Item 2. Properties
ITEM 2. PROPERTIES
Information with regard to oil and gas producing activities follows:
1. Disclosure of Reserves
A. Summary of Oil and Gas Reserves at Year-End 2022
The table below summarizes the oil-equivalent proved reserves in each geographic area and by product type for consolidated subsidiaries and equity companies. Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels. 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. No major discovery or other favorable or adverse event has occurred since December 31, 2022 that would cause a significant change in the estimated proved reserves as of that date.
Proved Reserves Crude
Oil Natural Gas
Liquids Bitumen Synthetic
Oil Natural
Gas Oil-Equivalent
Total
All Products
(million bbls) (million bbls) (million bbls) (million bbls) (billion cubic ft) (million bbls)
Developed
Consolidated Subsidiaries
United States 1,174 514 — — 9,577 3,284
Canada/Other Americas (1)
377 1 2,288 248 371 2,976
Europe 5 — — — 408 73
Africa 236 23 — — 307 310
Asia 2,020 47 — — 2,037 2,407
Australia/Oceania 38 12 — — 3,162 577
Total Consolidated 3,850 597 2,288 248 15,862 9,627
Equity Companies
United States 119 7 — — 127 147
Europe 2 — — — 326 56
Africa 5 — — — 663 116
Asia 235 125 — — 5,020 1,197
Total Equity Company 361 132 — — 6,136 1,516
Total Developed 4,211 729 2,288 248 21,998 11,143
Undeveloped
Consolidated Subsidiaries
United States 1,030 538 — — 4,068 2,246
Canada/Other Americas (1)
568 — 132 105 337 861
Europe — — — — 5 1
Africa 35 — — — 5 36
Asia 774 39 — — 1,024 983
Australia/Oceania 28 2 — — 2,846 504
Total Consolidated 2,435 579 132 105 8,285 4,631
Equity Companies
United States — — — — — —
Europe — — — — 54 9
Africa — — — — — —
Asia 521 223 — — 7,289 1,959
Total Equity Company 521 223 — — 7,343 1,968
Total Undeveloped 2,956 802 132 105 15,628 6,599
Total Proved Reserves 7,167 1,531 2,420 353 37,626 17,742
(1) Other Americas includes proved developed reserves of 243 million barrels of crude oil and 191 billion cubic feet of natural gas, as well as proved undeveloped reserves of 549 million barrels of crude oil and 311 billion cubic feet of natural gas.
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In the preceding reserves information, consolidated subsidiary and equity company reserves are reported separately. However, the Corporation operates its business with the same view of equity company reserves as it has for reserves from consolidated subsidiaries.
The Corporation anticipates several projects will come online over the next few years providing additional production capacity. However, actual volumes will vary from year to year due to the timing of individual project start-ups; operational outages; reservoir performance; regulatory changes; the impact of fiscal and commercial terms; asset sales; weather events; price effects on production sharing contracts; changes in the amount and timing of capital investments that may vary depending on the oil and gas price environment; international trade patterns and relations; and other factors described in Item 1A. Risk Factors.
The estimation of proved reserves, which is based on the requirement of reasonable certainty, is an ongoing process based on rigorous technical evaluations, commercial and market assessments and detailed analysis of well and reservoir information such as flow rates and reservoir pressures. Furthermore, the Corporation only records proved reserves for projects which have received significant funding commitments by management toward the development of the reserves. Although the Corporation is reasonably certain that proved reserves will be produced, the timing and amount recovered can be affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, and significant changes in crude oil and natural gas price levels. 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.
B. Technologies Used in Establishing Proved Reserves Additions in 2022
Additions to ExxonMobil’s proved reserves in 2022 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well-established technologies that have been demonstrated in the field to yield repeatable and consistent results.
Data used in these integrated assessments included information obtained directly from the subsurface via wellbores, such as well logs, reservoir core samples, fluid samples, static and dynamic pressure information, production test data, and surveillance and performance information. 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 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.
C. Qualifications of Reserves Technical Oversight Group and Internal Controls over Proved Reserves
ExxonMobil has a dedicated Global Reserves and Resources group that provides technical oversight and is separate from the operating organization. Primary responsibilities of this group include oversight of the reserves estimation process for compliance with Securities and Exchange Commission (SEC) rules and regulations, review of annual changes in reserves estimates, and the reporting of ExxonMobil’s proved reserves. This group also maintains the official company reserves estimates for ExxonMobil’s proved reserves of crude oil, natural gas liquids, bitumen, synthetic oil, and natural gas. In addition, the group provides training to personnel involved in the reserves estimation and reporting process within ExxonMobil and its affiliates. The Global Reserves and Resources Manager 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. This group includes individuals who hold degrees in either Engineering or Geology.
The Global Reserves and Resources group maintains a central database containing the official company reserves estimates. Appropriate controls, including limitations on database access and update capabilities, are in place to ensure data integrity within this central database. An annual review of the system’s controls is performed by internal audit. Key components of the reserves estimation process include technical evaluations, commercial and market assessments, analysis of well and field performance, and long-standing approval guidelines. No changes may be made to the reserves estimates in the central database, including additions of any new initial reserves estimates or subsequent revisions, unless these changes have been thoroughly reviewed and evaluated by duly authorized geoscience and engineering professionals within the operating organization. In addition, changes to reserves estimates that exceed certain thresholds require further review and approval by the appropriate level of management within the operating organization before the changes may be made in the central database. Endorsement by the Global Reserves and Resources group for all proved reserves changes is a mandatory component of this review process. After all changes are made, reviews are held with senior management for final endorsement.
