Taking on the World’s Toughest Energy...

Taking on the World’s Toughest Energy Challenges.TM

2006 Upstream Technology WebcastAugust 30, 2006

Forward-Looking Statements. Outlooks, projections, estimates, targets, and business plans in this presentation are forward-looking statements. Actual future results, including the outcome of our research programs and the development, deployment, cost, timing, and benefits of new technology and technology improvements could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil and gas industries; reservoir performance; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; the development of competitive technologies; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" on the Investor Information section of our website at www.exxonmobil.com.

Frequently Used Terms. References to resources and similar terms indicating quantities of oil and gas include amounts that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. References to reserves generally exclude year-end pricing effects and include ExxonMobil’s share of equity companies as well as tar sand reserves. For definitions and additional information regarding certain terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms“, quarterly 8-K filings regarding results of operations and financial condition, and other material posted on the Investor Information section of our website. The 2005 Financial and Operating Review on our website also contains important information including ExxonMobil's net interest in specific projects.

Cautionary Statement

Upstream Research OverviewSteve Cassiani

President

Taking on the World’s Toughest Energy Challenges.TM

Upstream Research Mission

URC - Taking a Leadership Role in:• Developing and globally deploying high impact technologies

• Providing expertise and solutions

• Training the industry’s most capable technical workforce

Technical Excellence throughout the Upstream

Continuing Commitment to Distinguishing Technology

Proprietary Research• Consistent funding• Sustainable and differentiating

Research Staff• Highly capable, culturally diverse• Breadth of skills and experience

Facilities• Unique, world-class laboratories• State-of-the-Art Training Center

History of Demonstrated Technology Achievements

Upstream TechnologiesJeff Johnson

Manager, Hydrocarbon Systems Analysis Division

Lee TillmanManager, Offshore Division

Taking on the World’s Toughest Energy Challenges .TM

Integrating Best-in-Class Capabilities

Understanding the Subsurface

New Hydrocarbon Play Concepts

Background• Substantial new hydrocarbon accumulations can best be identified

through integration of multiple advanced capabilities

Business Opportunity• Identify new resources ahead of competition

150 Million Years Ago


New Hydrocarbon Play Concepts

ExxonMobil Capability• Unparalleled worldwide data

and experience base• Unique fully integrated

“Plates to Pores” approach• Proprietary basin modeling

software

Impact• New exploration acreage

and deeper plays in Nigeria, Madagascar, and Canada

• New opportunities in mature regions of US and Europe

Pore-ScaleReservoir Quality

Plate and Earth History Reconstructions

100 um100 um

“Platesto

Pores”

Reservoirs

Migration pathways

Source

Reservoirs

Migration pathways

Source

Basin Fill and Migration History


Improved Seismic Processing and Interpretation

Background• Seismic data underpins hydrocarbon exploration

Business Opportunity• Improved opportunity identification and development effectiveness

using higher definition seismic data


Improved Seismic Interpretation

ExxonMobil Capability• Proprietary data

acquisition, processing, and rock property prediction

• Patented technologies

Impact• Substantially improved

interpretability and development planning in Chad, Venezuela, and West Africa

Conventional map for predicting porosity

Background• Pre-drill determination of

oil/water contacts in faulted reservoirs is complex and uncertain

Business Opportunity• Accurate prediction of

hydrocarbon location for improved resource assessment and reduced development cost

Optimizing the Development

Accurate Reservoir Connectivity Assessment

ExxonMobil Capability• Fundamental understanding

of controls on reservoir fluids • Systematic 3D integration of

all data • Unique expertise

Impact• Resource add at Hibernia • Reserves add in Mobile Bay,

United States• Enhanced development

planning in Malaysia, Nigeria, and Angola


Accurate Reservoir Connectivity Assessment


Carbonate Reservoir Characterization

Background• Carbonate reservoirs hold

~55% of the world’s discovered oil reserves

• Heterogeneity makes prediction of reservoir properties in carbonate rocks complex

Business Opportunity• Optimize development and

production of carbonate resources

Carbonate CoreSandstone Core


Carbonate Reservoir Characterization

ExxonMobil Capability• Unique integration of

knowledge and experience across disciplines and scales

• Advanced technologies for fracture and pore system prediction

Impact• Applying advanced

understanding to Qatar and Kazakhstan reservoir management

• Upper Zakum Award

• Banyu Urip development (Cepu-Indonesia)

