ExxonMobil has announced that additions to its proved reserves in 2009 totalled 2 billion bbls of oil equivalent, replacing 133% of production. Excluding the impact of asset sales, reserves additions replaced 134% of production. These additions are based on the corporation’s definition of proved reserves, which utilises the long term pricing basis that the corporation uses to make its investment decisions. This is a different price basis than the SEC basis, which uses 12 month average prices for the 2009 year end reserves calculation.
According to Rex W. Tillerson, Chairman and Chief Executive Officer of the ExxonMobil, the company has replaced more than 100% of production for 16 consecutive years. The corporation’s reserves additions in 2009, the highest in the decade, reflect new developments with significant funding commitments as well as revisions and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance. Reserves additions from the Papua New Guinea LNG project and the Gorgon Jansz LNG project in Australia totalled almost 1 billion bbls of oil equivalent. Proved additions were also made in many other countries including Canada, the USA, Angola and Norway.
At year end 2009, ExxonMobil's proved reserves base, utilising the corporation’s definition of year-end reserves, increased to 23.3 billion bbls of oil equivalent, split approximately evenly between liquids and gas (51% liquids, 49% gas).
Long term view
The long term nature of the industry, and the large size of the discrete projects that provide a significant portion of the corporation’s reserves additions, make it appropriate to consider a time horizon longer than a single year. The 10 year average reserves replacement ratio on the corporation's basis is 112%, with liquids replacement at 99% and gas at 131%. ExxonMobil’s reserves life at current production rates is 15.7 years.
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