ExxonMobil Announces Production Startup at Kearl Oil Sands Project
Initial phase to produce 110,000 barrels per day; expansion project to
double production capacity by late 2015
Long-term production will access 4.6 billion barrels of resource over
40 years
First oil sands mining operation without an upgrader
Lifecycle carbon dioxide emissions similar to those of many other
crude oils currently processed in the U.S.
Exxon
Mobil Corporation (NYSE:XOM) announced today the startup of the
Kearl oil sands project in Alberta, Canada, which incorporates
technological innovations to enhance environmental performance while
enabling long-term production to meet future energy demand.
'Kearl will access 4.6 billion barrels of resource that will meet energy
needs for the next 40 years,? said Neil Duffin, president of ExxonMobil
Development Company.
'By combining a high-quality resource with our proprietary technologies,
proven project execution capability and operational excellence, Kearl
will provide attractive returns over the long term with a smaller
environmental footprint than traditional oil sands mining,? he said.
Kearl is the first oil sands mining operation without an upgrader,
making lifecycle carbon dioxide emissions for its output similar to
those of many other crude oils processed in the United States.
Kearl uses proprietary paraffinic froth treatment technology to produce
bitumen, a process that does not require on-site upgrading and avoids a
multi-billion dollar capital investment and associated operating
expenses. This means the bitumen is processed once, instead of twice,
which reduces the amount of emissions generated overall.
Energy needs will be further reduced through the installation of
energy-saving cogeneration facilities.
Production of mined diluted bitumen from the first of three froth
treatment trains has begun. Startup of two additional bitumen froth
trains will proceed in sequence as planned, bringing production from the
initial development to an expected 110,000 barrels per day later in 2013.
An expansion project has been fully funded and will bring on an
additional 110,000 barrels of bitumen production capacity per day by
late 2015 using ExxonMobil′s successful Design One Build Many
approach, enabling 90 percent of initial development engineering to be
reused. Future debottlenecking plans will be based on actual operating
experience and result in Kearl reaching its ultimate production capacity
of approximately 345,000 barrels per day by about 2020.
Other environmental innovations include on-site water storage to
eliminate river withdrawals in low-flow periods, progressive land
reclamation, earlier tailings reclamation than other oil sands mining
operations and a state-of-the-art waterfowl deterrent system.
Construction of the initial development entailed 45 million person hours
of work and employed a peak workforce of more than 5,000 people. More
than $1 billion of the project investment was directed to local
suppliers and contractors in the Wood Buffalo region, of which more than
25 percent are Aboriginal-owned and operated.
The Kearl project is located about 75 kilometres northeast of Fort
McMurray, Alberta, and is operated by ExxonMobil affiliate, Imperial Oil
Limited.
CAUTIONARY STATEMENT: Estimates, expectations, and business plans in
this release are forward-looking statements. Actual future results,
including production rates, ultimate recoveries, and project plans and
schedules, could differ materially due to changes in market conditions
affecting the oil and gas industry or long-term oil and gas price
levels; political or regulatory developments; 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 'recoverable
resources' and similar terms include quantities of oil and gas that are
not yet classified as proved reserves but that we believe will be
produced in the future. The term 'project' as used in this release does
not necessarily have the same meaning as under SEC Rule 13q-1 relating
to government payment reporting. A single project for purposes of that
rule may encompass numerous properties, agreements, investments,
developments, phases, work efforts, activities, and components, each of
which we may also describe informally as a 'project'.
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