ExxonMobil and Qatar Petroleum Sign Heads of Agreement for LNG Supply; Largest U.S. Agreement to Date.

Energy Editors/Business Editors

IRVING, Texas--(BUSINESS WIRE)--Oct. 16, 2003

Exxon Mobil Corporation (NYSE:XOM) and Qatar Petroleum announced today they have signed a Heads of Agreement (HOA) to supply Liquefied Natural Gas (LNG) from Qatar to the United States for an expected period of 25 years. The announcement was made by His Excellency Abdullah bin Hamad Al-Attiyah, Qatar Second Deputy Premier and Minister of Energy and Industry, and by Harry Longwell, Director and Executive Vice President, Exxon Mobil Corporation, at a signing ceremony this morning in Doha.

The HOA covers the development of two large LNG trains with combined capacity of 15.6 million tons per annum (mta) of LNG, or about 2 billion cubic feet per day, by Ras Laffan Liquefied Natural Gas Company Limited II (RasGas II). The feed gas for these trains will be sourced from Qatar's giant North Field, which has proven natural gas reserves in excess of 900 trillion cubic feet (tcf). More than 26 tcf of the reserve will be dedicated to this project. Downstream of the plants the parties will be working to acquire necessary transportation capacity and developing regasification capacity in the United States. Total estimated investment including ships is about $12 billion.

The project is the largest LNG import project that has been announced for supplying natural gas to the United States, and makes Qatar Petroleum and ExxonMobil leaders in supplying the important U.S. natural gas market. Delivery of LNG to the United States is projected to begin in 2008/2009, and will likely extend for more than 25 years. Several locations are currently under evaluation for developing a receiving terminal, and we expect the permitting process will be initiated in the fourth quarter of 2003.

The LNG trains will be built at Ras Laffan Industrial City in Qatar by RasGas II, a joint venture between Qatar Petroleum and ExxonMobil, that has been operating since 2001. Two existing trains currently produce more than 6 mta of LNG and two additional trains of 4.8 mta each are under construction. Qatar Petroleum will have a 70 percent equity interest in the project, and ExxonMobil 30 percent.

In his statement at the HOA signing ceremony, Minister Al-Attiyah said, "This important agreement to supply LNG to the U.S. markets is a major achievement for the State of Qatar and highlights another successful joint effort between Qatar Petroleum and ExxonMobil. The strength of Qatar Petroleum and ExxonMobil establishes an ideal partnership to meet the challenge of supplying the growing energy requirements of the United States. This long-term LNG supply agreement builds on Qatar's valued and strong relationship with the U.S."

Harry Longwell said, "The National Petroleum Council in the U.S. just published the results of a study that indicates the United States will need to import more gas to meet expected future demand and this project will be a valuable contribution to those balances. This huge, world-scale project, with many technological firsts for the U.S. market, has been under consideration for more than one year. The project demonstrates the impressive capabilities of the Qatar Petroleum - ExxonMobil partnership. We are immensely proud of this partnership, and we will continue to explore other business opportunities with Qatar Petroleum and the State of Qatar."

Qatar's Minister of Finance and RasGas Chairman, His Excellency Youssef Kamal, further stated, "This is a giant step for RasGas and it promises the conclusion of the largest agreement since the company's inception. It is undoubtedly a giant boost to our efforts to become an industry pace setter."

CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including resource recoveries, production rates, reserves, development rates, costs and investments, and project plans and schedules, could differ materially due to changes in market conditions affecting the oil and gas industry, political developments, technical or operating factors, and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com). References to quantities of oil and gas include amounts that are not yet classified as proved reserves but that we believe will be produced in the future.