Exxon has 111 % reserve replacements, Arco 164 %
Feb. 24, 1998 Exxon and Arco have announced significant reserve replacements in their world-wide oil and gas production for 1997.
Exxon has announced that its world-wide additions to proved oil and gas reserves totalled more than 1.2 bn barrels of oil equivalent (boe) in 1997 - representing a 121 % replacement of the firm's production.
Exxon chairman Lee Raymond said: "This year's strong performance is the fourth in a row that we've exceeded 100 % replacement. Over the last 10 years, we've added 10.7 bn boe to proved reserves, more than replacing reserves produced."
The figures excluded property sales that totalled 100 mm boe. With sales included, reserve replacement in 1997 totalled 111 %.
Production totalled more than 1 bn boe in 1997, similar to 1996. Liquids production was 580 mm barrels and gas production exceeded 2.5 tcf for the second year in a row.
The 1997 results were led by significant new reserve additions associated with Exxon's expanded involvement in Malaysia's long-term
natural gas business through the signing of a new gas production sharing agreement.
Other reserve increases came from the Exxon-operated Hoover/Diana deepwater field in the Gulf of Mexico and the planned opening of the new Aurora Bitumen mine in Canada.
Arco has replaced 164 % of its 1997 production with new reserves, adding 600 mm boe at $ 4.45 per barrel. The company replaced 133 % of its reserves in 1996.
Arco's chairman and chief executive Mike Bowlin said the reserve replacement was "even more exciting because all of our major oil and gas operations contributed to the total, ranging from 318 % replacement in our international growth business to 100 % replacement from our current major producing area in Alaska".
The largest addition of international reserves - 100 mm barrels - came from the company's 27.5 % interest in the Shearwater gas condensate field plus small interests in adjacent Elgin and Franklin fields in the UK North Sea.
Not included in the 1997 reserve replacement figures
was one of the largest discoveries in Arco's history - Tangguh in Irian Jaya, Indonesia - which contains certified proved and probable reserves of 13 tcf and 6.5 tcf of possible gas reserves, or 3.3 bn boe.
Also not included were reserves of 450 mm to 500 mm barrels of oil expected to be added from previously disclosed resources in Venezuela.
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