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2. Proved Undeveloped Reserves
At year-end 2022, approximately 6.6 billion oil-equivalent barrels (GOEB) of ExxonMobil’s proved reserves were classified as proved undeveloped. This represents 37 percent of the 17.7 GOEB reported in proved reserves. This compares to 6.3 GOEB of proved undeveloped reserves reported at the end of 2021. During the year, ExxonMobil conducted development activities that resulted in the transfer of approximately 1.0 GOEB from proved undeveloped to proved developed reserves by year end. The largest transfers were related to development activities in the United States, Mozambique, Guyana, and the United Arab Emirates. During 2022, extensions and discoveries, primarily in the United States and Guyana, resulted in the addition of approximately 1.4 GOEB of proved undeveloped reserves, along with an increase of approximately 0.7 GOEB due to purchases in Asia. Also, the Corporation reclassified approximately 0.8 GOEB of proved undeveloped reserves which no longer met the SEC definition of proved reserves, primarily in the United States and Canada.
Overall, investments of $12.1 billion were made by the Corporation during 2022 to progress the development of reported proved undeveloped reserves, including $12.0 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. These investments represented 71 percent of the $17.0 billion in total reported Upstream capital and exploration expenditures.
One of ExxonMobil’s requirements for reporting proved reserves is that management has made significant funding commitments toward the development of the reserves. ExxonMobil has a disciplined investment strategy and many major fields require long lead-time in order to be developed. 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. The Corporation is reasonably certain that these proved reserves will be produced; however, the timing and amount recovered can be affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, the pace of co-venturer/government funding, changes in the amount and timing of capital investments, and significant changes in crude oil and natural gas price levels. Of the proved undeveloped reserves that have been reported for five or more years, over 80 percent are contained in the aforementioned countries. In Australia, proved undeveloped reserves are associated with future compression for the Gorgon Jansz LNG project. 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. The Tengizchevroil joint venture is producing, and proved undeveloped reserves will continue to move to proved developed as approved development phases progress. In the United Arab Emirates, proved undeveloped reserves are associated with an approved development plan and continued drilling investment for the producing Upper Zakum field.
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3. Oil and Gas Production, Production Prices and Production Costs
A. Oil and Gas Production
The table below summarizes production by final product sold and by geographic area for the last three years.
(thousands of barrels daily) 2022 2021 2020
Crude Oil NGL Crude Oil NGL Crude Oil NGL
Crude oil and natural gas liquids production
Consolidated Subsidiaries
United States 523 211 482 195 481 154
Canada/Other Americas (1)
196 2 130 3 121 5
Europe 2 — 16 3 22 5
Africa 233 5 241 7 301 11
Asia 407 23 407 21 449 23
Australia/Oceania 27 16 28 15 29 15
Total Consolidated Subsidiaries 1,388 257 1,304 244 1,403 213
Equity Companies
United States 41 1 43 1 49 1
Europe 2 — 3 — 3 —
Africa — — — — — —
Asia 216 59 207 60 208 62
Total Equity Companies 259 60 253 61 260 63
Total crude oil and natural gas liquids production 1,647 317 1,557 305 1,663 276
Bitumen production
Consolidated Subsidiaries
Canada/Other Americas 327 365 342
Synthetic oil production
Consolidated Subsidiaries
Canada/Other Americas 63 62 68
Total liquids production 2,354 2,289 2,349
(millions of cubic feet daily)
Natural gas production available for sale
Consolidated Subsidiaries
United States 2,531 2,724 2,668
Canada/Other Americas (1)
148 195 277
Europe 306 377 447
Africa 64 43 9
Asia 779 807 872
Australia/Oceania 1,440 1,280 1,219
Total Consolidated Subsidiaries 5,268 5,426 5,492
Equity Companies
United States 20 22 23
Europe 361 431 342
Africa 7 — —
Asia 2,639 2,658 2,614
Total Equity Companies 3,027 3,111 2,979
Total natural gas production available for sale 8,295 8,537 8,471
(thousands of oil-equivalent barrels daily)
Oil-equivalent production 3,737 3,712 3,761
(1) Other Americas includes crude oil production for 2022, 2021, and 2020 of 120 thousand, 48 thousand, and 29 thousand barrels daily, respectively; and natural gas production available for sale for 2022, 2021, and 2020 of 45 million, 36 million, and 45 million cubic feet daily, respectively.
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B. Production Prices and Production Costs
The table below summarizes average production prices and average production costs by geographic area and by product type for the last three years.
