ExxonMobil's decision to book reserves in 2003 from...
ExxonMobil's decision to book reserves in 2003 from the offshore Kashagan field in the Caspian Sea has not startled analysts, even though some partners in the project have yet to do so, and rival Royal Dutch/Shell recently removed Kashagan reserves from its "proven" category as part of its recent 3.9 billion barrel of oil equivalent reclassification.
The Kashagan field is estimated to hold 9 billion-13 billion boe, however various delays have made the timing of reserve bookings from the scheme controversial.
In its 10-K annual report filed with the US Securities and Exchange Commission, Exxon Mobil revealed it booked 491 million bbl of crude and liquids from extensions and discoveries from its operations in the Middle East, Caspian region and South America.
Analysts say 380 million bbl of these additions are from Kashagan, where Exxon Mobil holds a 20% stake in that project.
The company last week defended its booking of reserves at Kashagan, which has not yet received final project approval from the government of Kazakhstan.
"We've made a financial commitment to go forward with the project, and we are confident that we will develop the field," Rex Tillerson, head of Exxon Mobil's upstream operations, told investors at a strategy meeting in New York. "Our view is that the government and the consortium hold a common understanding to move this resource forward."
