MOBIL SIGNS CPC RESTRUCTURING AGREEMENT IN MOSCOW.

FAIRFAX, Va.--(BUSINESS WIRE)--Dec. 6, 1996--Mobil Corp. (NYSE: MOB) announced that it has signed an agreement earlier today in Moscow to restructure the Caspian Pipeline Consortium (CPC). The agreement permits Mobil to exercise its right to acquire a 7.5 percent equity interest in the 900-mile pipeline to be constructed to transport crude oil from Kazakstan and Russia to the Black Sea.

The agreement enables Mobil and seven other producer companies to purchase a 50% equity interest in the CPC pipeline from the CPC Founding Members in exchange for 100% funding of the initial pipeline construction cost.

After closing, equity interests include the governments of Russia (24%), Kazakstan (19%) and Oman (7%) as well as Chevron (15%), LUKoil (12.5%), Mobil (7.5%), Rosneft (7.5%), Agip (2%), British Gas (2%), Kazak Munaigaz (1.75%) and Oryx (1.75%).

Commenting on the signing of the restructuring agreement, Lucio A. Noto, Mobil's Chairman and Chief Executive Officer, said, "We are immensely pleased that all the parties involved have worked together to complete this historic agreement. It is a major step toward the implementation of the transportation system which will support full development of Kazakstan's Tengiz oil field, one of the world's largest, as well as other Kazak and Russian hydrocarbon resources. It also will provide great economic benefits to this developing region and its people."

Under the terms of the agreement, the producer companies will have the obligation to fund the project at twice their equity for the initial construction of the CPC pipeline project. Mobil's funding obligation will be 15 percent.

Initial pipeline construction, which is expected to be completed and commissioned by mid-to-late 1999, will provide an export capacity of 28 million metric tons per year (580 thousand barrels per day) of Russian and Kazak oil exports. Total estimated capital expenditures for initial construction, excluding pipeline assets valued at about $600 million contributed by the CPC Founding Members, is $2.1 billion (Mobil share: $310 million) over the next three years.

After completion of initial construction, the CPC pipeline is expected to undergo a phased expansion to accommodate a projected 67 million tons per year (1.4 million barrels per day) of Russian and Kazak oil exports. This expansion is forecast to cost approximately $2 billion and be completed around 2010.

Construction of the CPC pipeline will allow production from the Tengiz oil field, in which Mobil has a 25% equity interest, to reach well over 200 thousand barrels per day (TBD) by the turn of the century and about 800 TBD around 2010 (Mobil's share: 200 TBD). Current production is approximately 150 TBD.

The overall project involves the rehabilitation and upgrading of the existing pipeline from Tengiz to Komsomolsk, the construction and completion of a new pipeline from Komsomolsk to the Black Sea and a new single-point-mooring offshore loading facility at or near Novorossiysk.

In April 1996, Mobil signed a joint protocol between the CPC Founding members and the producer companies to restructure the CPC. In early May, Mobil completed its purchase of a 25% stake in the Tengiz oil field with reserves estimated in excess of six billion barrels. Mobil is also a partner in two major exploration joint ventures in Kazakstan -- the Caspian Sea Consortium and the Tulpar Munai Joint Venture.

CONTACT: Mobil Corporation, Fairfax

David Dickson, 703/846 2378