(dollars per unit) United
States Canada/
Other
Americas Europe Africa Asia Australia/
Oceania Total
2022
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel 93.60 97.05 91.32 103.45 94.94 94.43 96.16
NGL, per barrel 38.54 45.22 71.43 57.83 35.77 46.91 39.37
Natural gas, per thousand cubic feet 5.37 4.40 21.17 2.57 2.60 11.47 7.48
Bitumen, per barrel — 64.12 — — — — 64.12
Synthetic oil, per barrel — 96.08 — — — — 96.08
Average production costs, per oil-equivalent barrel - total 9.40 24.63 23.77 21.68 7.31 4.97 13.09
Average production costs, per barrel - bitumen — 29.90 — — — — 29.90
Average production costs, per barrel - synthetic oil — 51.52 — — — — 51.52
Equity Companies
Average production prices
Crude oil, per barrel 94.58 — 90.91 60.00 94.32 — 94.32
NGL, per barrel 39.53 — — — 59.52 — 59.05
Natural gas, per thousand cubic feet 5.49 — 21.10 2.72 13.08 — 13.97
Average production costs, per oil-equivalent barrel - total 40.42 — 26.86 42.24 1.45 — 5.57
Total
Average production prices
Crude oil, per barrel 93.67 97.05 91.15 103.42 94.73 94.43 95.88
NGL, per barrel 38.55 45.22 71.43 57.83 52.85 46.91 43.09
Natural gas, per thousand cubic feet 5.37 4.40 21.14 2.59 10.70 11.47 9.85
Bitumen, per barrel — 64.12 — — — — 64.12
Synthetic oil, per barrel — 96.08 — — — — 96.08
Average production costs, per oil-equivalent barrel - total 10.57 24.63 25.43 21.79 4.02 4.97 11.43
Average production costs, per barrel - bitumen — 29.90 — — — — 29.90
Average production costs, per barrel - synthetic oil — 51.52 — — — — 51.52
2021
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel 65.03 68.56 66.20 70.21 67.28 69.00 67.14
NGL, per barrel 32.24 30.51 42.31 54.57 32.62 43.07 33.65
Natural gas, per thousand cubic feet 3.02 2.92 11.83 1.67 2.11 6.64 4.33
Bitumen, per barrel — 44.26 — — — — 44.26
Synthetic oil, per barrel — 64.73 — — — — 64.73
Average production costs, per oil-equivalent barrel - total 8.33 22.47 25.31 18.92 7.16 5.14 12.15
Average production costs, per barrel - bitumen — 22.69 — — — — 22.69
Average production costs, per barrel - synthetic oil — 48.87 — — — — 48.87
Equity Companies
Average production prices
Crude oil, per barrel 67.06 — 62.60 — 65.85 — 66.01
NGL, per barrel 29.94 — — — 52.14 — 51.64
Natural gas, per thousand cubic feet 3.11 — 8.19 — 6.54 — 6.74
Average production costs, per oil-equivalent barrel - total 30.51 — 38.82 — 1.59 — 6.67
Total
Average production prices
Crude oil, per barrel 65.20 68.56 65.54 70.21 66.80 69.00 66.96
NGL, per barrel 32.23 30.51 42.31 54.57 47.10 43.07 37.27
Natural gas, per thousand cubic feet 3.02 2.92 9.89 1.67 5.50 6.64 5.21
Bitumen, per barrel — 44.26 — — — — 44.26
Synthetic oil, per barrel — 64.73 — — — — 64.73
Average production costs, per oil-equivalent barrel - total 9.24 22.47 31.79 19.04 4.06 5.14 10.92
Average production costs, per barrel - bitumen — 22.69 — — — — 22.69
Average production costs, per barrel - synthetic oil — 48.87 — — — — 48.87
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(dollars per unit) United
States Canada/
Other
Americas Europe Africa Asia Australia/
Oceania Total
2020
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel 34.97 37.26 41.39 42.27 39.39 36.67 38.31
NGL, per barrel 13.83 10.34 20.11 21.32 21.37 27.92 16.05
Natural gas, per thousand cubic feet 0.98 1.56 3.13 1.24 1.49 4.34 2.01
Bitumen, per barrel — 17.71 — — — — 17.71
Synthetic oil, per barrel — 37.32 — — — — 37.32
Average production costs, per oil-equivalent barrel - total 9.82 18.40 21.22 16.67 6.50 5.35 11.57
Average production costs, per barrel - bitumen — 19.22 — — — — 19.22
Average production costs, per barrel - synthetic oil — 33.61 — — — — 33.61
Equity Companies
Average production prices
Crude oil, per barrel 39.10 — 38.95 — 35.18 — 35.97
NGL, per barrel 11.05 — — — 30.02 — 29.58
Natural gas, per thousand cubic feet 1.19 — 3.85 — 3.14 — 3.20
Average production costs, per oil-equivalent barrel - total 25.13 — 30.74 — 1.63 — 5.34
Total
Average production prices
Crude oil, per barrel 35.35 37.26 41.11 42.27 38.07 36.67 37.95
NGL, per barrel 13.80 10.34 20.11 21.32 27.65 27.92 19.16
Natural gas, per thousand cubic feet 0.98 1.56 3.44 1.24 2.72 4.34 2.43
Bitumen, per barrel — 17.71 — — — — 17.71
Synthetic oil, per barrel — 37.32 — — — — 37.32
Average production costs, per oil-equivalent barrel - total 10.55 18.40 24.76 16.73 3.91 5.35 10.21
Average production costs, per barrel - bitumen — 19.22 — — — — 19.22
Average production costs, per barrel - synthetic oil — 33.61 — — — — 33.61
Average production prices have been calculated by using sales quantities from the Corporation’s own production as the divisor. Average production costs have been computed by using net production quantities for the divisor. The volumes of crude oil and natural gas liquids (NGL) production used for this computation are shown in the oil and gas production table in section 3.A. The volumes of natural gas used in the calculation are the production volumes of natural gas available for sale and are also shown in section 3.A. The natural gas available for sale volumes are different from those shown in the reserves table in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report due to volumes consumed or flared. Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
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4. Drilling and Other Exploratory and Development Activities
A. Number of Net Productive and Dry Wells Drilled
2022 2021 2020
Net Productive Exploratory Wells Drilled
Consolidated Subsidiaries
United States 1 1 4
Canada/Other Americas 3 5 2
Europe — — —
Africa — — 1
Asia — — —
Australia/Oceania — — —
Total Consolidated Subsidiaries 4 6 7
Equity Companies
United States — — —
Europe — — —
Africa — — —
Asia — — —
Total Equity Companies — — —
Total productive exploratory wells drilled 4 6 7
Net Dry Exploratory Wells Drilled
Consolidated Subsidiaries
