Exxon 2015 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2015 Exxon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

Offshore Abu Dhabi, ExxonMobil and our joint venture partners are deploying innovative techniques to unlock
additional resource value from the historic Upper Zakum field. A combination of artificial islands, extended-reach
drilling, and maximum reservoir contact well technologies will increase daily production to 750 thousand barrels
of oil per day as we build upon our legacy in the United Arab Emirates.
Redeveloping a Historic Field
Discovered in 1963, the Upper Zakum oil field offshore
Abu Dhabi, United Arab Emirates (U.A.E.), is the second
largest offshore oil field in the world. The field is operated
by Zakum Development Company (ZADCO) on behalf
of its shareholders, including Abu Dhabi National Oil
Company (ADNOC) and ExxonMobil. ZADCO originally
developed the field using traditional offshore platforms,
ultimately installing nearly 100 of these platforms in the
Arabian Gulf.
ExxonMobils technology leadership and project
development capabilities afforded us entry into Upper
Zakum in 2006. Upon joining ZADCO, ExxonMobil and
our partners began studying options to increase Upper
Zakum’s production from about 500 thousand barrels per
day to 750 thousand barrels per day for at least 25 years.
We started by accurately characterizing the subsurface
to identify the optimal drilling and completions strategy,
then we developed, evaluated, and refined design alternatives. Ultimately, the partners funded a plan to reach
750 thousand barrels per day in 2018, and we are currently considering options to increase production to 1 million barrels
per day by 2024.
Building Up and Drilling Down
The new development plan, called UZ750, incorporates a unique combination of technologies to increase recovery and
minimize infrastructure. The project utilizes four artificial islands, the largest of which is the size of 135 American football
fields. The artificial island design included extensive hydrodynamic modeling to incorporate the specific tidal and wave
conditions in the region. Construction of the islands began in 2010 and was completed in 2014.
The island concept offers significant advantages. It supports higher-capacity land-based drilling rigs and also
addresses inefficiencies in existing processing facilities and the intra-field pipeline network. In addition, the island-based
infrastructure and wells are more durable, reliable, and capital-efficient than the legacy platforms. Over the life of the
field, the island-based project could save more than $40 billion in capital and operating costs relative to a traditional
development approach.
The UZ750 development plan was designed using state-of-the-art reservoir characterization and modeling techniques.
It also employs the first combination of artificial islands, extended-reach drilling, and maximum reservoir contact
well technologies. Some of the wells drilled from the islands will be more than six miles long. Computational well modeling
ensures maximum reservoir contact to effectively manage production from these long-reach horizontal wells, and reservoir
stimulation improves productivity. These advances generate higher production rates from fewer wells and fewer drilling
locations, improving recovery, reducing capital requirements, and minimizing our environmental footprint.
To enable production from the islands before completion of permanent facilities, the joint venture installed temporary
piping and facilities to process oil on the existing steel platforms. Production from the South Island began in 2014,
and production from the North Island began in 2015. Today, the UZ750 team is steadily increasing production
from new wells.
Upstream: Unlocking Resource Value
Highlight: Upper Zakum by the Numbers
  Redevelopment programuses four artificialislands,
the largest of which is equivalent in size to 135
American football fields
  750 thousandbarrels perday of oil production
anticipated in 2018
• Targeting 1 millionbarrels perday by 2024
  14 million tonsof rockand 13.5 million cubicfeet of 
concrete used to build the islands
  More than 1,000 wellslots locatedon four islands,
with well lengths up to 35,000 feet
• Installed 32 newpipelinesand300 pipelinecrossings
•  Permanent accommodationsfor 2,500personnel
18 ExxonMobil 2015 Summary Annual Report