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Reuters: UPDATE 1-Exxon sees ’07 major project startups similar to ’06

Wed Jan 17, 2007 1:15pm ET

NEW YORK, Jan 17 (Reuters) – Exxon Mobil Corp. Senior Vice President Stuart McGill said on Wednesday the company expects to start up a similar number of major production projects this year as in 2006.

McGill, speaking at a Goldman Sachs energy conference, said the world’s largest oil and gas company started up seven major projects in 2006, six of which are liquids-focused. He said Exxon expects a more even distribution of oil and gas projects in 2007.

He said the company is working on a total of 30 major projects scheduled to start up in the near- to mid-term. He said most of these projects are oil.

McGill also gave an update on several of the company’s current projects.

Exxon’s Sakhalin-1 project, located on Sakhalin Island, Russia, is being closely watched after Gazprom took the majority stake in Sakhalin-2 from Royal Dutch Shell in a move that many analysts say amounts to a renationalization.

McGill said Sakhalin-1, which is also owned by Rosneft and a Japanese consortium, is producing over 200,000 barrels of oil equivalent per day (boepd) and continues to ramp up.

He said the company was planning the remaining development phases of Sakhalin.
In Nigeria, he said the company’s Erha and Erha North projects, which operate as a joint venture with the Nigeria National Petroleum Co., are producing about 240,000 boepd.

He also said Exxon’s Nigeria East Area additional oil recovery project is expected to deliver an incremental 560 million barrels of oil, up from previous estimates of 530 million barrels of oil. Exxon expects the Nigeria East Area natural gas liquids (NGL) project to deliver 300 million barrels of NGLs.

McGill said the total gross investment for these Nigeria East Area projects is $4 billion.

Shares of Exxon were up 32 cents at $71.95 in afternoon trading on the New York Stock Exchange on Wednesday.

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