United States — 1 —
Canada/Other Americas 4 3 1
Europe — — —
Africa — — —
Asia — — 1
Australia/Oceania — — —
Total Consolidated Subsidiaries 4 4 2
Equity Companies
United States — — —
Europe — — —
Africa — — —
Asia — — —
Total Equity Companies — — —
Total dry exploratory wells drilled 4 4 2
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2022 2021 2020
Net Productive Development Wells Drilled
Consolidated Subsidiaries
United States 473 433 412
Canada/Other Americas 33 28 36
Europe — 1 2
Africa 3 1 2
Asia 5 4 15
Australia/Oceania — — 4
Total Consolidated Subsidiaries 514 467 471
Equity Companies
United States 49 13 60
Europe — 1 1
Africa — 1 —
Asia 10 5 5
Total Equity Companies 59 20 66
Total productive development wells drilled 573 487 537
Net Dry Development Wells Drilled
Consolidated Subsidiaries
United States — 4 6
Canada/Other Americas — — —
Europe — — —
Africa — — —
Asia — — —
Australia/Oceania — — 1
Total Consolidated Subsidiaries — 4 7
Equity Companies
United States — — —
Europe — — —
Africa — — —
Asia — — —
Total Equity Companies — — —
Total dry development wells drilled — 4 7
Total number of net wells drilled 581 501 553
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B. Exploratory and Development Activities Regarding Oil and Gas Resources Extracted by Mining Technologies
Syncrude Operations. Syncrude is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to extract the crude bitumen, and then upgrade it to produce a high-quality, light (32 degrees API), sweet, synthetic crude oil. Imperial Oil Limited is the owner of a 25 percent interest in the joint venture. Exxon Mobil Corporation has a 69.6 percent interest in Imperial Oil Limited. In 2022, the company’s share of net production of synthetic crude oil was about 63 thousand barrels per day and share of net acreage was about 55 thousand acres in the Athabasca oil sands deposit.
Kearl Operations. Kearl is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to extract the crude bitumen. Imperial Oil Limited holds a 70.96 percent interest in the joint venture and ExxonMobil Canada Properties holds the other 29.04 percent. Exxon Mobil Corporation has a 69.6 percent interest in Imperial Oil Limited and a 100 percent interest in ExxonMobil Canada Properties. Kearl is comprised of six oil sands leases covering about 49 thousand acres in the Athabasca oil sands deposit.
Kearl is located approximately 40 miles north of Fort McMurray, Alberta, Canada. Bitumen is extracted from oil sands and processed through bitumen extraction and froth treatment trains. The product, a blend of bitumen and diluent, is shipped to our refineries and to other third parties. Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation by pipeline and rail. During 2022, average net production at Kearl was about 221 thousand barrels per day.
5. Present Activities
A. Wells Drilling
Wells Drilling Year-End 2022
Year-End 2021
Gross Net Gross Net
Consolidated Subsidiaries
United States 804 472 1,059 588
Canada/Other Americas 54 40 44 33
Europe 2 1 2 1
Africa 10 2 11 2
Asia 18 5 11 3
Australia/Oceania 1 — — —
Total Consolidated Subsidiaries 889 520 1,127 627
Equity Companies
United States 13 2 12 —
Europe — — — —
Africa — — — —
Asia 8 3 2 1
Total Equity Companies 21 5 14 1
Total gross and net wells drilling 910 525 1,141 628
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B. Review of Principal Ongoing Activities
United States
ExxonMobil’s year-end 2022 acreage holdings totaled 9.5 million net acres, of which 0.2 million net acres were offshore. In 2022, ExxonMobil relinquished 1 million net acres, of which 0.2 million were offshore. ExxonMobil was active in areas onshore and offshore in the lower 48 states and in Alaska. Development activities continued on the Golden Pass liquefied natural gas export project.
During the year, a total of 519.9 net exploratory 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 2022 was 0.1 million acres. A total of 0.9 net development wells were completed during the year.
Participation in Alaska production and development continued with a total of 2.6 net development wells completed.
Canada / Other Americas
Canada
Oil and Gas Operations: ExxonMobil’s year-end 2022 acreage holdings totaled 4.3 million net acres, of which 2.5 million net acres were offshore. In 2022, ExxonMobil relinquished 2.5 million net acres, of which 1.5 million were offshore. A total of 1.3 net exploratory and development wells were completed during the year.
In Situ Bitumen Operations: ExxonMobil’s year-end 2022 in situ bitumen acreage holdings totaled 0.5 million net onshore acres. A total of 24 net development wells at Cold Lake were completed during the year.
Argentina
ExxonMobil’s net acreage totaled 2.9 million acres at year-end 2022, of which 2.6 million net acres were offshore. During the year, a total of 5.4 net development wells were completed.
Brazil
ExxonMobil’s net acreage totaled 2.6 million offshore acres at year-end 2022. During the year, a total of 1.5 net exploratory wells were completed. Development activities continued on the Bacalhau Phase 1 project.
Guyana
ExxonMobil’s net acreage totaled 4.6 million offshore acres at year-end 2022. During the year, a total of 6 net exploratory and development wells were completed. The Liza Phase 2 Unity floating production, storage and offloading vessel commenced operations, and development activities continued on the Payara project. The Yellowtail project was funded in 2022.
Europe
Germany
ExxonMobil’s net acreage totaled 1.4 million onshore acres at year-end 2022.
Netherlands
ExxonMobil’s net interest in licenses totaled 1.4 million acres at year-end 2022, of which 0.4 million acres were offshore. During the year, a total of 0.2 net development well was completed. In 2022, the Dutch Government further reduced Groningen gas extraction and continues to evaluate the timing for cessation of production.
United Kingdom
ExxonMobil’s net interest in licenses totaled 0.1 million offshore acres at year-end 2022.
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Africa
Angola
ExxonMobil’s net acreage totaled 3 million acres at year-end 2022, of which 2.9 million net acres were offshore. During the year, a total of 3.3 net exploratory and development wells were completed.
Equatorial Guinea
ExxonMobil’s net acreage totaled 0.1 million offshore acres at year-end 2022.
Mozambique
ExxonMobil’s net acreage totaled 0.7 million offshore acres at year-end 2022. In 2022, ExxonMobil relinquished 1 million net offshore acres outside of the core Area 4 development. The Coral South Floating LNG development began production in October 2022.
Nigeria
ExxonMobil’s net acreage totaled 0.9 million offshore acres at year-end 2022. During the year, a total of 0.4 net exploratory and development wells were completed.
Asia
Azerbaijan
ExxonMobil's net acreage totaled 7 thousand offshore acres at year-end 2022. During the year, a total of 1 net development wells were completed.
Indonesia
ExxonMobil’s net acreage totaled 0.1 million onshore acres at year-end 2022.
Iraq
ExxonMobil’s net acreage totaled 36 thousand onshore acres at year-end 2022. During the year, a total of 0.3 net development well was completed. Oil field rehabilitation activities continued during 2022 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.
Kazakhstan
ExxonMobil’s net acreage totaled 0.3 million acres at year-end 2022, of which 0.2 million net acres were offshore. During the year, a total of 2.3 net development wells were completed. Development activities continued on the Tengiz Expansion project.
Malaysia
ExxonMobil’s interests in production sharing contracts covered 0.2 million net offshore acres at year-end 2022.
Qatar
Through our joint ventures with QatarEnergy, ExxonMobil’s net acreage totaled 80 thousand offshore acres at year-end 2022. ExxonMobil participated in 52.3 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 8.2 net development wells were completed. The North Field Production Sustainment Compression project was funded in 2022. ExxonMobil also announced participation in Qatar's North Field East project via the Qatar Liquefied Gas Company Limited (QG7) venture, representing 18.5 thousand net acres and 8 million tonnes per year gross liquefied natural gas capacity expected to begin in 2026.
Russia
Effective October 14, 2022, the Russian government unilaterally terminated the Corporation's interests in Sakhalin, transferring operations to a Russian operator.
Refer to "Note 2: Russia" of the Financial Section of this report for additional information.
Thailand
ExxonMobil’s net onshore acreage in Thailand concessions totaled 16 thousand acres at year-end 2022. During the year, a total of 0.1 net development well was completed.
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United Arab Emirates
ExxonMobil’s net acreage in the Abu Dhabi offshore Upper Zakum oil concession was 81 thousand acres at year-end 2022. During the year, a total of 2.8 net development wells were completed. Development activities continued on the Upper Zakum 1 MBD Sustainment project.
Australia / Oceania
Australia
ExxonMobil’s net acreage totaled 1.2 million offshore acres and 10 thousand onshore acres at year-end 2022. In 2022, 0.6 million net offshore acres were relinquished.
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. Development activities continued on the Gorgon Stage 2 project and Jansz Io Compression project during the year.
Papua New Guinea
ExxonMobil’s net acreage totaled 2.1 million onshore acres at year-end 2022. In 2022, ExxonMobil relinquished 1.2 million net offshore acres. The Papua New Guinea (PNG) liquefied natural gas integrated development includes gas production and processing facilities in the PNG Highlands, onshore and offshore pipelines, and a 6.9 million tonnes per year liquefied natural gas facility near Port Moresby.
Worldwide Exploration
At year-end 2022, 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 18.8 million net acres were held at year-end 2022 and 1.2 net exploratory wells were completed during the year in these countries.
6. Delivery Commitments
ExxonMobil sells crude oil and natural gas from its producing operations under a variety of contractual obligations, some of which may specify the delivery of a fixed and determinable quantity for periods longer than one year. ExxonMobil also enters into natural gas sales contracts where the source of the natural gas used to fulfill the contract can be a combination of our own production and the spot market. Worldwide, we are contractually committed to deliver approximately 36 million barrels of oil and 2.3 trillion cubic feet of natural gas for the period from 2023 through 2025. We expect to fulfill the majority of these delivery commitments with production from our proved developed reserves. Any remaining commitments will be fulfilled with production from our proved undeveloped reserves and purchases on the open market as necessary.
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7. Oil and Gas Properties, Wells, Operations and Acreage
A. Gross and Net Productive Wells
Gross and Net Productive Wells Year-End 2022
Year-End 2021
Oil Gas Oil Gas
Gross Net Gross Net Gross Net Gross Net
Consolidated Subsidiaries
United States 19,006 7,576 11,495 7,516 19,401 7,566 18,670 10,773
Canada/Other Americas 4,394 4,310 2,903 1,033 4,656 4,548 3,209 1,247
Europe 536 127 433 205 439 116 441 207
Africa 590 191 24 10 1,102 416 24 10
Asia 999 318 147 86 1,038 333 137 80
Australia/Oceania 473 89 92 38 522 99 94 40
Total Consolidated Subsidiaries 25,998 12,611 15,094 8,888 27,158 13,078 22,575 12,357
Equity Companies
United States 12,068 4,777 3,341 331 12,108 4,793 3,355 333
Europe 57 20 482 150 57 20 547 171
Africa — — 6 2 — — — —
Asia 233 58 145 33 225 56 168 35
Total Equity Companies 12,358 4,855 3,974 516 12,390 4,869 4,070 539
Total gross and net productive wells 38,356 17,466 19,068 9,404 39,548 17,947 26,645 12,896
There were 19,571 gross and 17,165 net operated wells at year-end 2022 and 23,645 gross and 20,528 net operated wells at year-end 2021. The number of wells with multiple completions was 1,010 gross in 2022 and 1,082 gross in 2021.
