What changed in this filing

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Item 2. Properties

2022-02-23 compared with 2021-02-24 · 64 added, 83 removed, 634 unchanged (19% of the section changed)

5 unchanged sentences

The Corporation has reported proved reserves on the basis of the average of the first-day-of-the-month price for each month during the last 12-month period.

Primarily as a result of very low prices during 2020 and the effects of reductions in capital expenditures, under the SEC definition of proved reserves, certain quantities of crude oil, bitumen, and natural gas that qualified as proved reserves in prior years did not qualify as proved reserves at year-end 2020.

As a result of higher average prices in 2021, certain quantities of crude oil, bitumen, and natural gas that did not qualify as proved reserves in the prior year qualified as proved reserves at year-end 2021.

Otherwise, no major discovery or other favorable or adverse event has occurred since December 31, 2021 that would cause a significant change in the estimated proved reserves as of that date.

56 unchanged sentences

In addition, proved reserves could be affected by an extended period of low prices which could reduce the level of the Corporation’s capital spending and also impact our partners’ capacity to fund their share of joint projects.

During the first and second quarters of 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects.

On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products.

This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.

Market conditions continued to reflect considerable uncertainty throughout 2020.

As noted above, certain quantities of crude oil, bitumen, and natural gas that qualified as proved reserves in prior years did not qualify as proved reserves at year-end 2020.

Amounts no longer qualifying as proved reserves include 3.1 billion barrels of bitumen at Kearl, 0.6 billion barrels of bitumen at Cold Lake, and 0.5 billion oil-equivalent barrels in the United States.

The Corporation's near-term reduction in capital expenditures resulted in a net reduction to estimates of proved reserves of approximately 1.5 billion oil-equivalent barrels, mainly related to unconventional drilling in the United States.

Among the factors that could result in portions of these amounts being recognized again as proved reserves at some point in the future are a recovery in the SEC price basis, cost reductions, operating efficiencies, and increases in planned capital spending.

Technologies Used in Establishing Proved Reserves Additions in 2021

2 unchanged sentences

The data utilized also included subsurface information obtained through indirect measurements including high-quality 3‑D and 4‑D seismic data, calibrated with available well control information.

The tools used to interpret the data included proprietary seismic processing software, proprietary reservoir modeling and simulation software, and commercially available data analysis packages.

The tools used to interpret the data included seismic processing software, reservoir modeling and simulation software, and data analysis packages.

In some circumstances, where appropriate analog reservoirs were available, reservoir parameters from these analogs were used to increase the quality of and confidence in the reserves estimates.

4 unchanged sentences

In addition, the group provides training to personnel involved in the reserves estimation and reporting process within ExxonMobil and its affiliates.

The Manager of the Global Reserves and Resources group has more than 30 years of experience in reservoir engineering and reserves assessment, has a degree in Engineering and currently serves on the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).

The Manager of the Global Reserves and Resources group has more than 30 years of experience in reservoir engineering and reserves assessment, has a degree in Engineering and served on the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).

The group is staffed with individuals that have an average of more than 15 years of technical experience in the petroleum industry, including expertise in the classification and categorization of reserves under SEC guidelines.

11 unchanged sentences

This represents 34 percent of the 18.5 GOEB reported in proved reserves.

This compares to the 7.7 GOEB of proved undeveloped reserves reported at the end of 2019.

This compares to 5.0 GOEB of proved undeveloped reserves reported at the end of 2020.

During the year, ExxonMobil conducted development activities that resulted in the transfer of approximately 0.5 GOEB from proved undeveloped to proved developed reserves by year end.

The largest transfers were related to development activities in the United States, Qatar, the United Arab Emirates, and Guyana.

During 2020, extensions, primarily in the United States and Canada, resulted in an addition of approximately 0.5 GOEB of proved undeveloped reserves.

Also, as a result of very low prices during 2020 and the effects of reductions in capital expenditures, the Corporation reclassified approximately 2.3 GOEB of proved undeveloped reserves which no longer met the SEC definition of proved reserves, primarily in the United States and Canada.

