partnering with ExxonMobil

Transcription

1 partnering with ExxonMobil

2 World s largest LNG trains Qatar 2

3 partnership benefits ExxonMobil has a successful history of working with governments and partners around the world to maximize the value of hydrocarbon resources. By bringing together experienced people, proprietary technology, superior operations and project management capability, we deliver on our pledge of performance. We achieve this project success while maintaining an unwavering focus on safety and protecting the environment. we are committed to making a positive and lasting contribution to every community where we operate But we also know that making the most of energy development is about more than oil and gas production it is also about developing people and creating and delivering sustainable, long-term benefits for local suppliers and communities. ExxonMobil has a proven record of job creation, outstanding training and career development for our national staffs, and support for local industry. Cover photo: Offshore drilling Gulf of Mexico, United States 3

4 proven project execution Partners share in our global experience by working with specialized project managers with expertise in delivering projects of all sizes on time, on budget and with unparalleled safety results. The challenge of bringing new energy supplies to market is increasing, which plays to ExxonMobil s strengths. The experience of our project management professionals, developed through work on a wide variety of global projects, provides ExxonMobil with the capacity to execute today s large oil and gas projects effectively. Consistent, proven project management processes and tools are used by every development team and enable us to reduce risk and achieve the best possible results. For example, our ExxonMobil Capital Project System ensures that the best in-house expertise is identified and engaged, and provides planning and tracking tools for the life of the project. Our strategies place significant emphasis on managing and optimizing base performance and continuously generating opportunities to maximize the value of our assets. High-quality reservoir management and rigorous depletion planning ensures optimum long-term performance from each of our fields and enhances production from existing wells. We continually invest in our existing asset base to enhance resource recovery, maximize profitability and extend field life. New production volumes are generated through workovers, drilling new wells and implementing secondary or tertiary recovery projects to access and develop resources not captured during the initial field development. Project Execution Performance Actual Facilities Cost Actual Schedule Projected Cost and Schedule Our global organization also means that lessons learned and best practices are systematically captured and shared around the world. For example, solutions pioneered for large projects such as the Kizomba developments in Angola can deliver future savings and lessons learned to projects elsewhere. We have significant experience in the most sensitive and difficult environments, and have successfully and creatively overcome challenges to succeed in conditions ranging from the harsh Arctic environment of Russia s Sakhalin Island to the savannas of Chad. With a focus on innovative solutions and application of technology, we have achieved industry-leading performance and delivery of projects on time and on budget, while effectively protecting these sensitive environments. In fact, over the past five years, the average facilities cost and schedule of 44 ExxonMobil-operated projects came within five percent of the level projected at funding. We are also implementing projects that increase capacity, improve yields of higher-value products, meet new product quality requirements, and further enhance our safety and environmental performance. To meet the growing demand for products in Asia, for example, ExxonMobil is progressing the development of integrated refining, chemical and fuels marketing ventures in China, and a second world-scale petrochemical plant in Singapore. Our sustained investment in technology brings lower costs and higher reliability through innovative solutions to the complex energy challenges ExxonMobil and our partners face today. 4

5 ExxonMobil, the world s largest publicly traded company, is a master of project management, consistently delivering big projects within budget and on time. Financial Times November 2, 2005 Yastreb, the world s largest and most powerful land-based drilling rig Sakhalin Island, Russia 5

6 technology leadership Technological innovation continues to differentiate ExxonMobil from our competition. We maintain one of the industry s largest research and development efforts, with about $3.5 billion invested in research over the past five years. We employ more than 15,000 scientists and engineers, and our commitment to proprietary technology has resulted in the discovery of next-generation and breakthrough technologies. we have a proven history of technological breakthroughs and successes For example, we have been at the leading-edge of Liquefied Natural Gas (LNG) projects for more than 35 years. Growing demand for natural gas and step-out technology developments have enabled LNG to be a growing part of today s energy supply. Our experience includes ventures with Qatar Petroleum that involve construction of four of the world s largest liquefication trains ( 7.8 MTA each). These trains will be supported by a fleet of LNG ships with capacities up to 80 percent greater than their predecessors. The ventures are also developing LNG regasification terminals in the United Kingdom, Italy and United States. This integrated approach improves the economies of scale of LNG production and shipping, and not only extends the reach and competitiveness of Qatar LNG for ExxonMobil and our partner, Qatar Petroleum, but also brings higher realizations to our partners and more energy supplies to the world market. We also have extensive technological and operational experience with tight gas, which ensures the effective development of these challenging resources around the world. Enormous quantities of natural gas are locked in tight reservoirs that are characterized by low permeability. For example, in the Piceance Basin, Colorado, we employ our patented Multi-Zone Stimulation Technology (MZST ) to improve the speed, accuracy and cost-effectiveness of completions. Compared to conventional approaches, MZST provides a material improvement in our ability to produce the gas. In addition, ExxonMobil is at the forefront of Arctic technology, and is uniquely qualified to take on the challenges of resource opportunities in this difficult environment. The Arctic is a large, lightly explored region with significant hydrocarbon potential. Our experience in this area began in Canada in the 1920s and since then, we have produced almost 3.5 billion oil-equivalent barrels from Arctic fields. Our most recent experience includes the successful operation of the Sakhalin-1 project in Russia, which involved using the world s largest and most powerful land rig to drill world-record setting, extendedreach wells. 6 Piceance Basin Colorado, United States

7 Our Remote Reservoir Resistivity Mapping (R 3 M) technology is an example of a breakthrough in remotely detecting and imaging hydrocarbon reservoirs beneath the ocean. This technology is the product of research begun more than 20 years ago, and has been used to enhance exploration off the coasts of West Africa and Colombia, as well as in the Gulf of Mexico. ExxonMobil technology maximizes hydrocarbon recovery with applications such as the industry s only next-generation reservoir simulator, EM power. Proprietary computer modeling produces exceptionally detailed three-dimensional reservoir descriptions and effective reservoir depletion plans. Faster drilling rates and reduced downtime are the result of a breakthrough process we developed. Our Fast Drill Process (FDP) significantly improves drilling rate of penetration and is an example of our ability to connect science and technology with real world challenges. We also create optimal well designs with our proprietary drilling and completions design software, called ToolPro. Our record of no deepwater well completion failures anywhere in the world in the past five years is unmatched in industry. Our leading position in enhanced oil recovery (EOR) stems from our extensive research and development commitment, operational capabilities and worldwide field experience. For 35 years, ExxonMobil has maintained one of the largest EOR research programs in the industry, developing new gas injection, chemical and thermal recovery methods. This successful approach has led to our current involvement in a number of gas injection EOR projects and our operatorship of the world s largest thermal bitumen recovery project. Access to technology and expertise delivers practical benefits to our partners. In-house expertise means that when new problems occur, we can focus our resources to solve them quickly and economically. 7

8 by sharing best practices and procedures with our partners and contractors, we help to improve industry safety performance wherever we operate Wakayama Refinery Japan Western Gray Whale 8

9 safe, environmentally sound operations ExxonMobil has an unwavering commitment to operations safety and integrity, which is embedded in our company culture and implemented globally through our management systems. We operate to the highest industry standards in all aspects of our business. We meet our commitments and set industry benchmarks in the process. Safety is our highest priority. We take a disciplined and systematic approach to prevent accidents. We are proud of our industry-leading performance in this area. By sharing best practices and procedures with our partners and contractors, we help improve industry safety performance wherever we operate. We are committed to operating responsibly everywhere we do business. It is our longstanding policy to conduct business in a manner that considers both the environmental and economic needs of the communities in which we operate. We seek to drive all incidents to zero and to operate in a manner that is not harmful to the environment. We are committed to the prevention and elimination of spills from our operations, and our record in this area is among the best in the industry with our marine transportation environmental performance serving as the industry pacesetter. our performance demonstrates our steadfast commitment to high standards of safety, security, health and environmental care A process called Environmental Business Planning (EBP) integrates environmental improvement into business plans. Our EBP process identifies key environmental drivers, sets objectives in key focus areas, and establishes strategies and actions to meet these objectives. We have effectively utilized our EBP processes to analyze spill causation, set reduction targets and integrate improvements to operating procedures and facilities into business plans. We consistently utilize proven technology, in addition to developing new innovations, in an effort to increase the energy efficiency of our operations. ExxonMobil is an industry leader in the use of cogeneration, a much more efficient way to make power and steam. With projects planned and under construction in Belgium, China and Singapore, we expect to increase our interest in cogeneration by about 20 percent to more than 5,000 megawatts by We continue to find innovation opportunities in cogeneration applications. For example, our cogeneration project in Antwerp, Belgium, will have the ability to directly integrate heat with the refinery production process, a development that will make it unique in the industry for a large-scale project. ExxonMobil recognizes the importance of conserving biodiversity in the areas where we operate. Because our business spans the globe, we face the challenge of operating in a variety of ecosystems with sensitive characteristics. To address this challenge, we work under the industry s highest standards of environmental management. ExxonMobil uses a detailed risk assessment process to conduct environmental impact assessments in a comprehensive and consistent manner for both new developments and existing operations. ExxonMobil supports programs that build the capacity of local communities to maintain and protect their natural environment. We use global systems to provide a rigorous and systematic framework for managing safety, security, health and the environment. Our Operations Integrity Management System is comprised of 11 elements, each with clearly defined expectations that every operation must fulfill. These elements address all aspects of safety, security, health and environmental management, from new project inception to ongoing operations. It helps ensure that every operating organization has the resources, skills, systems, procedures and tools to perform safely, reliably and with environmental care. 9

10 Drilling at Jerneh Field Offshore Peninsular Malaysia 10

11 Successful partnerships across the globe have been critical to our strong business results throughout the years and made significant contributions to local communities, businesses and governments. We deeply value these relationships and the critical role they play in enabling the sharing of technology, exper tise, people and products. Rex W. Tillerson Chairman and CEO 11

12 building capacity and developing communities Throughout our history, we have had a tradition of contributing to the communities and economies in which we operate. In addition to revenues and taxes generated by our operations, we contribute through employment and training of national citizens, building local capacity, utilizing local suppliers, contractors and vendors, and supporting community initiatives. ExxonMobil is committed to creating a positive and lasting social impact by developing successful partnerships built on mutual trust and respect. Ultimately, raising the standard of living and the stability of the communities in which we live and do business promotes our long-term success. We also partner with host governments and with local, national and international organizations to support a wide range of programs and projects that stimulate economic development and improve the quality of life for those in our neighboring communities. Because understanding and respecting local customs and sensitivities is critical, we meet regularly with community leaders and associations to share information and better understand and address local issues. Employee volunteers work alongside members of local communities and leverage corporate grants to support local programs. national workforce development Much of our work in the area of community and capacity development falls under our National Content development initiative, which includes three key components: Workforce Development, Supplier Development and Strategic Community Investments. We are committed to hiring and developing employees from the communities in which we operate. Annually, we hire approximately 3,700 professionals, nearly threequarters from outside the United States. National employees are trained for operational and leadership roles in their home countries and around the world. ExxonMobil s Malaysian affiliate, for example, takes pride in providing development opportunities abroad for employees with more than 100 Malaysians currently working internationally, many of whom will return to positions of increased responsibility. Ninety-eight percent of ExxonMobil s in-country workforce is Malaysian, a direct result of our focused efforts to employ locally. 12

13 Our commitment to training extends beyond direct ExxonMobil employees. In some cases, personnel from national oil companies work in our offices and participate in technology workshops and training programs. Our Upstream Technical Training Center in Houston, Texas, is a world-class facility. Annually, nearly 10,000 participants from around the world receive technical training. Training is an important component of our operations everywhere, and we develop tailored training programs for partners, contractors and employees. For example, we constructed a training facility in Chad to train operations technicians. We have established an ExxonMobil Technology Center in Abu Dhabi, United Arab Emirates, to apply the industry s most advanced technology to Upper Zakum in the areas of reservoir management, well management and production operations. The ExxonMobil Technology Center provides Emiratis the opportunity to work with ExxonMobil proprietary tools and technology, participate in advanced technical training and collaborate with ExxonMobil experts all over the world via advanced data links. In support of Qatar s vision to grow its knowledge economy, ExxonMobil is establishing a research center at the Qatar Science and Technology Park in Doha. Planned activities for ExxonMobil Research Qatar include addressing challenges associated with the growth of Qatar s gas industry, collaboration with academic and research institutions, and technology transfer through consulting and training. supplier development Professional New Hires by Region approximately 3,700 annually One of the cornerstones of our National Content initiative is the development of local contractors, suppliers and vendors. As such, we optimize procurement of goods and services from qualified and competitive local suppliers. The Chad-Cameroon pipeline construction project, for example, spent more than $1.5 billion with more than 2,000 local businesses. In addition, Esso Angola is jointly financing a center to increase the competitiveness of Angolan companies, providing legal and technical advice and fostering business contacts. Working with a technical college in Sakhalin, Russia, we established an international-standard welding class to develop specialized skills for local contractors. Canada U.S. Latin America Africa / Middle East Europe Asia / Pacific 13