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B. Gross and Net Developed Acreage
Gross and Net Developed Acreage
(thousands of acres)
Year-End 2022
Year-End 2021
Gross Net Gross Net
Consolidated Subsidiaries
United States 11,022 6,681 12,180 7,503
Canada/Other Americas (1)
2,113 1,509 2,905 2,075
Europe (2)
1,238 580 1,234 580
Africa 2,186 736 2,409 818
Asia 1,582 462 1,929 557
Australia/Oceania 3,242 1,067 3,242 1,067
Total Consolidated Subsidiaries 21,383 11,035 23,899 12,600
Equity Companies
United States 702 166 687 163
Europe 3,646 1,117 3,646 1,116
Africa 178 44 — —
Asia 665 157 701 160
Total Equity Companies 5,191 1,484 5,034 1,439
Total gross and net developed acreage 26,574 12,519 28,933 14,039
(1) Includes developed acreage in Other Americas of 490 gross and 311 net thousands of acres for 2022 and 2021.
(2) Year-end 2021 developed acreage in Europe was restated for gross and net.
Separate acreage data for oil and gas are not maintained because, in many instances, both are produced from the same acreage.
C. Gross and Net Undeveloped Acreage
Gross and Net Undeveloped Acreage
(thousands of acres)
Year-End 2022
Year-End 2021
Gross Net Gross Net
Consolidated Subsidiaries
United States 6,455 2,587 6,751 2,807
Canada/Other Americas (1)
32,441 15,838 36,764 18,246
Europe (2)
12,592 8,231 14,811 6,163
Africa 20,620 13,113 23,797 15,186
Asia 766 227 766 227
Australia/Oceania 4,811 2,309 8,638 4,112
Total Consolidated Subsidiaries 77,685 42,305 91,527 46,741
Equity Companies
United States 150 61 159 64
Europe 482 131 596 139
Africa 418 104 596 149
Asia 296 19 — —
Total Equity Companies 1,346 315 1,351 352
Total gross and net undeveloped acreage 79,031 42,620 92,878 47,093
(1) Includes undeveloped acreage in Other Americas of 25,096 gross and 11,977 net thousands of acres for 2022 and 26,084 gross and 12,471 net thousands of acres for 2021.
(2) Year-end 2021 undeveloped acreage in Europe was restated for gross and net.
ExxonMobil’s investment in developed and undeveloped acreage is comprised of numerous concessions, blocks, and leases. The terms and conditions under which the Corporation maintains exploration and/or production rights to the acreage are property-specific, contractually defined, and vary significantly from property to property. Work programs are designed to ensure that the exploration potential of any property is fully evaluated before expiration. In some instances, the Corporation may elect to relinquish acreage in advance of the contractual expiration date if the evaluation process is complete and there is not a business basis for extension. In cases where additional time may be required to fully evaluate acreage, the Corporation has generally been successful in obtaining extensions. The scheduled expiration of leases and concessions for undeveloped acreage over the next three years is not expected to have a material adverse impact on the Corporation.
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D. Summary of Acreage Terms
United States
Oil and gas exploration and production rights are acquired from mineral interest owners through a lease. Mineral interest owners include the Federal and State governments, as well as private mineral interest owners. Leases typically have an exploration period ranging from one to 10 years, and a production period that normally remains in effect until production ceases. Under certain circumstances, a lease may be held beyond its exploration term even if production has not commenced. In some instances regarding private property, a “fee interest” is acquired where the underlying mineral interests are owned outright.
Canada / Other Americas
Canada
Exploration licenses or leases in onshore areas are acquired for varying periods of time with renewals or extensions possible. These licenses or leases entitle the holder to continue existing licenses or leases upon completing specified work. In general, these license and lease agreements are held as long as there is proven production capability on the licenses and leases. Exploration licenses in offshore eastern Canada and the Beaufort Sea are held by work commitments of various amounts and rentals. They are valid for a term of nine years. Offshore production licenses are valid for 25 years, with rights of extension for continued production. Significant discovery licenses in the offshore relating to currently undeveloped discoveries do not have a definite term.
Argentina
The Federal Hydrocarbon Law was amended in 2014. Pursuant to the amended law, the production term for an onshore unconventional concession is 35 years and 25 years for a conventional concession, with unlimited 10-year extensions possible once a field has been developed. In 2019, the government granted three offshore exploration licenses, with terms of eight years, divided into two exploration periods of four years, with an optional extension of five years for each license.
Brazil
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 eight years and a production period of 27 years. Production sharing contracts provide for an exploration period of up to seven years and a production period of up to 28 years.
Guyana
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. Petroleum agreements provide for an exploration period of up to 10 years and a production period of 20 years, with a 10-year extension.
Europe
Germany
Exploration concessions are granted for an initial maximum period of five years, with an unlimited number of extensions up to three years each. Extensions are subject to specific minimum work commitments. Production licenses are normally granted for 20 to 25 years with multiple possible extensions subject to production on the license.
Netherlands
Under the Mining Law, effective January 1, 2003, exploration and production licenses for both onshore and offshore areas are issued for a period as explicitly defined in the license. The term is based on the period of time necessary to perform the activities for which the license is issued. License conditions are stipulated in the license and are based on the Mining Law.