The largest transfers were related to development activities in the United States.

During 2021, extensions and discoveries, primarily in the United States, Brazil, and Guyana, resulted in an addition of approximately 1.3 GOEB of proved undeveloped reserves, along with an increase of approximately 0.6 GOEB due to revisions primarily in Asia and Canada.

Overall, investments of $8.0 billion were made by the Corporation during 2021 to progress the development of reported proved undeveloped reserves, including $7.8 billion for oil and gas producing activities, along with additional investments for other non-oil and gas producing activities such as the construction of support infrastructure and other related facilities.

3 unchanged sentences

Development projects typically take several years from the time of recording proved undeveloped reserves to the start of production and can exceed five years for large and complex projects.

Proved undeveloped reserves in Australia, Kazakhstan, the United States, and the United Arab Emirates have remained undeveloped for five years or more primarily due to constraints on the capacity of infrastructure, as well as the time required to complete development for very large projects.

Proved undeveloped reserves in Australia, Canada, Kazakhstan, the United States, and the United Arab Emirates have remained undeveloped for five years or more primarily due to constraints on the capacity of infrastructure, as well as the time required to complete development for very large projects.

The Corporation is reasonably certain that these proved reserves will be produced;

2 unchanged sentences

In Australia, proved undeveloped reserves are associated with future compression for the Gorgon Jansz LNG project.

In Canada, proved undeveloped reserves are related to Cold Lake operations.

In Kazakhstan, the proved undeveloped reserves are related to the remainder of the Tengizchevroil joint venture development that includes a production license in the Tengiz - Korolev field complex.

168 unchanged sentences

Canada/Other Americas 28 36 49

Asia 15 12 14

Australia/Oceania — 4 —

31 unchanged sentences

During 2021, average net production at Kearl was about 251 thousand barrels per day.

Primarily as a result of very low prices during 2020, under the SEC definition of proved reserves, the entire 3.1 billion barrels of bitumen at Kearl did not qualify as proved reserves at year-end 2020.

During 2021, approximately 2.4 billion barrels of bitumen at Kearl were added to proved reserves primarily as a result of an improved SEC price basis versus 2020.

Present Activities

16 unchanged sentences

Africa — — 6 1

Asia 2 1 11 3

Total Equity Companies 14 1 12 4

5 unchanged sentences

Development activities continued on the Golden Pass liquefied natural gas export project.

During the year, 478.9 net exploration and development wells were completed in the inland lower 48 states.

During the year, a total of 449.4 net exploration and development wells were completed in the inland lower 48 states.

Development activities focused on liquids-rich opportunities in the onshore U.S., primarily in the Permian Basin of West Texas and New Mexico.

ExxonMobil’s net acreage in the Gulf of Mexico at year-end 2021 was 0.3 million acres.

A total of 0.9 net development wells were completed during the year.

A total of 0.8 net exploration and development wells were completed during the year.

Participation in Alaska production and development continued with a total of 1.1 net development wells completed.

2 unchanged sentences

ExxonMobil’s year-end 2021 acreage holdings totaled 6.7 million net acres, of which 3.9 million net acres were offshore.

A total of 6.1 net exploration and development wells were completed during the year.

A total of 3.7 net development wells were completed during the year.

In Situ Bitumen Operations:

4 unchanged sentences

ExxonMobil’s net acreage totaled 2.6 million offshore acres at year-end 2021.

During the year, 2.4 net exploration and development wells were completed.

Development activities continued on the Liza Phase 2 project, and the Payara project was funded in 2020.

ExxonMobil’s net acreage totaled 1.7 million onshore acres at year-end 2020.

During the year, 0.8 net exploration and development wells were completed.

ExxonMobil’s net interest in licenses totaled approximately 1.4 million acres, of which 1.0 million acres were onshore at year-end 2020.

During the year, a total of 1.4 net exploration wells were completed.

The Bacalhau Phase 1 project was funded in 2021.

