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Exxon Mobil's (XOM) CEO Rex Tillerson Hosts Annual Shareholder Meeting (Transcrip... Page 7 of 25
OIMS provides a risk management framework with rigorously applied systems and processes to manage safety, security, help
and environmental risk and to achieve excellence in our operating performance. OIMS guides the activities of each of our
employees as well as our third party contractors around the world. Through OIMS, we focus on clearly defined policies to
reinforce accountability and leadership and set expectations, measure performance and recognize progress. Bottom line OIMS
helps us to sustain superior operational performance and ultimately maintain our liaisons through operations. Exxon Mobil is
well positioned to deliver profitable growth. This chart summarizes key elements of our strategy that provides the financial
flexibility required to fund our business and generate robust shareholder returns.
In the upstream, we are adding 1 million net oil equivalent barrels per day of new production volumes by the year 2017
through major projects start ups. Also improving the production with higher liquids and liquids price linked gas volumes, and
increasing unit profitability through improved fiscal terms and the pursuit of better margins for each barrel we produce. In the
downstream and chemical segments, we are diversifying feedstocks through our flexible and integrated system continuously
pursuing operating efficiencies and maximizing sales of high value products. Our businesses also generate cash flow through
active ongoing portfolio management and continued CapEx discipline with a clear focus on delivering the industry leading
returns on capitals employed. Operational excellence, integration advantages and technology leadership across all of our
businesses underpin our ability to grow cash flow.
I will now provide more insight into each of our businesses. In the upstream Exxon Mobil has a large high-quality portfolio with
more than 120 projects including 21 new startups planned between now and the year 2017. This slide highlights 8 of the major
projects that we plan to startup either this year in 2014 or next. These projects are representative of our geographic diversity
ranging from North America to Russia, Southeast Asia and Australia to Africa and the Middle East. We are investing across a
broad set of resource types, including the liquefied natural gas, the Arctic, the deepwater, conventional and all sands
developments. These projects provide a strong foundation for profitable volume growth across a diverse resourced pipe with a
broad set of technology approaches and attractive fiscal regimes. And in the near-term, grow liquids and liquids price linked
production. So let me give you a brief insight of our Papua New Guinea LNG project.
The picture shows the LNG plant near Port Moresby. And you can also see the loading jetty in the background extending out
into water. The successful completion of the project is unlocking the potential of a very high quality gas resource. The Papua
New Guinea demonstrates again Exxon Mobil's world class project execution capabilities. Beginning with the construction of a
430 mile pipeline, the installation through mountainous jungle was accomplished while overcoming flooding, challenging
volcanic soil conditions and steep pinnacle slopes. Because of the lack of preexisting infrastructure, we constructed
supplemental roads, communication lines and build up a new airfield. A project requires substantial community and local travel
outreach and engagement and effective relationships with the government and indigenous communities.
Despite the many challenges, the project progressed ahead of schedule with LNG production now having started up and the
first cargo of LNG loaded in last few days on its way to Tokyo, Japan. We continue to assess potentials for expansion of this
project. We are well positioned for a high margin liquid growth in North America, probably the most exciting story in the energy
industry over the last 30 years. Our unconventional position totals more than 10 million acres Including high quality tight oil,
and liquids rich place in the Bakken, the Permian, the Woodford Ardmore, the Montney, Duvernay in Canada, and the
Athabasca Oil Sands. And high quality shale positions in Hanesville and Marsalis basins. In addition we hold more than 10
million acres of conventional resource that will contribute to long term liquid production. The combination of XTO's execution
capability and Exxon Mobil's research expertise is advancing improvements in both resource recovery and cost development.
As shown in the lower left we are growing profitable liquid production from our North Amercian holdings to one million barrels
per day by 2017 representing a 50% increase since 2012. While the gas production outlook in red reflects our current views of
market demand, we do have a very deep ready to drill inventory of well locations, and the ability to quickly increase natural gas
production if market conditions demand so.
Essential to our long term growth is developing and maintaining a very deep and diverse portfolio of resource discovery and
development opportunities which are indicated on this map. The green color dots highlight conventional opportunities. These
include activities in the established areas such as Nigeria, Papua New Guinea, The Gulf of Mexico and Tanzania as well as
new areas where we have made significant additions to our portfolio including Brazil, Liberia, Gabon and South Africa. Red
color dots highlight our unconventional portfolio. During the past year we had new opportunities In type and heavy oil in
Canada. We also have significant activity in South America and soon in West Siberia. The audit portfolio we have shown with
the blue dots, the audit section is our most recent and most substantial addition to our global portfolio with substantial new
escalation acreage in the Russian audit. We are considering these long term opportunities we are well positioned to leverage
the depth of our world wide experience.
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