Mobil completes purchase of 25% interest in Tengiz Oil Field in Kazakstan.

FAIRFAX, Va.--(BUSINESS WIRE)--May 3, 1996--The Republic of Kazakstan and Mobil Corporation announced today the signing of the Final Purchase and Sales Agreement (FPSA) for Mobil's purchase of a 25% interest in the Tengiz oil field, with estimated recoverable reserves of at least six billion barrels.

With the signing of the agreement, Mobil will hold a 25% interest, Tengizmunaigaz, a government-owned Kazakstan producing association, will hold a 25% interest and Chevron will continue to hold a 50% interest.

The official signing of the FPSA by Mobil Chairman and Chief Executive Officer Lucio A. Noto and N.U. Balgimbaev, Kazakstan's Minister of Oil and Gas, takes place less than a week after the signing of a joint protocol to restructure the Caspian Pipeline Consortium (CPC) and to develop a 900-mile pipeline from the Tengiz oil field in western Kazakstan to the Black Sea port of Novorossiysk. "Today's agreement, together with the recent signing of the joint protocol to build the pipeline system strategically necessary to support full development of the Tengiz field, signals that Kazakstan is making steady progress toward developing its vast energy resources," said Minister Balgimbaev. "We believe that Mobil, with its proven strengths in developing large oil and gas projects, will be an ideal long-term partner for Kazakstan."

"Mobil is very pleased with its purchase of a major interest in Kazakstan's world-class Tengiz oil field and its right to acquire an equity interest in the pipeline, Mr. Noto said. Our participation in the Tengiz oil field and the pipeline project complements our existing exploration activities in conjunction with the Caspian Sea Consortium and the Tulpar Munai Joint Venture, and reaffirms our confidence in the ability of the Republic of Kazakstan to build its energy industry for the future."

The joint pipeline protocol, ratified in Almaty on April 27, establishes the principles for the restructuring of the CPC. The protocol gives Mobil a 7.5% equity interest in the pipeline; Chevron, 15%; Lukoil, 12.5%; Rosneft, 7.5%; British Gas and Agip, 2% each; and Oryx and Kazakmunaigaz, 1.75% each. The remaining 50% is divided among the governments of Kazakstan, Russia and Oman. With the signing of the protocol, Mobil and other participants will begin funding CPC's ongoing, interim costs to maintain operations pending development and signature of a full shareholders' agreement detailing the restructuring of CPC.

CONTACT: Mobil Corp., Fairfax

Christopher Springham, 703/846-2500