ExxonMobil’s net acreage totaled 4.6 million offshore acres at year-end 2021.

During the year, a total of 11 net exploration and development wells were completed.

In 2020, the Dutch Government further reduced Groningen gas extraction and maintained its plan to terminate Groningen production in 2022.

Development activities continued on the Liza Phase 2 and Payara projects.

ExxonMobil’s net acreage totaled 1.6 million onshore acres at year-end 2021.

During the year, a total of 0.3 net development well was completed.

ExxonMobil’s net interest in licenses totaled 1.4 million acres, of which 1.0 million acres were onshore at year-end 2021.

During the year, a total of 0.5 net development well was completed.

In 2021, the Dutch Government further reduced Groningen gas extraction.

The expectation is that Groningen will cease regular production in 2022.

United Kingdom

ExxonMobil’s net interest in licenses totaled approximately 0.3 million offshore acres at year-end 2020.

During the year, a total of 1.9 net development wells were completed.

Development activities continued on the Penguins Redevelopment project.

ExxonMobil’s net acreage totaled approximately 3.0 million acres, of which 2.9 million net acres were offshore at year-end 2020.

ExxonMobil’s net interest in licenses totaled 0.1 million offshore acres at year-end 2021.

During the year, a total of 0.4 net development well was completed.

ExxonMobil’s net acreage totaled 3.0 million acres, of which 2.9 million net acres were offshore at year-end 2021.

During the year, a total of 1.1 net development wells were completed.

In 2020, ExxonMobil acquired approximately 2.7 million net acres in three offshore blocks located in the Namibe basin.

ExxonMobil’s net acreage holdings totaled 46 thousand onshore acres at year-end 2020.

ExxonMobil’s net acreage totaled 46 thousand onshore acres at year-end 2021.

In 2021, ExxonMobil entered into an agreement to divest its assets in Chad.

The transaction is expected to close in 2022.

Equatorial Guinea

ExxonMobil’s net acreage totaled 0.1 million offshore acres at year-end 2021.

During the year, a total of 0.8 net development well was completed.

ExxonMobil’s net acreage totaled approximately 1.8 million offshore acres at year-end 2020.

Development activities continued on the Coral South Floating LNG project during the year.

In 2021, ExxonMobil relinquished 0.4 million net offshore acres.

ExxonMobil’s net acreage totaled 1.8 million offshore acres at year-end 2021.

During the year, a total of 1.8 net exploration and development wells were completed.

During the year, a total of 1.5 net development wells were completed.

Development activities continued on the Coral South Floating LNG project.

ExxonMobil’s net acreage totaled 0.9 million offshore acres at year-end 2021.

ExxonMobil's net acreage totaled 7 thousand offshore acres at year-end 2021.

1 unchanged sentence

ExxonMobil’s net acreage totaled 0.1 million onshore acres at year-end 2021.

ExxonMobil’s net acreage totaled 0.1 million onshore acres at year-end 2020.

During the year, a total of 8.2 net development wells were completed at the West Qurna Phase I oil field.

Oil field rehabilitation activities continued during 2020 and across the life of this project will include drilling of new wells, working over of existing wells, and optimization, debottlenecking and expansion of facilities.

In the Kurdistan Region of Iraq, ExxonMobil has continued exploration activities.

ExxonMobil’s net acreage totaled 36 thousand onshore acres at year-end 2021.

Oil field rehabilitation activities continued during 2021 and across the life of this project will include drilling of new wells;

working over of existing wells;

and optimization, debottlenecking and expansion of facilities.

ExxonMobil’s net acreage totaled 0.3 million acres, of which 0.2 million net acres were offshore at year-end 2021.

2 unchanged sentences

ExxonMobil’s interests in production sharing contracts covered 0.2 million net acres offshore at year-end 2021.

During the year, a total of 2.0 net development wells were completed.

In 2020, ExxonMobil relinquished approximately 2.3 million net acres in three Sabah offshore blocks.

Through our joint ventures with Qatar Petroleum, ExxonMobil’s net acreage totaled 65 thousand acres offshore at year-end 2020.