Production rights granted prior to January 1, 2003, remain subject to their existing terms and differ slightly for onshore and offshore areas. Onshore production licenses issued prior to 1988 were indefinite; from 1988 they were issued for a period as explicitly defined in the license, ranging from 35 to 45 years. Offshore production licenses issued before 1976 were issued for a fixed period of 40 years; from 1976 they were again issued for a period as explicitly defined in the license, ranging from 15 to 40 years.
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United Kingdom
Acreage terms are fixed by the government and are periodically changed. For example, many of the early licenses issued under the first four licensing rounds provided an initial term of six years with relinquishment of at least one-half of the original area at the end of the initial term, subject to extension for a further 40 years. At the end of any such 40-year term, licenses may continue in producing areas until cessation of production; or licenses may continue in development areas for periods agreed on a case-by-case basis until they become producing areas; or licenses terminate in all other areas. 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.
Africa
Angola
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. The production periods range from 20 to 30 years, and the agreements generally provide for negotiated extensions.
Equatorial Guinea
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.
Mozambique
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. An interest in Area 4 offshore Mozambique was acquired in 2017. Terms for Area 4 are governed by the Exploration and Production Concession Contract (EPCC) for Area 4 Offshore of the Rovuma Block. The EPCC expires 30 years after an approved plan of development becomes effective for a given discovery area.
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, with blocks Z5-C and Z5-D having an initial exploration phase that expired in 2022, resulting in a relinquishment of acreage in those blocks. Block A5-B's initial exploration phase expires in 2023. A5-B's EPCC provides a development and production period that expires 30 years after the approval of a plan of development.
Nigeria
Exploration and production activities in the deepwater offshore areas are typically governed by production sharing contracts (PSCs) with the national oil company, the Nigerian National Petroleum Corporation (NNPC). NNPC typically holds the underlying Oil Prospecting License (OPL) and any resulting Oil Mining Lease (OML). The terms of the PSCs are generally 30 years, including a 10-year exploration period (an initial exploration phase that can be divided into multiple optional periods) covered by an OPL. 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, subject to the partial relinquishment. In August 16, 2021, the Petroleum Industry Act (PIA) was enacted to replace the Petroleum Act of 1969. This granted Petroleum Prospecting Licenses (PPLs - replacing OPLs) with an initial term of five years and optional five-year extension. Petroleum Mining Leases (PMLs - replacing OMLs) are granted for each commercial discovery in the PPL for a 20-year term. The PIA also had a "savings provision" which allowed NNPC to renegotiate its PSCs and renew their OMLs for 20 years under existing 1969 Act terms, within 12 months from the enactment of the PIA. On August 11, 2022, the leases for OML 133 and 138 were renewed under the savings provision.
OMLs granted under the 1969 Petroleum Act, which include all deepwater OMLs, have a maximum term of 20 years without distinction for onshore or offshore location and are renewable, upon 12-months written notice. All future renewals will be conducted under PIA terms.
OMLs granted prior to the 1969 Petroleum Act (i.e., under the Mineral Oils Act 1914, repealed by the 1969 Petroleum Act) were for 30 years onshore and 40 years in offshore areas and have been renewed, effective March 11, 2011, for a further period of 20 years. Operations under these pre-1969 OMLs are conducted under a joint venture agreement with NNPC rather than a PSC. Commercial terms applicable to the existing joint venture oil production are defined by the Petroleum Profits Tax Act (PPT). This was also repealed by the PIA in August 2021 with lease holders having the option to convert to PIA terms or retain PPT terms until their current leases expire.
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Asia
Azerbaijan
The production sharing agreement (PSA) for the development of the Azeri-Chirag-Gunashli field was established for an initial period of 30 years starting from the PSA execution date in 1994. The PSA was amended in September 2017 to extend the term by 25 years to 2049.
Indonesia
Exploration and production activities in Indonesia are generally governed by cooperation contracts, usually in the form of a production sharing contract (PSC). 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.
Iraq
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. An ExxonMobil affiliate entered into a contract with Basra Oil Company of the Iraqi Ministry of Oil for the rights to participate in the development and production activities of the West Qurna Phase I oil and gas field effective March 1, 2010. The term of the contract is 20 years with the right to extend for a period of five to 15 years. The contract provides for cost recovery plus per-barrel fees for incremental production above specified levels.
Kazakhstan
Onshore exploration and production activities are governed by the production license, exploration license, and joint venture agreements negotiated with the Republic of Kazakhstan. Existing production operations have a 40-year production period that commenced in 1993.
Offshore exploration and production activities are governed by a production sharing agreement negotiated with the Republic of Kazakhstan. The exploration period is six years followed by separate appraisal periods for each discovery. The production period for each discovery, which includes development, is 20 years from the date of declaration of commerciality with the possibility of two 10-year extensions.
Malaysia
Production activities are governed by production sharing contracts (PSCs) negotiated with the national oil company. The PSCs have production terms of 25 years. Extensions are generally subject to the national oil company’s prior written approval.
Qatar
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.
Russia
Terms for ExxonMobil’s Sakhalin acreage were fixed by a production sharing agreement between the Russian government and the Sakhalin-1 consortium, of which ExxonMobil was the operator. Effective October 14, 2022, the Russian government unilaterally terminated the Corporation’s interests in Sakhalin, transferring operations to a Russian operator.
Refer to “Note 2: Russia” of the Financial Section of this report for additional information.
Thailand
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.
United Arab Emirates
An interest in the development and production activities of the offshore Upper Zakum field was acquired in 2006. In 2017, the governing agreements were extended to 2051.
