Exxon to start production at ten projects this year

Exxon Mobil expects to start production at 10 major projects in 2014, adding new capacity of approximately 300,000 boed net and contributing to profitable production growth, according to Rex W. Tillerson, the company’s chairman and CEO.

“These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes,” Tillerson said at the company’s annual investment analyst meeting at the New York Stock Exchange.

Exxon’s capital spending will decline to $39.8 billion this year from a peak of $42.5 billion in 2013, Tillerson said. Excluding potential acquisitions, capital expenditures are expected to average less than $37 billion per year from 2015 to 2017.

A LNG project in Papua New Guinea and the largest offshore oil and gas platform in Russia are among significant projects scheduled for startup this year. Others include a heavy-oil expansion project in Canada and deepwater projects in the Gulf of Mexico.

Exxon anticipates additional project startups in the next few years in several countries, including Australia, Indonesia, Canada, Nigeria and the U.S. All of these projects are expected to add about 1 MMboed net by 2017. In North America, Exxon’s near-term production outlook is made up of significant high-margin, low-risk liquids growth.

The company is pursuing more than 120 projects to develop about 24 billion boe.

In 2013, the company added proved oil and gas reserves totaling 1.6 billion boe, including a 153% replacement ratio for crude oil and other liquids. At year-end 2013, proved reserves totaled 25.2 billion boe, comprised of 53% liquids and 47% natural gas.

Liquids production is expected to grow 2% in 2014 and 4% annually from 2015 to 2017, representing the majority of the company’s total production increase. Liquids and liquids linked natural gas are projected to account for 69% of the company’s total production by 2017.

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