Azerbaijani Parliament ratifies the Zafar-Mashal Agreement

Exxon Azerbaijan Operating Company LLC (Exxon Azerbaijan), a subsidiary of Exxon Mobil Corporation (NYSE: XOM), announced today that the Agreement on Exploration, Development and Production Sharing (PSA) for the Zafar-Mashal offshore exploration block in the Azerbaijan sector of the Caspian Sea has been ratified by the Milli Mejlis (Parliament) of the Azerbaijan Republic.

George MacDonald, Exxon Azerbaijan general manager, said, "We are committed to be a long-term, significant participant with the Azerbaijan Republic in the exploration and development of hydrocarbon resources in the Azerbaijan sector of the Caspian Sea. We are pleased that the ratification process has been completed. While the potential of the Zafar-Mashal block is very attractive, drilling will be required to confirm the presence of hydrocarbons."

The Zafar-Mashal PSA was signed by Exxon Exploration and Production Caspian Sea Limited, a subsidiary of Exxon Mobil Corporation, and the State Oil Company of the Azerbaijan Republic in Washington, D.C., during President Heydar Aliyev's trip to the United States in April 1999. According to the Agreement, SOCAR has a 50 percent interest, Exxon Exploration and Production Caspian Sea Limited holds a 30 percent interest, and Conoco a 20 percent interest. Exxon Azerbaijan will serve as operator.

This deepwater offshore exploration block, Zafar-Mashal (previously known as D-9 and D-38), is located about 75 miles (110 kilometers) south-east of Baku. The block is located in water depths ranging from about 1,800 feet (550 meters) to 2,900 feet (900 meters) and covers about 250 square miles (640 square kilometers).

/Ots-PRNewswire/