Exxon Mobil’s proved reserves at year-end 2018 totaled 24.3 Bboe with liquids representing 64% of the reserves, up from 57% in 2017. (Source: Exxon Mobil Corp.)
Higher commodity prices, offshore discoveries and unconventional drilling gave Exxon Mobil Corp.’s (NYSE: XOM) proved oil and gas reserves a nice bump last year, adding 4.5 billion barrels of oil equivalent (Bboe), the Irving, Texas-based oil major said Feb. 26.
“Multiple new discoveries offshore Guyana, continued growth in the Permian Basin and a strategic acquisition in Brazil greatly enhanced our already strong portfolio of high-quality, low-cost-of-supply opportunities,” Darren W. Woods, Exxon Mobil chairman and CEO, said in a statement.
At year-end 2018, Exxon Mobil’s proved reserves totaled 24.3 Bboe. Liquids represented 64% of the reserves, up from 57% in 2017.
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The reserves additions last year replaced 313% of the year’s production and at its current production rate, Exxon Mobil’s reserves life is 17 years, according to the company release.
The additions reflect new developments as well as revisions, including price impacts, and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance, the company said.
Over the past 10 years, Exxon Mobil said it has added proved oil and gas reserves totaling about 17 Bboe, replacing 108% of produced volumes, including the impact of asset sales.
“We continue to add high-value, attractive assets to our portfolio that have positioned the company for long-term growth,” Woods said. “Our unique strengths, integrated businesses and technical expertise continue to grow value for our shareholders.”
For example, Exxon Mobil said it added 1.3 Bboe to its resource base in 2018 through by-the-bit exploration discoveries and strategic acquisitions, primarily offshore Guyana and Brazil. Additionally, proved additions from unconventional plays, including in the Permian Basin, totaled roughly 1.2 Bboe.
Exxon Mobil recently reached 12 discoveries offshore Guyana, which builds on the previously announced estimated recoverable resource of more than 5 Bboe on the Stabroek block the company operates with partners Hess Corp. (NYSE: HES) and CNOOC Ltd. (NYSE: CEO).
Also, going forward Exxon Mobil plans to triple its production from the more than 1.6 million acres it has amassed in the Permian Basin by 2025.
At an industry event late last month, Staale Gjervik, senior vice president of Permian integrated development for Exxon Mobil subsidiary XTO Energy, said the company is currently producing more than 230,000 net barrels of oil equivalent.
Exxon Mobil also recently struck a partnership with Microsoft Corp. (NASDAQ: MSFT) to use the tech company’s cloud technology on its Permian operations, which it expects to generate billions of dollars in value as it expands its production in the basin.
On Feb. 26, Exxon Mobil added that significant additions in the Permian Basin are supported by the company’s growth plan, which includes increased drilling activity and infrastructure development.
Emily Patsy can be reached at epatsy@hartenergy.com.
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