Exxon/SOCAR Sign Agreement on Another Major Caspian Sea

Exploration Block Irving, Texas (PROTEXT) - Exxon Corporation (NYSE: XON) announced today that its affiliate Exxon Exploration and Production Caspian Sea Limited has signed an agreement with the State Oil Company of the Azerbaijan Republic (SOCAR) that defines exploration, development and production sharing terms for the Zafar/Mashal offshore exploration block in the Azerbaijan sector of the Caspian Sea. Azerbaijan President Heydar Aliyev, U.S. Commerce Secretary William Daley, U.S. Energy Deputy Secretary T. J. Glauthier, U.S. Senator Kay Bailey Hutchison, and Exxon Exploration and Production Caspian Sea Limited President K. T. Koonce attended the signing ceremony held in Washington, D.C. Mr. Koonce said, "It is Exxon's desire to be a long-term, significant participant with the Azerbaijan Republic in the exploration and development of hydrocarbon resources in the Azerbaijan sector of the Caspian Sea. We are pleased to be able to further expand Exxon's interests in Azerbaijan by signing this agreement during President Aliyev's trip to the United States." This deepwater offshore exploration block includes both the Zafar and Mashal prospective structures (previously known as D-9 and D-38) and is located about 75 miles (110 kilometers) south- east of Baku. The block is located in water depths ranging from about 1,800 feet (550 meters) to 2,900 feet (900 meters) and covers about 250 square miles (640 square kilometers). "Under this agreement, Exxon will hold a 30 percent interest and SOCAR will have 50 percent interest. An Exxon affiliate will serve as operator," Mr. Koonce said. "We look forward to beginning exploration activities in the near future. While the Zafar/Mashal block is believed to be a very attractive prospect, drilling will be required to confirm the presence of hydrocarbons." Mr. Koonce emphasized Exxon's commitment to Azerbaijan. "Exploration and development activities in this area will provide long-term, mutual economic and employment benefits to the Azerbaijan Republic and Exxon," he said. Also in Azerbaijan, a separate Exxon affiliate owns an 8 percent interest in the joint development and production sharing agreement covering the estimated five billion barrel Azeri, Chirag, and deepwater Guneshli fields complex, sometimes referred to as the "Megastructure." The Megastructure is being operated by the Azerbaijan International Operating Company (AIOC), which is owned by a consortium of 11 companies. In addition, SOCAR and Exxon each own a 50 percent interest in the exploration, development, and production sharing agreement for the Nakhchivan exploration block in the Azerbaijan sector of the Caspian Sea. An Exxon affiliate serves as operator on behalf of the contractor parties under that agreement. Another Exxon affiliate holds a 15 percent interest in the exploration, development, and production sharing agreement for the Araz-Alov-Sharg exploration block which is also located in the Azerbaijan sector of the Caspian Sea. As affiliates of one of the world's largest corporations, the Exxon affiliates in Azerbaijan have access to state-of-the-art technology and experience in all aspects of the petroleum industry, including particular expertise in deepwater operations. Exxon holds an interest in about 40,000 square miles (100,000 square kilometers) in the deepwater areas offshore six continents around the world. ots Original Text Service: Exxon Corporation Internet: http://www.newsaktuell.de Contact: Ed Burwell of Exxon Corporation, (USA) 972-444-1108 Web site: http://www.exxon.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT