ExxonMobil Begins Construction on Kizomba B Development

ExxonMobil Corporation announced that its subsidiary, Esso Exploration Angola (Block 15) Limited (Esso), has started construction of another deepwater development offshore West Africa. The $3 billion world-class Kizomba B project in Angola's Block 15 is expected to recover nearly 1 billion barrels of oil at a target production rate of 250,000 barrels per day.

Kizomba B will develop the Kissanje and Dikanza discoveries in water depths of 3,300-3,400 feet. The project will include the combination of a surface wellhead platform and subsea wells tied back to a Floating Production, Storage, and Offloading (FPSO) vessel. The FPSO will have 2.2 million-barrel storage capacity. First oil is expected by early 2006.

Commenting on the announcement, Morris Foster, president, ExxonMobil Development Company, said, "The start of construction activities for Kizomba B represents another 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 highlight 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."

Esso has awarded facilities construction and fabrication contracts valued at approximately $2 billion for key onshore and offshore components of Kizomba B. The project will contribute substantial direct and indirect benefits to the Angolan economy through local project spending and employment.

An estimated 400 Esso operational personnel will be required for the Kizomba development projects, the majority of whom are expected to be Angolan nationals. A significant training program is underway to develop and prepare the national work force to support the new operations. Local jobs also will be created in the Angolan port cities of Soyo and Lobito to support construction and fabrication contracts. Furthermore, Esso's Kizomba development activities will create significant employment opportunities for Angolan workers in multiple sectors of the economy, including transportation, logistics, maintenance and food services.

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 16 blocks totaling 14 million gross acres. In Angola, Esso holds interests in seven offshore deepwater blocks covering 8.4 million gross acres.

In 2001, the company started construction on the Kizomba A deepwater development on Angola Block 15. Kizomba A is expected to recover approximately one billion barrels of oil from the Hungo and Chocalho fields, at a target production rate of 250,000 barrels per day. First oil from Kizomba A is scheduled for late 2004.

In June 2002, Esso announced that it had begun construction of the Xikomba deepwater development on Block 15. Xikomba is expected to recover approximately 100 million barrels of oil with a target production rate of 80,000 barrels per day. First oil from Xikomba is scheduled for late 2003, making it the first oil production on Esso-operated Block 15.

In addition to Esso (Operator, 40 percent), other participants in Block 15 are BP Exploration (Angola) Limited (26.67 percent), Agip Angola Exploration B.V. (20 percent) and Statoil Angola Block 15 AS (13.33 percent). Sonangol is the concessionaire.