ExxonMobil Affiliate Commences Major African Development Project

IRVING, Texas - Oct. 18, 2000 - Exxon Mobil Corporation today announced that its affiliate, Esso Exploration and Production Chad, Inc. (Esso Chad) has commenced construction of the Chad-Cameroon Oil Development and Pipeline Project in West-Central Africa.

A Consortium comprised of affiliates of ExxonMobil, Petronas and Chevron is developing the Project; ExxonMobil's affiliate is the operator.

The Project will develop landlocked oilfields in southern Chad and transport the crude oil 650 miles by buried underground pipeline to the coast of Cameroon for export to world markets. The Project will cost an estimated $3.5 billion to construct and will produce about 225,000 barrels of oil per day. The Project is expected to produce one billion barrels of oil over its 30-year life.

At a commencement ceremony in Chad, attended by Chadian President Idriss Deby, Cameroonian President Paul Biya and World Bank - Africa Vice President Callisto Madavo, Esso Chad President Tom Walters described the planned construction activities that will lead to production start-up as early as 2003. He commented, "We have defined an aggressive construction schedule that is based on rapid mobilization and commencement of critical infrastructure work in the fourth quarter, 2000."

He added, "Pipeline installation will begin in 2001, in parallel with construction of oilfield processing facilities. Drilling of the first of the planned 300 wells will begin in late 2001 and continue through initial production start-up."

On June 6, 2000, the World Bank Board of Executive Directors approved the Bank's participation in the Project. As part of the approval, the governments of Chad and Cameroon will receive nonconcessionary commercial loans from the World Bank to fund equity investments by the countries in the pipeline. Commenting on the World Bank participation, Mr. Walters stated, "The Bank's decision to participate was an important milestone and served to validate the Consortium's environmental and social assessments and mitigation plans."

He added, "The Consortium has developed its plans through an unprecedented consultation process with Chadian and Cameroonian citizens." These plans also include support for two national parks in Cameroon and development of a specific benefits plan for the Bakola pygmies.

The environmental and socioeconomic assessment estimates that, depending on world oil prices, the Project will produce an economic development value for Chad of between $2.5-$8.5 billion over the Project's life. Cameroon is estimated to benefit by up to $900 million. These estimates include direct revenues, such as royalties and taxes, as well as indirect benefits, such as employment and purchases from local businesses.

The Chad-Cameroon Project is an unprecedented collaborative effort between the Consortium, the two governments, and the World Bank. As well, it is an integral element of ExxonMobil's commitment to enhance its leadership position in oil and gas development in West Africa, thereby contributing to the economic progress of the continent and the prosperity of its people.

The Corporate Council on Africa 1100 17th Street, N.W., Suite 1100 Washington, DC 20036 Tel: (202) 835-1115 Fax: (202) 835-1117 E-mail: