XOM Exxon Mobil Corp

ExxonMobil Middle East Gas Marketing Limited, a wholly owned subsidiary of Exxon Mobil Corporation (NYSE:XOM), the State of Qatar and Qatar Petroleum today announced the signing of a development plan and the launch of the Al Khaleej Gas-Phase Two (AKG-2) project. This follows the completion of the initial stage of the project, AKG-1, which started up in November 2005. When operational in 2009, AKG-2 is planned to produce 1,580 million cubic feet per day (mcfd) of North Field natural gas for processing to sales gas for domestic markets in Qatar, while recovering associated condensate and natural-gas liquids. AKG-2 is expected to produce annually about 1,250 mcfd of sales gas, about 15 million barrels of field condensate, about 1 million tons of natural gas liquids (propane, butane and plant condensate) and an estimated 870,000 tons a year of ethane for use as petrochemical feedstock. Al-Khaleej Gas is being developed concurrent with the Ras Laffan LNG Expansion Project to maximize synergies between the Ras Laffan Liquefied Natural Gas Company Limited (3) and AKG-2 projects. Total investment for AKG-2 is expected to be more than $3 billion. To commemorate the launch, a ceremony was held today in Doha attended by H.E. Abdullah bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and Industry and Chairman of Qatar Petroleum; Mr. Mike Fry, Vice President of ExxonMobil Development Company; Mr. Wayne Harms, President of ExxonMobil Middle East Gas Marketing Limited and ExxonMobil Qatar Inc.; and other officials and diplomats. Commenting on this milestone development, H.E. Minister Al- Attiyah said, "Approval of the Subsequent Development Plan and the launching of AKG-2 today reflect another major achievement toward meeting the increased domestic demand for natural gas. This project represents another important step under the ambitious vision of His Highness the Emir, Sheikh Hamad Bin Khalifa Al-Thani, that aims to ensure the optimal utilization of the country's hydrocarbon resources." Mr. Fry said, "ExxonMobil is extremely proud of our partnership with Qatar Petroleum. We appreciate the confidence and trust placed in ExxonMobil to supply domestic gas demand. We extend our thanks to all parties involved in the conclusion of this major milestone." The AKG-2 development will involve the construction of both offshore and onshore facilities including two wellhead platforms, gas treating and liquids recovery facilities and fractionation operations. The onshore components will be constructed adjacent to other RasGas facilities in Ras Laffan Industrial City. Phase One of Al Khaleej Gas (AKG 1), with a capacity of 750 mcfd pipeline sales gas, began production in November 2005. CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including project plans, schedules, and costs and production rates, 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; the outcome of commercial negotiations; reservoir performance; timely completion of development projects; technical or operating factors; and other factors discussed under the heading "Factors Affecting Future Results" in the Investor Information section of our website (www.exxonmobil.com) and in Item 1A of our most recent Form 10-K. References to quantities of gas, condensate, and gas liquids include amounts that are not yet classified as proved reserves but that we believe will be produced in the future.