Company Profile and History

ExxonMobil is the world’s largest publicly traded integrated petroleum and natural gas company. Both Exxon and Mobil are descendants of the John D. Rockefeller Corporation, Standard Oil, which was established in 1870. In 1911 Standard Oil was dissolved and split into 34 companies. Two of these companies were Jersey Standard ("Standard Oil Company of New Jersey"), which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil.

In Angola ExxonMobil has interests in four deepwater blocks that cover more than 3 million gross acres. The company and its co-venturers have announced a total of 51 discoveries in Angola, representing recoverable resource potential of nearly 13 billion oil-equivalent barrels (gross).

In 2001, Esso Exploration Angola Limited EEAL, an ExxonMobil affiliate, began construction on the Kizomba A project for Block 15’s Hungo and Chocalho fields. In August 2004, the Kizomba A floating production, storage and offloading vessel (FPSO) began production. Within this same period, Xikomba was developed utilizing an early production system (EPS) class FPSO, a converted very large crude carrier (VLCC) tanker. This was the third such vessel used in West Africa by ExxonMobil, and production started up in November 2003.

In February 2003, construction began on Kizomba B to develop the Kissanje and Dikanza discoveries. Kizomba B came on stream in July 2005. While smaller in production capacity than the newly built Kizomba A and B FPSOs, each has internal storage capacity of about 2 million barrels of oil.

In Country Location

Rua Rainha Ginga 128
Luanda, Angola
Phone: + 244 2 333 058
Fax: + 244 2 391 583

Services and Products

The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas and the manufacture, transportation and sale of petroleum products.

The company holds exploration and production acreage in 38 countries and conducts production operations in 23 countries around the world. It has interests in 37 refineries, and fuels and lubes marketing activities around the world and is the largest global refiner and manufacturer of lube base stocks, and supplier/marketer of petroleum products.

Number of Employees

700 Angolan employees-two thirds of the total work force in Angola. Total Employees Worldwide: 79 900

Financial Information

It had daily production of 3.921 million BOE (barrels of oil equivalent) in 2008, approximately 3% of world production.

Summary Statement of Income (millions of dollars)
Revenues and Other Income 2008 2007 2006 2005 2004
Sales and other operating revenue (1)(2) 459,579 390,328 365,467 358,955 291,252
Income from equity affiliates 11,081 8,901 6,985 7,583 4,961
Other income (3) 6,699 5,323 5,183 4,142 1,822
Total revenues and other income 477,359
  1. Sales and other operating revenue includes sales-based taxes of $34,508 million for 2008, $31,728 million for 2007, $30,381 million for 2006, $30,742 million for 2005 and $27,263 million for 2004.
  2. Sales and other operating revenue includes $30,810 million for 2005 and $25,289 million for 2004 for purchases/sales contracts with the same counterparty. Associated costs were included in Crude oil and product purchases. Effective January 1, 2006, these purchases/sales were recorded on a net basis with no resulting impact on net income.
Results of Operations: Africa

Petroleum product sales (Thousands of barrels daily)
United States 2,540 2,717
Non-U.S. 4,221 4,382
Total 6,761 7,099
Significant non-U.S. long-lived assets include:
Canada 12,018 14,167 12,323
Nigeria 9,227 7,504 7,350
Angola 6,129 5,084 4,271
Norway 5,856 7,920 6,977
United Kingdom 5,778 8,589 9,128
Singapore 5,113 3,598 2,964
Japan 4,769 4,077 4,008
Qatar 3,750 2,970 1,572

Market Share

ExxonMobil's operations in Africa accounted for about 17 percent of the company's 2008 net oil and gas production and 18 percent of upstream earnings.

ExxonMobil controls concessions covering 11 million acres (44,500 km²) off the coast of Angola that hold an estimated 7.5 billion barrels (1.2 km³) of crude. Production potential will reach 2.55 million b/d by 2012, making the country the largest oil producer in Africa.

ExxonMobil's subsidiary, Esso Exploration Angola is the second largest oil producer in Angola with an output exceeding 580,000 b/d from deep-water Block 15, where it has made 20 oil finds. Total peak production capacity in Block 15 is about 800,000 barrels per day. Angola's production is 1.9 million and total proven reserves in 2007 were 9 billion barrels, 0.72 per cent of the world total.

ExxonMobil estimates that its part of Block 15 contains 4.5 billion barrels of recoverable oil equivalent. The Kizomba-B project, which has developed the Kissanje, Marimba, and Dikanza fields, came on steam in late 2005 and is now producing over 250,000 b/d. The market share for Exxonmobil was 43.7% in 2007.

Net Liquids Production (1)-Including Oil Sands and Non-Consolidated Operations (Thousands of Barrels Per Day)

Business Objective

ExxonMobil is committed to the pursuit of operational excellence through improving energy efficiency and maintaining strong business controls. The company believes that maximizing the value of resource through disciplined investments, developing breakthrough technologies, improving processes, and integrated operations-generates the most benefit for resource owners, society, and shareholders. It also strives to promote the development of employees and the communities in which it operates.

Business Model

According to ExxonMobil it has ”a consistent and straightforward business model that combines our long-term perspective, disciplined approach to capital investment, and focus on operational excellence to grow shareholder value. “

“We identity, develop, and execute projects using global best practices that ensure project returns will be resilient across a range of economic scenarios. We operate our facilities using proven management systems to achieve operational excellence. As a result, we consistently generate more income from a highly efficient capital base, as demonstrated by our superior return on average capital employed. We deliver industry-leading financial and operating results that grow long-term shareholders value.

