SUMMARY

Technological breakthroughs and political changes over the last decade have opened up new exploration frontiers in South America making it a strategic exploration area for Exxon. Exxon has identified several areas of interest, using its approach to high-grade areas through integrated regional studies, hydrocarbon system analysis, and basin and field assessment.

Offshore Brazil and Trinidad represent two areas where Exxon can leverage its worldwide deepwater expertise. Exploration, production, and project management experience from West Africa, the North Sea, and the Gulf of Mexico will allow us to successfully explore and produce from these technologically challenging, but prospective regions.

In Brazil, recently passed hydrocarbon legislation has opened Brazil's oil and gas industry to private company participation, providing access to the upstream sector. The opportunities include potentially attractive deepwater exploration areas as well as development projects. Exxon is currently participating in the joint-venture process with Petrobras.

In Trinidad, Exxon participated in the April 1997 offshore exploration tender and was awarded the rights to exclusively negotiate a production-sharing contract for two deepwater exploration blocks.

The Sub Andean foldbelt and associated foreland basins, while posing technological and operational challenges, represent one of the world's most prolific hydrocarbon provinces. Currently, Exxon is participating in five frontier exploration blocks in southern Peru, northern Bolivia, and Colombia.

In Venezuela Exxon is pursuing a heavy oil opportunity in the Oficina area and development of the Cristobal Colon gas resource. Exxon continues to high-grade additional opportunities in Venezuela and elsewhere in northern South America.

AAPG Search and Discovery Article #90937©1998 AAPG Annual Convention and Exhibition, Salt Lake City, Utah