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Australia / Oceania
Australia
Exploration and production activities conducted offshore in Commonwealth waters are governed by Federal legislation. Exploration permits are granted for an initial term of six years with two possible five-year renewal periods. Retention leases may be granted for resources that are not commercially viable at the time of application but are likely to become commercially viable within 15 years. These are granted for periods of five years, and renewals may be requested. Prior to July 1998, production licenses were granted initially for 21 years, with a further renewal of 21 years and thereafter indefinitely, i.e., for the life of the field. Effective from July 1998, new production licenses are granted indefinitely. In each case, a production license may be terminated if no production operations have been carried on for five years.
Papua New Guinea
Exploration and production activities are governed by the Oil and Gas Act. Petroleum prospecting licenses are granted for an initial term of six years with a five-year extension possible (an additional extension of three years is possible in certain circumstances). Generally, a 50-percent relinquishment of the license area is required at the end of the initial six-year term, if extended. Petroleum development licenses are granted for an initial 25-year period. 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 an initial five-year period, and may only be extended, at the Minister’s discretion, twice for the maximum retention time of 15 years.
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Information with regard to refining capacity:
ExxonMobil manufactures, trades, and sells petroleum products. The refining and supply operations encompass a global network of manufacturing plants, transportation systems, and distribution centers that provide a range of fuels, lubricants, feedstocks, and other products to our customers around the world.
Refining Capacity At Year-End 2022 (1)
ExxonMobil
Share KBD (2)
ExxonMobil
Interest %
United States
Joliet Illinois n 258 100
Baton Rouge Louisiana n ▲ 523 100
Billings (3)
Montana n 60 100
Baytown Texas n ▲ 565 100
Beaumont Texas n ▲ 369 100
Total United States 1,775
Canada
Strathcona Alberta n 197 69.6
Nanticoke Ontario n 113 69.6
Sarnia Ontario n 123 69.6
Total Canada 433
Europe
Antwerp Belgium n 307 100
Fos-sur-Mer France n 133 82.9
Gravenchon France n ▲ 244 82.9
Karlsruhe Germany n 78 25
Trecate (3)
Italy n 132 75
Rotterdam Netherlands n ▲ 192 100
Fawley United Kingdom n ▲ 262 100
Total Europe 1,348
Asia Pacific
Fujian China n 67 25
Jurong/PAC Singapore n ▲ 592 100
Sriracha (3)
Thailand n 167 66
Total Asia Pacific 826
Middle East
Yanbu Saudi Arabia n 200 50
Total Worldwide 4,582
n Energy Products ▲ Specialty Products
(1) Capacity data is based on 100 percent of rated refinery process unit stream-day capacities under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. The listing excludes refining capacity for a minor interest held through equity securities in the Laffan Refinery in Qatar for which results are reported in the Upstream segment.
(2) Thousands of barrels per day (KBD). ExxonMobil share reflects 100 percent of atmospheric distillation capacity in operations of ExxonMobil and majority-owned subsidiaries. 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 announced sales agreements relating to these assets and expects the transactions to close in 2023.
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Information with regard to retail fuel sites:
Within the Energy Products segment, retail fuels sites sell products and services throughout the world through our Exxon , Esso, and Mobil brands.
Number of Retail Fuel Sites At Year-End 2022
Owned/leased Distributors/resellers Total
United States (1)
— 11,139 11,139
Canada — 2,415 2,415
Europe (2)
197 5,830 6,027
Asia Pacific (3)
563 1,438 2,001
Latin America — 510 510
Middle East/Africa 221 200 421
Worldwide 981 21,532 22,513
(1) In October 2022, the Corporation reached an agreement with Par Pacific Holdings for the sale of the Billings refinery and select midstream assets, which includes about 300 retail fuel sites, and expects the transaction to close in 2023.
(2) In December 2022, the Corporation reached an agreement with Italiana Petroli for the sale of the Italy fuels business, which includes about 2,300 retail fuel sites, and expects the transaction to close in 2023.
(3) In January 2023, the Corporation announced the sale of its interest in Esso Thailand, which includes a network of about 800 retail fuel sites, and expects the transaction to close in 2023.
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Information with regard to chemical complex capacity:
ExxonMobil manufactures and sells petrochemicals. The large/integrated chemical complexes supply olefins, polyolefins, and a wide variety of other petrochemical products.
Chemical Complex Capacity At Year-End 2022 (1)
(millions of metric tons per year, unless otherwise noted) Ethylene Polyethylene Polypropylene ExxonMobil
Interest %
North America
Baton Rouge Louisiana 1.1 1.3 0.9 100
Baytown Texas 4.0 — 0.7 100
Beaumont Texas 0.9 1.7 — 100
Corpus Christi Texas 0.9 0.7 — 50
Mont Belvieu Texas — 2.3 — 100
Sarnia Ontario 0.3 0.5 — 69.6
Total North America 7.2 6.5 1.6
Europe
Antwerp Belgium — 0.4 — 100
Fife United Kingdom 0.4 — — 50
Gravenchon France 0.4 0.4 0.3 100
Meerhout Belgium — 0.5 — 100
Total Europe 0.8 1.3 0.3
Middle East
Al Jubail Saudi Arabia 0.7 0.7 — 50
Yanbu Saudi Arabia 1.0 0.7 0.2 50
Total Middle East 1.7 1.4 0.2
Asia Pacific
Fujian China 0.3 0.2 0.2 25
Singapore Singapore 1.9 1.9 0.9 100
Total Asia Pacific 2.2 2.1 1.1
Total Worldwide 11.9 11.2 3.2
(1) Capacity reflects 100 percent for operations of majority-owned subsidiaries. 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.
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