14 building capacity and developing communities developing strong communities We become an active part of the communities where we operate and strive to contribute in a sustainable way to local economic progress. We do this by making strategic community investments in health and education programs, as well as supporting the development of infrastructure such as schools and health clinics. Africa Health Initiative ExxonMobil believes that improving health in Africa is a necessary foundation for economic growth and development, and is critical to helping achieve the company s business objectives as well. We established our Africa Health Initiative in 2000 to work with local and international partners, and develop effective strategies to prevent, control and treat malaria and improve the health of people in the areas of our operations. Many of these projects have application across the African continent. We support programs that build health care capacity at the community level, promote research and development of new drugs and vaccines, and advocate awareness and support. Over the past decade, we have invested more than $120 million in community development programs and projects across Africa. improving education It is our long-standing belief that education is fundamental to development and economic growth, and enables progress across the globe. We continue to support a wide range and growing number of education projects through our Educating Women & Girls Initiative. This initiative, launched in 2005, funds projects that construct and rehabilitate schools and make them safer; provide teacher education and training; offer adult literacy and vocational education for girls and women; develop entrepreneurial and business skills training; and improve community leadership. 14

15 In Nigeria, we are partners in a project that will benefit as many as 2,000 teenage girls who are at risk of dropping out of school. The curriculum is designed to help participants build self-confidence and work toward their goals by teaching them life skills such as decision making and resisting negative peer pressure, as well as general health, nutrition and hygiene. In Qatar, we are helping underprivileged women ages 19 to 35 work through social, cultural and ethical issues that discourage them from entering the workforce. The program also assists them in finding careers that meet their needs and abilities, and ultimately, allows them to be self-sufficient. it is our long-standing belief that education is fundamental to development and economic growth, and enables progress across the globe 15

16 financing and business support ExxonMobil s reputation and record of project execution improves lenders perceptions of project risk and often results in our partners enjoying access to capital at superior rates. We help our partners find optimal financing terms at the lowest possible cost and have an extensive track record of successfully placing financing for major projects. By leveraging our experience and relationships with financial institutions, we can help structure a unique deal that will meet sponsors objectives. Innovative financing for our projects with partners in Qatar and Nigeria have won international recognition and awards. Our disciplined approach to management reduces risk and lowers costs for project participants. ExxonMobil brings the benefits of established business management and support systems and experienced support staff to all its partnerships. Our functional organization speeds the sharing of ideas, technology and best practices globally, and smarter, lower-cost processes deliver the the best value throughout the asset life cycle. Financial capability, investment discipline and a commitment to the long term make ExxonMobil an ideal partner... UBS Investment Research October 5,

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18 global experience

19 applying technology and expertise around the world 1. Piceance Basin, Colorado, United States Breakthrough drilling and completion technologies to increase production in tight gas sand reservoirs 2. Cold Lake, Canada Patented steam injection technologies optimize heavy oil recovery 3. Hoover Diana, Gulf of Mexico, United States Deepwater drilling and production platform sets world record Hibernia, Offshore Canada Gravity-based structure operates in iceberg environment Beryl, Offshore United Kingdom Enhanced oil recovery using four-dimensional seismic 6. Antwerp Refinery, Belgium Cogeneration improves energy efficiency and reduces emissions 7. Adriatic Terminal, Offshore Italy Developing world s first offshore LNG terminal Doba Basin, Chad / Cameroon 665-mile (1,070 kilometers) pipeline makes landlocked oil available to world markets 9. Kizomba Developments, Offshore Angola World s largest floating production, storage and offloading vessels 10. Qatargas II and RasGas LNG Trains, Qatar World s largest LNG trains 11. Sakhalin-1, Sakhalin Island, Russia Record-breaking extended-reach drilling Wakayama Refinery, Japan SCANfining technology produces low-sulfur mogas 13. Fujian Venture, China Fully integrated petrochemicals and refinery expansion under construction 14. Malaysian Gas Fields, Offshore Peninsular Malaysia Satellite platforms maximize mature field production 15. Singapore Refinery, Singapore World-class integrated refining and petrochemicals site 16. Bass Strait, Offshore Australia Advanced seismic identified new opportunities in mature basin 19

20 exxonmobil.com 5959 Las Colinas Boulevard Irving, Texas Printed entirely on recycled paper. 05/2008