Integrated Reservoir ManagementMaximizing Ultimate Value

ExxonMobil Reserves Revisions

Oil-Equivalent (millions of barrels)

0

200

400

600

800

1000

1200

2001 2002 2003 2004 2005

Average

1996 1997 1998 1999 2000

Background• Relentless pursuit to

maximize asset value

Business Opportunities• Maximize resource recovery• Minimize unit cost

Field DataSingle Perm ModelDual Perm Model

Time (years)

Prod

uctio

n R

ate

TM

Reservoir SimulationDual Permeability Simulation of Complex Fractured Reservoir

Maximizing Ultimate Value

Integrated Reservoir Management

ExxonMobil Capability• Closely integrated Geoscience

and Engineering approach• Proprietary methods for

measuring reservoir properties• Continued advancement of

industry-leading simulator

Impact• Underpin field development

decisions world-wide• Optimize depletion planning

of existing assets• ~500 MOEB in resource impact

in 2005/2006

Unique Laboratories

% R

ecov

ery XOM Approach

Industry Approach

Cumulative Gas Injected

Field Measurement

0 10 20 30 40 50 60

Physics-Limit Drilling

Background• Increasingly challenging wells

• 2005 ExxonMobil-stewarded drilling: $5.4 B

Business Opportunities• Drill wells successfully

every time

• Continue to reduce time to drill


Pressure Gradient

Complex Path

Extended Reach

Multiple Targets

Physics-Limit DrillingExxonMobil Capability• Understanding the fundamental

physics limits for drilling

• Unique, large-scale drilling simulation laboratories

• Industry leading, integrated, proprietary drilling design software

Impact• Unparalleled ability to drill

complex wells

• Consistent improvements in drilling rates of penetration (Fast Drill Process)

• Overall cost savings of >8% in 2005

Drilling Simulation Laboratory


Optimized Drilling Design

Undrillable with conventional

approach

High confidence with proprietary approach

800

2000

8.5

10 0

0.5

1

Flow Rate (gpm)Mud Weight

(ppg)

Prob

abili

t y o

f Suc

cess

800

2000

8.5

10 0

0.5

1

Flow Rate (gpm)Mud Weight

(ppg)

Prob

abili

t y o

f Suc

cess

800

2000

8.5

100

0.5

1Pr

obab

ility

of S

ucce

ss

Flow Rate (gpm)Mud Weight (ppg)

800

2000

8.5

100

0.5

1Pr

obab

ility

of S

ucce

ss

Flow Rate (gpm)Mud Weight (ppg)

Physics-Limit Completions

Background• Fewer wells per development

• Producing from multiple zones simultaneously

Business Opportunities• Optimize development costs

with fewer wells

• Maximize production from all zones


ExxonMobil’s Patented Sand Control Technology

Physics-Limit Completions

ExxonMobil Capability• Integrated near-well modeling

• Well operability limits

• Patented completion equipment and techniques

Impact• No deepwater well failures in

last 5 years (68 wells)

• Sustained high-rate production without intervention

• 18% deepwater completions cost savings in Angola

• Increased well flow efficiencies ~1.75 times industry average


Ensuring Production Integrity

Time

Prod

uctio

n R

ate

Failure

No Failure

Traditional Rate Limit

Superior Initial Completion PerformanceAlternate Path

Technology with NAFPac

Conventional Open Hole

Gravel Pack

Cum

ulat

ive

Prod

uctio

n

Time

Frontier Resource Commercialization

Background• Significant tight gas and heavy

oil resource base• Major production growth area

Business Opportunity• Cost-effectively commercialize

– >30 TCF gas in Piceance– >10 BOEB heavy oil in

Canada• Leverage technologies to

create additional business opportunities

YE 2005 ExxonMobil Resource Base73 BOEB

* Heavy Oil, Extra Heavy Oil, and Bitumen

Commercializing the Resource

LNG

DeepwaterArctic

Acid/ Sour Gas

Conventional

Tight Gas

Heavy Oil*

Frontier Resource CommercializationExxonMobil Capability• Industry leading, patented tight

gas stimulation technology • Experience in all major heavy oil

recovery processes• Patented thermal recovery

technology and distinguishing modeling capabilities

Impact• Commercializing Piceance Basin• Continuously improving the

world’s largest thermal bitumen recovery project– ~800 million barrels produced– Recovery increased from 13%

to >30% in last 20 years

Commercializing the Resource

Piceance Tight Gas Production

Technology Integration on a Massive Scale - Kizomba

Taking on the World’s Toughest Energy...

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