Exxon 2013 Annual Report Download - page 17

COST COMPETITIVENESS
Global LNG projects must be cost-competitive to deliver superior returns. Based on our world-class project execution
capabilities and ability to complete projects on schedule, PNG LNG will be at the low end of the cost curve relative to
other projects being developed. Even by incorporating the more expensive cost component of the construction in the
mountainous Highlands, the cost per MTA for the PNG LNG project will be among the lowest of projects being built
in the region.
CAPTURING GROWING ASIAN LNG DEMAND
PNG LNG project revenues and profitability are underpinned by long-term LNG sales contracts covering more than
95 percent of the plant’s capacity. The project is optimally located to serve growing Asian markets where LNG demand
is expected to grow by approximately 165 percent between 2010 and 2025, to 370 million tonnes per year. ExxonMobil’s
LNG marketing experience and successful track record of developing large LNG projects were instrumental in securing
sales with customers in China, Japan, and Taiwan.
EFFECTIVE RELATIONSHIPS WITH THE
GOVERNMENT AND LOCAL COMMUNITIES
Throughout construction, the project team, with our
co-venture partners and positive relationship with the
PNG government, has been able to draw on specific
industry, socioeconomic, and cultural expertise that
has helped position the project for success.
In 2011, we began training approximately 140 talented
Papua New Guinean nationals for the production
workforce that will operate the facilities for more
than 30 years. Our Papua New Guinean employees
developed into a team that respects and understands
the importance of business fundamentals by maintaining
excellence in safety, health, and environment, and in ensuring
accountability, integrity, and the highest standards of performance.
We created programs to improve maternal health and reduce child
mortality rates as well as initiatives designed to promote sustainable
business growth. For example, we developed the Enterprise Centre,
which has already assisted more than 16,000 Papua New Guinean
entrepreneurs. To care for the local environment, the project has
adopted international best practices in its approach to biodiversity
management, waste management and recycling, and invasive
weed and pest control programs.
LEADING LNG CAPABILITIES
The PNG LNG project exemplifies ExxonMobil’s leadership in project execution, advanced technologies, and marketing
capabilities. We will continue to enhance our reputation and leading LNG capabilities as we start delivering LNG cargoes
from PNG in 2014. Our demonstrated expertise enables effective working relationships with customers, partners,
and governments around the world as we progress other LNG opportunities in our portfolio, including expansion
opportunities in PNG, to meet growing global demand.
PNG LNG underscores our ability to complete a complex project and develop a world-class resource in a challenging
environment on schedule and at a competitive cost. This project will deliver reliable, affordable energy to our customers
and create long-term economic value for the people of Papua New Guinea, our partners, and shareholders.
Eric Whetstone • Whetstone Design
EDITOR
Julio E. Tamacas • Investor Relations
Exxon Mobil Corporation, Irving, TX
Office: 972.444.1135
Cell: 972.249.8901
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER
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LAST FILE CHANGE MADE BY
M F07 S15 13XOM-
PapuaNewGuinea.ai
IN F&O ON PAGE
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Includes link le
LNG
plant Port
Moresby
Lae
Oil export
platform
Detail
Subsea
gas pipeline
Kutubu
oil facility
PAPUA
NEW GUINEA
Coral Sea
Juha
Production facility
250 mcfd
Juha wellheads
elevation: 3,000 feet
Hides wellheads
elevation:
5,000 to 9,000 feet
Liquids and gas
to Kutubu
Angore
wellheads
Hides
Gas-conditioning
plant
960 mcfd
15