its Esso and Mobil subsidiaries, is one of the largest oil and gas production and exploration, and downstream operators in Australia. ExxonMobil is the second largest interest holder in the North West Shelf discovered undeveloped resource base with approximately 15 percent interest in the Gorgon field, and a 50 percent interest in the Jansz field.