exv99

Corporate

(GRAPHS AND BAR CHARTS)


o	Corporate	1-17
o	Safety, Health & Environment	18-19
o	Technology	20-23
o	Upstream	24-61
o	Downstream	62-77
o	Chemical	78-85
o	Frequently Used Terms	86-89
	Index	90

Projections, targets, expectations, estimates, and business plans in this report are forward-looking statements. Actual future results, including demand growth and energy mix; capacity growth; the impact of new technologies; capital expenditures; project plans, dates, and capacities; production rates and resource recoveries; and efficiency gains and cost savings could differ materially due to, for example, changes in market conditions affecting the oil and gas industry; war and other political or security disturbances; changes in law or government regulation; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; the outcome of commercial negotiations; unforeseen technical difficulties; and other factors discussed in this report and under the heading “Factors Affecting Future Results” on our web site and in Item 1 of ExxonMobil’s most recent Form 10-K.

Definitions of certain financial and operating measures and other terms used in this report are contained in the section titled “Frequently Used Terms” on pages 86 through 89. In the case of financial measures that we believe constitute “non-GAAP financial measures” under SEC Regulation G, the definitions also include a reconciliation to the most comparable GAAP measure and other information required by that rule.

Certain reclassifications to prior years have been made to conform to the 2003 presentation.

ExxonMobil has a long history of leadership in the petroleum and petrochemical industries. The discipline we apply to the execution of the following key long-standing business strategies has led to sustainable competitive advantages and allowed us to take on the world’s toughest energy challenges. These key business strategies have helped us achieve industry-leading earnings and return on capital employed year after year.

• Upholding the highest ethical standards and business integrity

• Ensuring safe, environmentally-sound operations

• Capturing quality investment opportunities while maintaining a selective and disciplined approach

• Executing operational excellence in all aspects of our businesses

• Developing and employing cutting-edge proprietary technology

• Achieving leadership positions in each of our core businesses

• Optimizing financial performance through geographic and functional portfolio diversity and integration

• Maintaining a strong financial position to allow for the pursuit of all profitable opportunities

• Attracting and retaining an exceptionally qualified and highly motivated workforce

• Leveraging efficiency gains through our Global Functional Organization

2003 HIGHLIGHTS

• Record low safety incidents

• Record earnings — highest in the history of the Corporation

• Industry-leading return on capital employed of 21 percent

• Proved reserves additions replaced 105 percent of production

• Oil-equivalent production capacity increased 1 percent

• 16 Upstream projects started up in 2003, with a combined targeted gross daily peak production of 1.2 million barrels of oil per day and 1.3 billion cubic feet per day of natural gas

• Key resource additions from Qatar, Angola, Canada, Nigeria, Brazil, Kazakhstan, and the United States

• Downstream operating cost, efficiency gains, and revenue enhancements in excess of $1.5 billion

• Chemical prime product sales equivalent to last year’s record level

• Annual dividend payments increased for the 21st consecutive year

• $11.5 billion returned to shareholders through dividends and share purchases

2003 Industry Conditions

• World GDP grew about 2.5 percent in 2003, versus 2.0 percent in 2002.

• World oil demand increased by about 1.4 million barrels per day in 2003. World natural gas consumption increased by about 6 billion cubic feet per day in 2003.

• Brent oil prices averaged almost $29 per barrel in 2003, up about $4 per barrel versus 2002.

• Natural gas prices in the United States were volatile, but on average were 74 percent higher versus 2002. In Europe, natural gas prices were up 23 percent versus 2002, and up 7 percent excluding foreign exchange effects.

• 2003 industry refining margins throughout the world improved versus 2002 and were particularly strong during the first half of 2003. The stronger margins reflected many crude oil and finished product market factors, including stronger product demand in the U.S.and elsewhere.

• Worldwide industry chemical demand grew 3 percent during 2003, primarily driven by growth in Asia.

Exxon Mobil Corporation 1 Corporate

FINANCIAL HIGHLIGHTS


*(millions of dollars)*	2003		2002		2001		2000		1999
Sales and other operating revenue		237,054		200,949		208,715		227,596		181,759
Net income		21,510		11,460		15,320		17,720		7,910
Cash flow from operations and asset sales		30,788		24,061		23,967		28,707		15,985
Capital and exploration expenditures		15,525		13,955		12,311		11,168		13,307
Cash dividends to ExxonMobil shareholders		6,515		6,217		6,254		6,123		5,872
Research and development costs		618		631		603		564		630
Cash and cash equivalents at year end		10,626		7,229		6,547		7,080		1,688
Total assets at year end		174,278		152,644		143,174		149,000		144,521
Total debt at year end		9,545		10,748		10,802		13,441		18,972
Shareholders’ equity at year end		89,915		74,597		73,161		70,757		63,466
Average capital employed⁽¹⁾		95,373		88,342		88,000		87,463		83,836
Market valuation at year end		269,294		234,101		267,577		301,239		280,150

KEY FINANCIAL RATIOS
Net income per common share — assuming dilution (dollars)		3.23		1.68		2.21		2.52		1.12
Return on average capital employed⁽¹⁾ (percent)		20.9		13.5		17.8		20.6		10.3
Net income to average shareholders’ equity (percent)		26.2		15.5		21.3		26.4		12.6
Net income to total revenue and other income (percent)		8.7		5.6		7.2		7.6		4.3
Debt to capital⁽²⁾(percent)		9.3		12.2		12.4		15.4		22.0
Net debt to capital (net of all cash — percent)		(1.2	)	4.4		5.3		7.9		20.4
Current assets to current liabilities⁽³⁾		1.20		1.15		1.18		1.06		0.80
Fixed charge coverage (times)		30.8		13.8		17.7		15.6		6.6

(1) See Frequently Used Terms.

(2) Debt includes short- and long-term debt. Capital includes short- and long-term debt, shareholders’ equity, and minority interests.

(3) Current liabilities include short-term debt (notes and loans payable).

(GRAPHS AND BAR CHARTS)

CORPORATE 2 Exxon Mobil Corporation

INDUSTRY OUTLOOK

Understanding energy supply and demand trends is a critical element of ExxonMobil’s strategic planning process. For several decades, we have produced a comprehensive worldwide energy outlook that typically covers 20 years into the future.

World Energy Needs Are Growing

Energy use and economic growth are closely linked, and growing economies will continue to require reliable energy supplies.

Economic growth is expected to remain the primary driver of energy demand. We expect the world’s economy will grow on average at about 3 percent per year through 2020, more slowly in developed countries and faster in developing nations.

Developing nations are expected to generate about 80 percent of the worldwide growth in energy demand from 2000 through 2020. Meeting this growing need for energy presents a vital opportunity. About one-quarter of the world’s population has no access to electricity and close to 40 percent rely on biomass for cooking and heating. Modern energy is critical for raising living standards in developing nations through better health, education, and productivity.

By 2020, we expect that the world in total will require about 40 percent more energy than in 2000, or close to 290 million barrels of oil-equivalent energy every single day, despite continuing conservation efforts and efficiency gains.

From a historical perspective, energy efficiency has improved dramatically. For example, industrialized nations now use about one-third less energy for each $1,000 of economic output than in 1970. We expect continuing worldwide efficiency gains of about 1 percent per year due to improved vehicles, power plants, construction standards, and other actions.

(BAR CHART)

Oil and Gas Will Remain Predominant Energy Sources

Meeting higher energy demands will require a broad portfolio of energy options. We anticipate that hydrocarbon fuels will remain the dominant energy source through the middle of the century.

Oil and gas are expected to remain essential to economic growth throughout the world. Their share of the world’s energy supply — close to 60 percent today — is expected to remain relatively stable over the next two decades. The economic advantages of these primary energy sources will continue as resources exist in sufficient quantity to meet the world’s growing demand.

Energy sources other than oil and gas will be important to meet world demand.

• Coal will grow, driven by strong demand in China and India and continued growth in the U.S.

• Hydropower and nuclear power will also grow, though public opposition and the lack of suitable sites will limit capacity.

We expect wind and solar energy to average double-digit growth rates through 2020, supported by continued public subsidies. However, because wind and solar energy start from a very small base, they are likely to provide only about one-half of 1 percent of the world’s energy in 2020.

Carbon emissions associated with energy use are expected to continue to rise through 2020. About 80 percent of the emissions growth is expected to occur in developing nations, a factor to be considered in approaches to reduce global emissions.

(GRAPHS)

Exxon Mobil Corporation 3 Corporate

Industry Outlook (continued)

Transportation Needs Drive Growing Oil Demand

About 60 percent of the expected increase in oil demand stems from growing transportation needs, reflecting a steady increase in the number of vehicles per capita as personal incomes rise. This is particularly significant in developing countries, which will account for about 75 percent of the increase in transportation demand.

Helping offset the growth in vehicle miles traveled are continuing advances in automotive technologies. Today’s gasoline internal combustion engine (ICE) represents the competitive standard, and new approaches are being researched by ExxonMobil and automobile companies to improve fuel efficiency and reduce CO₂ emissions.

While there are a number of promising emerging technologies, continued advances in ICE technologies, including hybrids, will provide significant gains for fuel efficiency and reduced CO₂ emission levels. In 2020, we believe essentially all automobiles will continue to use an ICE, and so we will continue to engage in developments that will make these technologies more efficient.

• ICE research is underway to better understand the complex interactions between the blend of molecules in gasoline or diesel fuel and an engine. This research will help optimize future fuel/engine systems for higher efficiency and lower emissions.

• A second path, called homogeneous charge compression ignition (HCCI), involves new combustion technologies that have attributes of both gasoline spark ignition and diesel compression ignition. Advances through research could lead to 30 percent better fuel efficiency as compared to current gasoline-fueled engines, and a significant reduction in smog-causing emissions and carbon dioxide.

• Another promising extension of ICE technology is hybrid-vehicle technology. Hybrids use a gasoline engine for steady speeds and an electric motor for extra power during the more energy demanding phases of start-up and acceleration. In city driving, where this technology has major advantages, these vehicles deliver a fuel economy improvement of more than 50 percent. Models using this technology are on the road today.

For the longer term, there is significant research underway related to automotive fuel cell systems powered by hydrogen. Hydrogen is abundant, and therefore appealing, but as it is not found freely in nature, it requires energy to produce it. Technical and economic issues related to the cost, safe distribution, and widespread use of hydrogen remain significant challenges.

Natural Gas Emerging as a Global Market

Over the next two decades, we expect natural gas will be the fastest growing primary energy source, capturing about one-third of all incremental energy growth and approaching one-quarter of global energy supplies. Driving this demand is the fact that natural gas remains the primary fuel of choice to meet worldwide electricity demand growth of about 3 percent per year.

As natural gas demand grows, inter-regional trade is expected to more than triple by 2020, increasing to about 18 percent of total demand. Effective international cooperation, as well as significant investments to sustain and enhance natural gas production and transportation systems, will be critical to achieving this growth

(BAR CHARTS)

Corporate 4 Exxon Mobil Corporation

An area of significant interest is development of a world-wide liquefied natural gas (LNG) market. We expect the LNG market to quadruple by 2020, accounting for about 13 percent of total world gas demand. With equity positions in many of the largest gas accumulations in the world, we are strongly positioned to benefit from our technology advances in gas liquefaction, transportation, and regasification that enable distant gas supplies to reach markets economically.

(BAR CHART)

Growing Oil and Gas Demand Requires New Supplies

Meeting growing oil and gas demand will be a challenge. Nevertheless, abundant resources exist. According to U.S. Geological Survey (USGS) estimates, the conventional recoverable liquid resource base is about 3 trillion barrels of oil. In addition, there are significant unconventional resources including extra heavy oil, oil sands, and other resources. The International Energy Agency (IEA) has compiled estimates that indicate there are over 4.3 trillion barrels of unconventional oil resources in place. To put this volume into perspective, a total of less than 1 trillion barrels of petroleum has been produced since the 1800’s.

New technologies will continue to extend the recoverable liquid hydrocarbon resource, as demonstrated in the past by improvements in 3D seismic imaging and reservoir modeling, advanced drilling, and arctic and deepwater resource development. In fact, according to the USGS, despite production of more than 400 billion barrels since 1980, remaining recoverable oil resources are more than 70 percent higher now versus 1980.

The ongoing task is to find, produce, and deliver this energy. By 2020, the industry will likely need to add about 125 million barrels of oil-equivalent per day to meet demand — an amount close to current production levels. Development of these supplies will require access to resources, continued technology advances, adequate financing, and the cooperation of host governments. New technology will also enable unconventional resources to contribute to future energy supplies.

(GRAPH)

The costs to develop these resources are large. According to the IEA’s World Energy Investment Outlook 2003 report, the investment required to meet total energy needs worldwide through 2030 will be $16 trillion with about 38 percent, or $200 billion per year, required for oil and gas.

(PIE CHART)

ExxonMobil, with its industry leading resource base, financial strength, disciplined investment approach, and technology portfolio, is well positioned to participate in substantial investments to develop new energy supplies. Our strong base will provide us with a sustainable competitive advantage and help us remain at the forefront in capitalizing on the opportunities ahead.

