Management Address Jan 2019

Working Together to Advance Liza Phase 1

I wish you all a safe and happy new year in 2019, the year of delivery for the Liza Phase 1 project. In this edition of the newsletter, which highlights our fourth quarter accomplishments, you will see that the team was able to Finish Strong in 2018 with a safe close to the year, which I know we are all thankful for.

We achieved several major milestones in the fourth quarter. At the FPSO fabrication site, the team completed the lifting of seven topsides modules and is preparing for the final five module lifts. In Trinidad and offshore Guyana, the team received several tree system components from Brazil and installed the first subsea equipment on the Guyana sea floor. On the U.S. Gulf Coast, TechnipFMC continued the manufacturing of the umbilicals and the production manifolds, and Saipem continued the fabrication of the subsea structures. Saipem also safely executed the first offload of project linepipe in Georgetown for storage at the John Fernandes Ltd. shorebase – we’ll feature a video of that first physical project execution activity in Guyana in our next newsletter.

In this edition, I am excited to share with you stories of how our team is building the foundation for world class SSHE performance in Guyana, recommitting to safety engagement globally with our business partners, and how we worked with the Centre for Local Business Development to host a Supplier Development Forum in Guyana. As a project, we continue to grow our efforts to develop Guyanese workers, as highlighted in stories from TFMC, Saipem and ExxonMobil. You’ll also read about how our drilling and subsurface teams are collaborating to prepare for the 2019 completions campaign and how our operations team is coordinating with SBM to ramp up in-country.

In this early part of 2019, the collective team is working hard to identify and finalize numerous interfaces across the project as engineering is finalized and facilities and equipment are completed and delivered from around the world. Significant planning and preparation are underway for the ramp up of the offshore installation campaign.

From the greater portfolio perspective, ExxonMobil Guyana has announced its 10th discovery at Pluma-1 and now has three drill ships operating in Guyana: two ships completing exploration operations and one performing the Liza development drilling. The future remains bright beyond Liza Phase 1 as we set the foundation for the future by working as One Team.

Applying Lessons Learned to Deliver Benefits

The Liza Phase 2 team has had a remarkable year in 2018. Only one year ago, we were still in concept selection. Since then, we’ve passed both Gate 2 and 3, awarded key contracts and formed a strong team across ExxonMobil, SBM, TechnipFMC (TFMC) and Saipem. We continue to see the benefits of leveraging the same team as Phase 1, including accelerated engineering definition, more optimal procurement cycles, improved alignment on interfaces and general implementation of lessons learned.

In the fourth quarter of 2018, we achieved several important milestones. FPSO front-end engineering design (FEED) has been completed by SBM, with long lead equipment orders placed, and keel laying of the MPF hull occurred in November at the Shanghai Waigaoqiao Shipbuilding Co. (SWS) yard in Shanghai. On the SURF side, engineering is progressing well and fabrication is kicking off. TFMC has started manufacturing including umbilical tubes and connector forgings. Saipem has commenced linepipe manufacturing, while OSI has begun casting pours for the flex joint receptacles.

On the SSHE front, SWS achieved an important milestone during the fourth quarter of 2018 by completing one million hours without a lost time incident (LTI) on the MPF. This is a great accomplishment and was supported by the collaborative approach to safety between SWS, SBM and ExxonMobil, which exemplifies our One Team goal. With fabrication activities continuing to ramp-up, we need to maintain a strong safety focus. This will help us deliver our Nobody Gets Hurt vision as we work toward Delivering Unity to Guyana.