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 andProduction Caspian Sea Limited has signed an agreement with theState Oil Company of the Azerbaijan Republic (SOCAR) that definesexploration, development and production sharing terms for theZafar/Mashal offshore exploration block in the Azerbaijan sectorof the Caspian Sea. Azerbaijan President Heydar Aliyev, U.S. Commerce SecretaryWilliam Daley, U.S. Energy Deputy Secretary T. J. Glauthier, U.S.Senator Kay Bailey Hutchison, and Exxon Exploration andProduction Caspian Sea Limited President K. T. Koonce attendedthe 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 theexploration and development of hydrocarbon resources in theAzerbaijan sector of the Caspian Sea. We are pleased to be ableto further expand Exxon's interests in Azerbaijan by signing thisagreement during President Aliyev's trip to the United States." This deepwater offshore exploration block includes both theZafar and Mashal prospective structures (previously known as D-9and D-38) and is located about 75 miles (110 kilometers) south-east of Baku. The block is located in water depths ranging from about 1,800feet (550 meters) to 2,900 feet (900 meters) and covers about 250square miles (640 square kilometers). "Under this agreement, Exxon will hold a 30 percent interestand SOCAR will have 50 percent interest. An Exxon affiliate willserve as operator," Mr. Koonce said. "We look forward tobeginning exploration activities in the near future. While theZafar/Mashal block is believed to be a very attractive prospect,drilling will be required to confirm the presence ofhydrocarbons." Mr. Koonce emphasized Exxon's commitment to Azerbaijan."Exploration and development activities in this area will providelong-term, mutual economic and employment benefits to theAzerbaijan Republic and Exxon," he said. Also in Azerbaijan, a separate Exxon affiliate owns an 8percent interest in the joint development and production sharingagreement covering the estimated five billion barrel Azeri,Chirag, and deepwater Guneshli fields complex, sometimes referredto as the "Megastructure." The Megastructure is being operatedby the Azerbaijan International Operating Company (AIOC), whichis owned by a consortium of 11 companies. In addition, SOCAR and Exxon each own a 50 percent interest inthe exploration, development, and production sharing agreementfor the Nakhchivan exploration block in the Azerbaijan sector ofthe Caspian Sea. An Exxon affiliate serves as operator on behalfof the contractor parties under that agreement. Another Exxon affiliate holds a 15 percent interest in theexploration, development, and production sharing agreement forthe Araz-Alov-Sharg exploration block which is also located inthe Azerbaijan sector of the Caspian Sea. As affiliates of one of the world's largest corporations, theExxon affiliates in Azerbaijan have access to state-of-the-arttechnology and experience in all aspects of the petroleumindustry, including particular expertise in deepwater operations.Exxon holds an interest in about 40,000 square miles (100,000square kilometers) in the deepwater areas offshore six continentsaround the world. ots Original Text Service: Exxon CorporationInternet: http://www.newsaktuell.de Contact: Ed Burwell ofExxon Corporation, (USA) 972-444-1108 Web site:http://www.exxon.com

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