Through our joint ventures with Qatar Energy, ExxonMobil’s net acreage totaled 65 thousand acres offshore at year-end 2021.

ExxonMobil participated in 62.2 million tonnes per year gross liquefied natural gas capacity and 3.4 billion cubic feet per day of flowing gas capacity at year-end.

During the year, a total of 0.3 net development well was completed.

The Barzan project started up in 2020.

During the year, a total of 4.8 net development wells were completed.

The North Field Production Sustainment Integrated Drilling and Looping project was funded in 2021.

Effective January 1, 2022, ExxonMobil no longer participates in the Qatar Liquefied Gas Company Limited (QG1) venture, representing 3.6 thousand net acres and 9.9 million tonnes per year gross liquefied natural gas capacity.

ExxonMobil’s net acreage holdings in Sakhalin totaled 85 thousand offshore acres at year-end 2021.

During the year, a total of 2.7 net exploration and development wells were completed.

During the year, a total of 0.9 net development wells were completed.

ExxonMobil’s net onshore acreage in Thailand concessions totaled 16 thousand acres at year-end 2021.

During the year, a total of 0.5 net exploration and development wells were completed.

During the year, a total of 0.2 development wells were completed.

United Arab Emirates

1 unchanged sentence

During the year, a total of 0.6 net development wells were completed.

The Upper Zakum 750 project started up in 2020 while commissioning continued on the final systems.

Development activities continued on the Upper Zakum 1 MBD project.

Development activities continued on the Upper Zakum 1 MBD Sustainment project.

AUSTRALIA / OCEANIA

ExxonMobil’s net acreage totaled 1.8 million acres offshore and 10 thousand acres onshore at year-end 2021.

During the year, a total of 3.8 net development wells were completed.

Development activities continued on the West Barracouta project during the year.

The co-venturer-operated Gorgon Jansz liquefied natural gas (LNG) development consists of a subsea infrastructure for offshore production and transportation of the gas, a 15.6 million tonnes per year LNG facility and a 280 million cubic feet per day domestic gas plant located on Barrow Island, Western Australia.

The Jansz-Io Compression project was funded in 2021.

Development activities continued on the Gorgon Stage 2 project during the year.

1 unchanged sentence

ExxonMobil’s net acreage totaled 3.4 million acres, of which 1.2 million net acres were offshore at year-end 2021.

During the year, a total of 0.8 net exploration and development wells were completed.

In 2020, ExxonMobil relinquished approximately 1.4 million net onshore acres.

In 2021, ExxonMobil relinquished 2.1 million net offshore acres.

The Papua New Guinea (PNG) liquefied natural gas integrated development includes gas production and processing facilities in the southern PNG Highlands, onshore and offshore pipelines, and a 6.9 million tonnes per year liquefied natural gas facility near Port Moresby.

1 unchanged sentence

At year-end 2021, exploration activities were under way in several areas in which ExxonMobil has no established production operations and thus are not included above.

A total of 29.8 million net acres were held at year-end 2020 and 0.7 net exploration wells were completed during the year in these countries.

A total of 18.3 million net acres were held at year-end 2021.

Delivery Commitments

48 unchanged sentences

Total gross and net developed acreage 29,679 14,537 30,914 15,164

(1) Includes developed acreage in Other Americas of 490 gross and 311 net thousands of acres for 2020 and 472 gross and 295 net thousands of acres for 2019.

(1) Includes developed acreage in Other Americas of 490 gross and 311 net thousands of acres for 2021 and 2020.

Separate acreage data for oil and gas are not maintained because, in many instances, both are produced from the same acreage.

18 unchanged sentences

Africa 596 149 596 149

Asia — — 73 5

Total Equity Companies 1,351 352 1,521 427

Total gross and net undeveloped acreage 92,525 46,891 110,940 59,500

(1) Includes undeveloped acreage in Other Americas of 26,084 gross and 12,471 net thousands of acres for 2020 and 25,327 gross and 12,065 net thousands of acres for 2019.

(1) Includes undeveloped acreage in Other Americas of 26,084 gross and 12,471 net thousands of acres for 2021 and 2020.

ExxonMobil’s investment in developed and undeveloped acreage is comprised of numerous concessions, blocks, and leases.

23 unchanged sentences

Two onshore exploration concessions were initially granted prior to the amendment and are governed under Provincial Law with expiration terms through 2024.

The exploration and production of oil and gas are governed by concession contracts and production sharing contracts.

Concession contracts provide for an exploration period of up to 8 years and a production period of 27 years.

Production sharing contracts provide for an exploration period of up to 7 years and a production period of up to 28 years.

The Petroleum (Exploration and Production) Act authorizes the government of Guyana to grant petroleum prospecting and production licenses and to enter into petroleum agreements for the exploration and production of hydrocarbons.

18 unchanged sentences

The majority of traditional licenses currently issued have an initial exploration term of four years with a second term extension of four years, and a final production term of 18 years, with a mandatory relinquishment of 50 percent of the acreage after the initial term and of all acreage that is not covered by a development plan at the end of the second term.

Terms for exploration acreage in technically challenged areas are governed by frontier production licenses, generally covering a larger initial area than traditional licenses, with an initial exploration term of six or nine years with a second term extension of six years, and a final production term of 18 years, with relinquishment of 75 percent of the original area after three years and 50 percent of the remaining acreage after the next three years.

Innovate licenses issued replace traditional and frontier licenses and offer greater flexibility with respect to periods and work program commitments.

Exploration and production activities are governed by either production sharing agreements or other contracts with initial exploration terms ranging from three to four years with options to extend from one to five years.

4 unchanged sentences

Equatorial Guinea

Exploration, development and production activities are governed by production sharing contracts (PSCs) negotiated with the State Ministry of Mines and Hydrocarbons.

A new PSC was ratified in 2018;

the initial exploration period is five years for oil and gas, with multi-year extensions available at the discretion of the Ministry and limited relinquishments in the absence of commercial discoveries.

The production period for crude oil ranges from 25 to 30 years, while the production period for natural gas ranges from 25 to 50 years.

Exploration, development and production activities are governed by production sharing contracts negotiated with the State Ministry of Mines and Hydrocarbons.

The production period for crude oil is 30 years.

Exploration and production activities are generally governed by concession contracts with the Government of the Republic of Mozambique, represented by the Ministry of Mineral Resources and Energy.

3 unchanged sentences

In 2018, an interest was acquired in offshore blocks, A5-B, Z5-C and Z5-D.

Terms for the three blocks are governed by their respective EPCCs, which have an initial exploration phase that expires in 2022 with the possibility of two additional exploration phases expiring in 2024 and 2026.

Terms for the three blocks are governed by their respective EPCCs, with blocks Z5-C and Z5-D having an initial exploration phase that expires in 2022 and block A5-B's initial exploration phase expiring in 2023 after being granted a one-year extension.

The EPCCs provide a development and production period that expires 30 years after the approval of a plan of development.

3 unchanged sentences

Upon commercial discovery, an OPL may be converted to an OML.

Partial relinquishment is required under the PSC at the end of the 10-year exploration period, and OMLs have a 20-year production period that may be extended.

Partial relinquishment is required under the PSC at the end of the 10-year exploration period, and OMLs have a 20-year production period that may be extended, subject to the partial relinquishment provision of the Petroleum Industry Act (PIA) enacted on August 16, 2021.

Some exploration activities are carried out in deepwater by joint ventures with local companies holding interests in an OPL.

8 unchanged sentences

The PSA was amended in September 2017 to extend the term by 25 years to 2049.

Other exploration and production activities are governed by PSAs negotiated with the national oil company of Azerbaijan.

The exploration period typically consists of three or four years with the possibility of a one to three-year extension.

The production period, which includes development, is for 25 years or 35 years with the possibility of one or two five-year extensions.

Exploration and production activities in Indonesia are generally governed by cooperation contracts, usually in the form of a production sharing contract (PSC), negotiated with BPMIGAS, a government agency established in 2002 to manage upstream oil and gas activities.

1 unchanged sentence

By presidential decree, SKKMIGAS became the interim successor to BPMIGAS.

The current PSCs have an exploration period of six years, which can be extended up to 10 years, and an exploitation period of 20 years.

PSCs generally require the contractor to relinquish 10 to 20 percent of the contract area after three years and generally allow the contractor to retain no more than 50 to 80 percent of the original contract area after six years, depending on the acreage and terms.

The current PSCs have an exploration period of six years, which can be extended once for a period of four years with a total contract period of 30 years including an exploitation period.

PSC terms can be extended for a maximum of 20 years for each extension with the approval of the government.

Development and production activities in the state-owned oil and gas fields are governed by contracts with regional oil companies of the Iraqi Ministry of Oil.

2 unchanged sentences

The contract provides for cost recovery plus per-barrel fees for incremental production above specified levels.

Exploration and production activities in the Kurdistan Region of Iraq are governed by production sharing contracts (PSCs) negotiated with the regional government of Kurdistan in 2011.

The exploration term is for five years, with extensions available as provided by the PSCs and at the discretion of the regional government of Kurdistan.

Current PSCs remain in effect by agreement of the regional government to allow additional time for exploration or evaluation of commerciality.

The production period is 20 years with the right to extend for five years.

Onshore exploration and production activities are governed by the production license, exploration license, and joint venture agreements negotiated with the Republic of Kazakhstan.

7 unchanged sentences

The State of Qatar grants gas production development project rights to develop and supply gas from the offshore North Field to permit the economic development and production of gas reserves sufficient to satisfy the gas and LNG sales obligations of these projects.

The initial terms for these rights generally extend for 25 years.

Extensions and terms are subject to State of Qatar approval.

Terms for ExxonMobil’s Sakhalin acreage are fixed by the current production sharing agreement between the Russian government and the Sakhalin-1 consortium, of which ExxonMobil is the operator.

The Petroleum Act of 1971 allows production under ExxonMobil’s concessions for 30 years with a 10-year extension at terms generally prevalent at the time.

The term of one of the two concessions expires in 2021.

In 2021, one concession was extended to 2031.

United Arab Emirates

14 unchanged sentences

Petroleum development licenses are granted for an initial 25-year period.

An extension of up to 20 years may be granted at the Minister’s discretion.

An extension for further consecutive period(s) of up to 20 years may be granted at the Minister’s discretion.

Petroleum retention licenses may be granted for gas resources that are not commercially viable at the time of application, but may become commercially viable within the maximum possible retention time of 15 years.

Petroleum retention licenses are granted for five-year terms, and may be extended, at the Minister’s discretion, twice for the maximum retention time of 15 years.

Extensions of petroleum retention licenses may be for periods of less than one year, renewable annually, if the Minister considers at the time of extension that the resources could become commercially viable in less than five years.

Information with regard to the Downstream segment follows:

20 unchanged sentences

Rotterdam Netherlands 192 100

Slagen Norway 116 100

Fawley United Kingdom 262 100

Total Europe 1,348

Australia 88 100

Fujian China 67 25

9 unchanged sentences

For companies owned 50 percent or less, ExxonMobil share is the greater of ExxonMobil’s interest or that portion of distillation capacity normally available to ExxonMobil.

(3) The Corporation expects to convert the Altona refinery into a terminal in 2021.

The marketing operations sell products and services throughout the world through our Exxon , Esso and Mobil brands.

34 unchanged sentences

Beaumont Texas 0.9 1.7 — 0.3 100

Corpus Christi Texas 0.9 0.7 — — 50

Mont Belvieu Texas — 2.3 — — 100

17 unchanged sentences

For companies owned 50 percent or less, capacity is ExxonMobil’s interest.

Due to rounding, numbers presented above may not add up precisely to the totals indicated.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties