XOM » Topics » Nigeria

These excerpts taken from the XOM 10-K filed Feb 26, 2010.

Nigeria

 

ExxonMobil’s net acreage totaled 1.0 million offshore acres at year-end 2009, with 6.7 net exploration and development wells completed during the year. Work continued on the deepwater Usan project in 2009. Projects to replace crude oil pipelines and to reduce flaring were progressed. A 3-D seismic acquisition program continued on the Nigerian Shelf joint venture acreage and a 4-D seismic survey was completed at the Erha field.

 

Nigeria

 

Exploration and production activities in the deepwater offshore areas are typically governed by production sharing contracts (PSCs) with the national oil company, the Nigerian National Petroleum Corporation (NNPC). NNPC holds the underlying Oil Prospecting License (OPL) and any resulting Oil Mining Lease (OML). The terms of the PSCs are generally 30 years, including a ten-year exploration period (an initial exploration phase plus one or two optional periods) covered by an OPL. Upon commercial discovery, an OPL may be converted to an OML. Partial relinquishment is required under the PSC at the end of the ten-year exploration period, and OMLs have a 20-year production period that may be extended.

 

Some exploration activities are carried out in deepwater by joint ventures with local companies holding interests in an OPL. OPLs in deepwater offshore areas are valid for ten years and are non-

 

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Index to Financial Statements

renewable, while in all other areas the licenses are for five years and also are non-renewable. Demonstrating a commercial discovery is the basis for conversion of an OPL to an OML.

 

OMLs granted prior to the 1969 Petroleum Act (i.e., under the Mineral Oils Act 1914, repealed by the 1969 Petroleum Act) were for 30 years onshore and 40 years in offshore areas and have been renewed, effective December 1, 2008, for a further period of 20 years, with a further renewal option of 20 years. Operations under these pre-1969 OMLs are conducted under a joint venture agreement with NNPC rather than a PSC. In 2000, a Memorandum of Understanding (MOU) was executed defining commercial terms applicable to existing joint venture oil production. The MOU may be terminated on one calendar year’s notice.

 

OMLs granted under the 1969 Petroleum Act, which include all deepwater OMLs, have a maximum term of 20 years without distinction for onshore or offshore location and are renewable, upon 12 months’ written notice, for another period of 20 years. OMLs not held by NNPC are also subject to a mandatory 50-percent relinquishment after the first ten years of their duration.

 

These excerpts taken from the XOM 10-K filed Feb 27, 2009.

Nigeria

 

Exploration and production activities in the deepwater offshore areas are typically governed by production sharing contracts (PSCs) with the national oil company, the Nigerian National Petroleum Corporation (NNPC). NNPC holds the underlying Oil Prospecting License (OPL) and any resulting Oil Mining Lease (OML). The terms of the PSCs are generally 30 years, including a ten-year exploration period (an initial exploration phase plus one or two optional periods) covered by an OPL. Upon commercial discovery, an OPL may be converted to an OML. Partial relinquishment is required under the PSC at the end of the ten-year exploration period, and OMLs have a 20-year production period that may be extended.

 

Some exploration activities are carried out in deepwater by joint ventures with local companies holding interests in an OPL. OPLs in deepwater offshore areas are valid for ten years and are non-renewable, while in all other areas the licenses are for five years and also are non-renewable. Demonstrating a commercial discovery is the basis for conversion of an OPL to an OML.

 

OMLs granted prior to the 1969 Petroleum Act (i.e., under the Mineral Oils Act 1914, repealed by the 1969 Petroleum Act) were for 30 years onshore and 40 years in offshore areas and are renewable upon 12 months’ written notice, for further periods of 30 and 40 years, respectively. Operations under these pre-1969 OMLs are conducted under a joint venture agreement with NNPC rather than a PSC. In 2000, a Memorandum of Understanding (MOU) was executed defining commercial terms applicable to existing joint venture oil production. The MOU may be terminated on one calendar year’s notice.

 

OMLs granted under the 1969 Petroleum Act, which include all deepwater OMLs, have a maximum term of 20 years without distinction for onshore or offshore location and are renewable, upon 12 months’ written notice, for another period of 20 years. OMLs not held by NNPC are also subject to a mandatory 50-percent relinquishment after the first ten years of their duration.

 

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Index to Financial Statements

Nigeria

SIZE="1"> 

Exploration and production activities in the deepwater offshore areas are typically governed by production sharing contracts
(PSCs) with the national oil company, the Nigerian National Petroleum Corporation (NNPC). NNPC holds the underlying Oil Prospecting License (OPL) and any resulting Oil Mining Lease (OML). The terms of the PSCs are generally 30 years, including a
ten-year exploration period (an initial exploration phase plus one or two optional periods) covered by an OPL. Upon commercial discovery, an OPL may be converted to an OML. Partial relinquishment is required under the PSC at the end of the ten-year
exploration period, and OMLs have a 20-year production period that may be extended.

 

FACE="Times New Roman" SIZE="2">Some exploration activities are carried out in deepwater by joint ventures with local companies holding interests in an OPL. OPLs in deepwater offshore areas are valid for ten years and are non-renewable, while in all
other areas the licenses are for five years and also are non-renewable. Demonstrating a commercial discovery is the basis for conversion of an OPL to an OML.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">OMLs granted prior to the 1969 Petroleum Act (i.e., under the Mineral Oils Act 1914, repealed by the 1969 Petroleum Act) were for 30 years onshore and 40
years in offshore areas and are renewable upon 12 months’ written notice, for further periods of 30 and 40 years, respectively. Operations under these pre-1969 OMLs are conducted under a joint venture agreement with NNPC rather than a PSC. In
2000, a Memorandum of Understanding (MOU) was executed defining commercial terms applicable to existing joint venture oil production. The MOU may be terminated on one calendar year’s notice.

STYLE="margin-top:0px;margin-bottom:0px"> 

OMLs granted under the 1969 Petroleum Act, which include all deepwater OMLs,
have a maximum term of 20 years without distinction for onshore or offshore location and are renewable, upon 12 months’ written notice, for another period of 20 years. OMLs not held by NNPC are also subject to a mandatory 50-percent
relinquishment after the first ten years of their duration.

 


11







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Index to Financial Statements


Nigeria

 

ExxonMobil’s net acreage totaled 1.0 million offshore acres at year-end 2008, with 10.9 net exploration and development wells completed during the year. The ExxonMobil-operated East Area Natural Gas Liquids II project started up in 2008. This project reduced flared gas and will recover high-value natural gas liquids from the gas stream. Work continued on the deepwater Usan project in 2008. A 3D seismic acquisition program that will provide enhanced resolution of existing fields and target deeper formations progressed. Appraisal drilling continued at Bonga North, Erha North East and Bosi North Deep fields.

 

Nigeria

SIZE="1"> 

ExxonMobil’s net acreage totaled 1.0 million offshore acres at year-end 2008, with 10.9 net exploration and development
wells completed during the year. The ExxonMobil-operated East Area Natural Gas Liquids II project started up in 2008. This project reduced flared gas and will recover high-value natural gas liquids from the gas stream. Work continued on the
deepwater Usan project in 2008. A 3D seismic acquisition program that will provide enhanced resolution of existing fields and target deeper formations progressed. Appraisal drilling continued at Bonga North, Erha North East and Bosi North Deep
fields.

 

These excerpts taken from the XOM 10-K filed Feb 28, 2008.

Nigeria

 

ExxonMobil’s net acreage totaled 1.3 million offshore acres at year-end 2007, with 12.8 net exploration and development wells completed during the year. Production was initiated from the Erha North Expansion area in December 2007. Construction continued on the ExxonMobil-operated East Area Natural Gas Liquids II project with startup planned for 2008. A 3D seismic acquisition program was initiated to both enhance resolution of existing fields and target deeper formations. Major contracts on the Usan project are expected to be awarded in early 2008.

 

Nigeria

 


ExxonMobil’s net acreage totaled 1.3 million offshore acres at year-end 2007, with 12.8 net exploration and development wells completed during the
year. Production was initiated from the Erha North Expansion area in December 2007. Construction continued on the ExxonMobil-operated East Area Natural Gas Liquids II project with startup planned for 2008. A 3D seismic acquisition program was
initiated to both enhance resolution of existing fields and target deeper formations. Major contracts on the Usan project are expected to be awarded in early 2008.

SIZE="1"> 

This excerpt taken from the XOM 10-K filed Feb 28, 2007.

Nigeria

 

ExxonMobil’s net acreage totaled 1.3 million offshore acres at year-end 2006, with 21.5 net exploration and development wells completed during the year. Several major project start-ups were executed in the year. The Yoho field (OML 104) full-field production platform started production in January 2006. The Erha Floating Production, Storage and Offloading (FPSO) vessel commenced production from the deepwater Erha field (OML 133) in March 2006. Production was initiated from the Erha North field (tie-back to the Erha FPSO) in September 2006. The ExxonMobil-operated East

 

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Area Additional Oil Recovery project started up in January 2006 and pipeline tie-ins continued throughout the year. This project positions Nigerian operations for a significant reduction in flaring in 2007. Detailed design and construction continued on the ExxonMobil-operated East Area Natural Gas Liquids II project. The Amenam-Kpono Phase 2 Gas project started up in late 2006.

 

This excerpt taken from the XOM 10-K filed Feb 28, 2006.

Nigeria

 

ExxonMobil’s net acreage totaled 1.6 million offshore acres at year-end 2005, with 17.3 net exploration and development wells completed during the year. The ExxonMobil-operated Yoho field (OML 104) early production system was expanded, and the full field production platform was installed. The ExxonMobil-operated East Area Additional Oil Recovery platform was also installed, and detailed design and construction began on the ExxonMobil-operated East Area NGL II project. Production began in 2005 at the deepwater Bonga field (OML 118). Drilling continued at the ExxonMobil-operated deepwater Erha field (OPL 209), and the Erha FPSO vessel arrived. Construction continued on the

 

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Index to Financial Statements

Amenam-Kpono Phase 2 Gas project and Front End Engineering and Design (FEED) work was initiated on the deepwater Usan field (OPL 222).

 

This excerpt taken from the XOM 10-K filed Feb 28, 2005.

Nigeria

 

ExxonMobil’s net acreage totaled 1.7 million offshore acres at year-end 2004, with 11.0 net exploration and development wells completed during the year. Drilling continued in 2004 on the new Yoho and Awawa platforms, installed in 2003, as development continued at the ExxonMobil-operated Yoho field (OML 104). The Yoho Floating, Storage and Offloading (FSO) facility also arrived on site and installation is progressing. Construction also continued on the Amenam-Kpono Phase 2 Gas project. Construction, installation and drilling activities continued at the Bonga field (OML 118), and

 

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drilling and construction activities are underway on the ExxonMobil-operated Erha field (OPL 209). Construction and installation are underway on the ExxonMobil-operated East Area Additional Oil Recovery project. The financing agreement and construction contracts for the ExxonMobil-operated East Area NGL project were signed in 2004.

 

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