ExxonMobil Adds 4.5bn BOE to Reserves in 2018

ExxonMobil announced late on February 26 that it added 4.5bn barrels of oil equivalent (boe) of proven oil and gas reserves in 2018.

The gains, driven mainly by increases from its Permian Basin shale holdings and discoveries and acquisitions in Guyana and Brazil, as well as higher prices, were equal to 313% of its production for the year. The US company’s reserves totaled 24.3bn boe at year-end 2018.

ExxonMobil’s reserves life at current production rates is 17 years. Over the past 10 years, proved oil and gas reserves totaling approximately 17bn boe have been added, equivalent to 108% of production, including the impact of asset sales.

Unconventional plays, including the Permian Basin, drove additions of 1.2bn boe to the reserves. Exploration discoveries and strategic acquisitions, primarily in Guyana and Brazil, added a further 1.3bn boe.

“Multiple new discoveries offshore Guyana, continued growth in the Permian Basin and a strategic acquisition in Brazil greatly enhanced our already strong portfolio of high-quality, low-cost-of-supply opportunities,” said chairman and CEO Darren W. Woods.

Higher prices allowed another 3.6bn boe to be classified as proved reserves. In 2016, the crash of oil prices forced Exxon to slash proved reserves.

Meanwhile, the protracted closure of Groningen in the Netherlands, Europe’s biggest gas field, resulted in a downward revision of some 800mn boe