ExxonMobil adds 2.7 billion bbl to reserves in 2017
ExxonMobil Corp. has added 2.7 billion boe of proved oil and gas reserves in 2017, replacing 183% of production. ExxonMobil’s proved reserves totaled 21.2 billion boe at yearend 2017. Liquids represented 57% of the reserves, up from 53% in 2016. ExxonMobil’s reserves life at current production rates is 14 years.
Exploration and acquisitions made during a period of low commodity prices “are adding high-quality resources that are among the lowest cost of supply in the industry,” said ExxonMobil Chairman and Chief Executive Officer Darren W. Woods.
During 2017, proved additions at Upper Zakum in Abu Dhabi totaled more than 800 million bbl of crude oil. Additions from US unconventional plays, mainly in the Permian basin, totaled 800 million boe.
Other proved reserves additions were made in Guyana and in Mozambique.
Offshore Guyana, ExxonMobil discovered recoverable resources, including current proved reserves and additional resources, estimated to be 3.2 billion gross boe prior to the 2018 Ranger discovery (OGJ Online, Jan. 5, 2017). Production from Liza Phase 1 is expected to begin by 2020. In Mozambique, ExxonMobil acquired a 25% indirect interest in Area 4, which contains an estimated 85 gross tcf of natural gas in-place.
As a result of higher prices in 2017 relative to 2016, about 900 million boe in North America qualified as proved reserves under SEC guidelines due primarily to the extension of the projected economic end-of-field life.
Resource base
ExxonMobil added 9.8 billion boe to its resource base in 2017 through exploration discoveries and acquisitions—the largest addition to the resource base since the acquisition of XTO Energy in 2010.
Through its acquisition of Bass family entities in 2017, ExxonMobil added resource in the Permian basin, with upside potential in multiple prospective horizons (OGJ Online, Jan. 17, 2017).
Resource additions were also made in deepwater Brazil presalt with the acquisition of interest in the 2 billion boe (gross) Carcara field, onshore Papua New Guinea with the acquisition of InterOil Corp. and Mozambique with the purchase of an interest in Area 4 (OGJ Online, Feb. 17, 2017),.
Three discoveries offshore Guyana in 2017contributed to resource additions. Additional exploration drilling in Guyana is planned in 2018 on the 11.5 million gross acres currently held offshore (OGJ Online, Oct. 5, 2017).
ExxonMobil’s resource base totaled 97 billion boe at year-end 2017, taking into account field revisions, production and asset sales.