ExxonMobil has a long-standing commitment to fundamental research to develop and grow our technical capabilities and to deliver advantaged technologies for all of our businesses. Over the past five years, we have invested more than $3.7 billion in research and development. Our global functional organization enables rapid deployment of new technologies to ensure early value capture.

Our financial strength is a competitive advantage and gives us the flexibility to pursue and finance attractive investment opportunities around the world across business cycles. Host governments and project partners recognize our unique capabilities and benefit from the financial strength and expertise we bring to the development of resources.”

Ownership of Business

Block 15: ExxonMobil was awarded Block 15 in 1994 (ExxonMobil interest, 40 percent), and the first discovery was made in 1998. To date a total resource of nearly 5 billion oil-equivalent barrels (gross) has been discovered on the block. First oil was produced in November 2003 from the Xikomba field, followed by Kizomba A in 2004, Kizomba B in 2005, and Marimba North in 2007.

The Kizomba C Mondo project started up in January 2008 followed by the Kizomba C Saxi/Batuque project in July. Together these projects are expected to recover approximately 600 million barrels of oil (gross). Total combined daily production on the block peaked at over 700 thousand barrels per day (gross) in 2008.

Block 17: ExxonMobil owns a 20-percent interest in Block 17, where the first discovery was made in 1996. Through year-end 2008, 15 discoveries have been announced on the block with a total resource estimate of about 6 billion oil-equivalent barrels. A number of projects have started up, including Girassol in 2001, Dalia in 2006, and Rosa in 2007. During 2008, production was 500 thousand barrels per day (gross). Project execution began in 2008 for the Pazflor project, located 100 miles offshore in 2600 feet of water.

Block 31: ExxonMobil was awarded a 25-percent interest in Block 31 in 1999, and the first discovery was made in 2002. Through year-end 2008, 16 discoveries have been announced with a total resource of approximately 2 billion oil-equivalent barrels on the block. The first development is the Plutao-Saturno-Venus-Marte (PSVM) hub located in the northern part of the block. A single, 150-thousand-barrel-per-day FPSO vessel is planned for the four fields to produce an estimated 490 million barrels of oil (gross).

Block 32: ExxonMobil was awarded a 15-percent interest in Block 32 in 1999 and the first discovery was made in 2003. Through year-end 2008, 12 discoveries have been announced with a total resource of approximately 1.4 billion oil-equivalent barrels on the block. The first development being planned is the AB32 Southeast Hub in the east-central part of the block. A single FPSO vessel is planned to develop a combined resource of up to 650 million barrels of oil (gross).

Benefits Offered and Relations with Government

During the Angolan civil war BPAmoco, Elf and Exxon made signature bonuses of approximately US$870 million, in order to obtain the drilling licences for ultra-deep blocks 31-33. Much of this money was used for arms procurement. The awarding of the ultra-deep water oil blocks at the time raised serious questions about the role of international oil companies in perpetuating the war in Angola.

This concern was heightened at the time by the inclusion of equity partners, more normally associated with arms dealing than oil exploration, for the operator companies of the blocks 32 and 33-Elf Aquitaine and Exxon respectively..

In late 2008, the Angolan government began enforcing its Angolanization policy. Oil Companies are now under a decree promulgated on October 14, 2008 to first seek Angolan employees to fill any vacant position prior to seeking expatriate appointment, which must first be authorized by the Ministry of Petroleum. International oil companies are working with the government on a new local-content initiative that will establish more explicit sourcing requirements for the petroleum sector. Oil service companies may meet these requirements by partnering with local Angolan firms, hiring more Angolan employees or substituting local products for imports.

Petroleum industry tax regime: Oil companies are subject to a specific tax regime:

  • Petroleum income tax (PIT): PIT is levied on the income obtained from the exercise of petroleum transactions and any other income derived from other activities of a non-commercial or industrial nature.
  • Tax rate:
    (i) 65.75%-in relation to a joint venture agreement (“Associaãoem Participaão”);
    (ii) 50% – for a cost share agreement.
  • Petroleum Transaction Tax (PTT): PTT is due on all the income derived from petroleum transactions carried out under a joint venture agreement. The tax rate is 70%.
  • Surface: Surface fees are calculated based on production areas at a rate of $300 per square kilometre per year.
  • Production Royalty: This is due on non-PSA (Associa¸ãoem Participaão) total hydrocarbons production less hydrocarbons used in filed operations at a rate of 20% with possible reduction to 10%.
  • Annual contributions for training Angolan nationals-Entities Subject to Training Levy/Rates:
    (i) Enterprises that carry forward activities related to the production of petroleum/US$ 0.15 per produced barrel;
    (ii) Enterprises whose activities are in exploration and development phases/US$ 200,000 per year

Xikomba and the Kizomba A, B and C developments have awarded about $4 billion of work to the estimated 3,500 local contract and subcontract workers who support ongoing operations. Furthermore, EEAL’s development activities in Block 15 have created an even larger benefit to Angolan workers in other economic sectors, including transportation, logistics, maintenance and food services.

Product Development

EEAL and its partners invested $12 million to upgrade the Lobito fabrication yard and training facility. A new manufacturing plant in Lobito now makes the umbilical lines used to control subsea wells, and the Kizomba developments were its first customer.

Development drilling in current fields continues, and new development projects include Kizomba C in Angola Block 15 (ExxonMobil interest, 40 percent) and Dalia and Rosa in Angola Block 17 (ExxonMobil interest, 20 percent). Development projects for Block 31 (ExxonMobil interest, 25 percent) and Block 32 (ExxonMobil interest, 15 percent) are in the early stages of development.