XOM Exxon Mobil Corp

Exxon Mobil Corporation (NYSE:XOM) announced today that its subsidiary, Esso Exploration Angola (Block 15) Limited, has started production of the $3.5 billion Kizomba B project, designed to develop 1 billion barrels of oil from the Kissanje and Dikanza fields in approximately 3,280 feet (1,000 meters) of water more than 200 miles (322 kilometers) off the coast of Angola. The massive Kizomba B project, which includes the deployment of the world's largest FPSO (Floating Production, Storage, and Offloading vessel) with a storage capacity of 2.2 million oil barrels, has come on stream more than five months ahead of schedule. To accomplish this milestone, ExxonMobil incorporated its unique "design one, build multiple" approach that captured learnings and synergies from the Kizomba A project, a virtually identical development that began production on Block 15 (Hungo and Chocalho fields) less than one year ago. With combined estimated recoverable resources of 2 billion barrels of oil, Kizomba A and Kizomba B, along with the Xikomba project that began producing in 2003, are expected to reach a peak output of more than 550,000 barrels of oil a day by year-end. "Kizomba A and B are benchmark projects that have set world-record cycle times with the lowest unit development costs for projects of this size and complexity," said Rex Tillerson, president of Exxon Mobil Corporation. "Kizomba A was brought on line in a record 36 months, and Kizomba B has beat that record by achieving startup in only 31 months. These projects, which are the largest of their kind offshore Africa, employ leading-edge deepwater technology to develop significant new oil production capacity and demonstrate our commitment to the long-term development of Angola's hydrocarbon and human resources." Like Kizomba A, the Kizomba B project encompassed a contracting and construction effort that spanned four continents and involved activities in more than a dozen nations. More than $1 billion has been spent on local Angolan goods and services including contracts for in-country fabrication, logistics support, training, and development of Angolan personnel. These contracts have resulted in sustained growth for Angolan capacity and expertise to support future oil and gas developments. ExxonMobil and its co-venturers have announced 38 discoveries in Angola, seventeen of which are on Block 15, a world-class development with the potential to recover about 4.5 billion oil-equivalent barrels (gross). ExxonMobil holds interests in five offshore deepwater blocks covering more than 4.5 million gross acres with a resource base now estimated at nearly 12 billion oil-equivalent barrels (gross). In deepwater areas offshore Africa, ExxonMobil holds interests in 19 blocks totaling nearly 21 million gross acres. Fourteen deepwater exploration wells were completed offshore West Africa during 2004, adding about 340 million barrels (net) to the company's resource base. ExxonMobil has production operations in Angola, Chad, Cameroon, Equatorial Guinea and Nigeria. Exploration and development activities continue in Angola, Chad, Cameroon, Equatorial Guinea, Niger, Nigeria, Madagascar, Senegal, Guinea Bissau, and the Republic of Congo. The company is also pursuing LNG opportunities in Angola and Nigeria. In addition to Esso (operator, 40 percent), other participants in Block 15 are BP Exploration (Angola) Limited (26.67 percent), ENI Angola Exploration B.V. (20 percent) and Statoil Angola (13.33 percent). Sonangol is the Concessionaire. CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including resource recoveries, capacities and production rates, efficiency gains, and project plans, schedules, and costs, could differ materially due to changes in long-term oil and gas price levels or other market conditions affecting the oil and gas industry; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; the outcome of commercial negotiations; and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com). References to barrels of oil, recoverable resources, the resource base, and expected development or recovery amounts include quantities of oil and gas that are not yet classified as proved reserves but that we believe will be produced in the future.