Exxon Mobil Corporation

Exxon Mobil Corporation
BJ Services Company

April 29, 2005 11:01 ET

New ExxonMobil Technology to Substantially Reduce Subsea Well Intervention Costs


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EXXON MOBIL CORPORATION

NYSE SYMBOL: XOM

AND BJ SERVICES COMPANY

NYSE SYMBOL: BJS

APRIL 29, 2005 - 11:01 ET

New ExxonMobil Technology to Substantially Reduce
Subsea Well Intervention Costs

IRVING, Texas--(CCNMatthews - Apr 29, 2005) -

Exxon Mobil Corporation (NYSE:XOM) announced today that it has developed
a new technology that significantly reduces the cost and time of
downhole logging, acidizing and other interventions in deepwater oil and
gas wells.

The Subsea Intervention Module (SIM) system is expected to perform these
activities up to three times faster than a mobile offshore drilling unit
(MODU). Initially, cost savings of the SIM system compared to a MODU are
expected to be up to 50%. The expected lower operational cost of the SIM
system will lead to improved production rates and accelerated reserve
recovery benefits to operators and host nations.

The patented SIM system, which ExxonMobil has been developing for
several years, consists of a 380-foot long vessel designed to
accommodate a specially designed intervention tool that is lowered to
the sea floor and latched onto the subsea well.

The SIM tool will be functional in up to 6,500 feet of water. It will be
able to accommodate well depths of up to 13,000 feet below the sea
floor. The system is designed for use in wells employing horizontal
subsea trees with 36-inch structural casings.

To commercialize this new technology, an ExxonMobil affiliate has
licensed the SIM system to a joint venture formed by BJ Services Company
(NYSE:BJS), a leading provider of pressure pumping, coiled tubing and
well-intervention services, and Otto Candies, LLC, a specialty offshore
vessel operator. This venture will operate the SIM system following
completion of design and construction in approximately three years.

"The SIM system is another tangible example of ExxonMobil's world-class
research and development capabilities, which is a cornerstone in
building our reputation as the preferred partner for host nations around
the globe," said Rex Tillerson, president of Exxon Mobil Corporation.
"We envision the system will help to maximize production from subsea
wells and aid the economics and potential development of deepwater
offshore fields."

According to Bill Stewart, Chairman and CEO of BJ Services Company, "the
SIM system represents a tremendous advancement in coiled-tubing
technology which will allow us to deploy many of our existing
world-class remedial well-intervention technologies in the expanding
deepwater market."

"The SIM vessel will be a dynamically positioned ship, which will be
about 1.5 times the size of a standard offshore stimulation vessel,"
said Otto Candies, Jr., Chairman and CEO of Otto Candies, LLC. "The ship
will feature a large moonpool for deployment of the SIM tool, a mission
control center and accommodations for a crew of more than 100 people. It
will be outfitted with all the fluid tanks, pumps, work areas and other
systems needed for the SIM subsea intervention work."

ExxonMobil, BJ Services and Otto Candies intend to introduce the SIM
system at this year's Offshore Technology Conference (OTC), May 2-5, at
the Reliant Center in Houston. A detailed model, short film describing
the system and additional information will be available at the BJ
Services Exhibition Booth #5527. Technical experts will also be on hand
at OTC to answer questions.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    ExxonMobil
    Bob Davis, 713-656-4376
    or
    BJ Services
    Trey Whichard, 713-462-4239
    or
    Otto Candies, LLC
    Nicki Candies, 504-469-7700