Exxon Mobil Corporation 5 Corporate

UNPARALLELED EXECUTION OF BUSINESS STRATEGIES BUILDS COMPETITIVE ADVANTAGE

Although other companies may take a similar approach, it is the execution of our strategies that distinguishes us from competition. It is this superior execution that delivers industry-leading results in all aspects of our business.

Upholding the Highest Ethical Standards and Business Integrity

ExxonMobil has long recognized the importance and value of sound corporate governance, high ethical standards and business integrity. We believe that the methods we employ to attain results are as important as the results themselves. We are committed to candor, honesty, and integrity in the reports that we make to our investors. Those messages are included in our Standards of Business Conduct, which has been widely communicated to our employees for decades. ExxonMobil employees and non-employee directors are expected to review the policies in our Standards of Business Conduct periodically and to apply them to all aspects of their work. Our straightforward business model, Standards of Business Conduct and culture of integrity and legal compliance are key to achieving long-term sustainable results.

Ensuring Safe, Environmentally Sound Operations

ExxonMobil is committed to maintaining high standards of safety, health, and environmental care. We comply with all applicable environmental laws and regulations, and apply responsible standards where laws and regulations do not exist. We believe that when a company is committed to safety, health, and the environment, as we are, this provides the sound foundation for all aspects of the business, and helps to deliver superior financial results. In 2003, ExxonMobil set another record in employee safety performance, and again led the industry in this area.

Capturing Quality Investment Opportunities While Maintaining a Selective and Disciplined Approach

ExxonMobil applies a highly disciplined approach in selecting and pursuing the most attractive investment opportunities. Ours is a long-term business where large capital investments are required. Potential investment opportunities are tested over a wide range of economic scenarios to establish the resiliency of each opportunity. Our disciplined approach continues through execution of all phases of the investment from design through start-up and ongoing operations. Once investments are made, a rigorous reappraisal process is completed to ensure relevant lessons are learned and improvements are incorporated into future projects. This rigorous approach ensures that we obtain the maximum value for our investments, and clearly distinguishes us from competition.

ExxonMobil views return on capital employed as the most critical and best measure of historical capital productivity in our capital-intensive, long-term industry. ExxonMobil has a long history of leadership in return on capital employed. The combination of our disciplined investments and operational excellence eliminates the need for periodic large asset write-offs and leads to consistent industry-leading returns throughout the business cycles. In 2003, ExxonMobil remained the industry leader in return on capital employed, with a return of 20.9 percent.

(GRAPHS AND BAR CHARTS)


Growth in Shareholder Value
Disciplined Investment	Operational Excellence	Superior Cash Flow	Industry-Leading Returns

Execution of Resilient Business Model Delivers Results ExxonMobil’s fundamental approach to its business is disciplined, straightforward, and focused on the long-term. With over 120 years of industry experience, ExxonMobil has managed through the business cycles with our resilient business model. Consistently applying the ExxonMobil business model is self-sustaining in that success in one area provides the basis for success in the next, creating ever-greater shareholder value.

Corporate 6 Exxon Mobile Corporation

Executing Operational Excellence in All Aspects of Our Businesses

ExxonMobil operates our business to the highest industry standards in all respects. We call this operational excellence. To accomplish this, ExxonMobil has developed a wide range of proven management systems. These systems cover all aspects of our operations from business ethics, finance, project execution and reappraisal, to operating, security, safety, health, environmental and profit improvement initiatives, including efforts to increase reliability, lower costs, and enhance revenue. We have achieved strong results by focusing on operational excellence.

Developing and Employing Cutting-Edge Proprietary Technology

ExxonMobil has a long-standing tradition in technology development. Our industry-leading technology investments include research dedicated to the discovery and development of new technologies and their application to day-to-day operations. A significant portion of our research program is aimed at developing next-generation and breakthrough technologies that have the potential to provide a step-change to the Corporation’s competitive position and financial performance. During the past 10 years, ExxonMobil has received over 10 thousand patents in the U.S. and Europe.

Optimizing Financial Performance Through Geographic and Functional Portfolio Diversity and Integration

ExxonMobil’s size, geographic diversity, and the complementary nature of our businesses provide a natural hedge and mitigate the Corporation’s sensitivity to fluctuations in commodity prices, business cycles, and individual market conditions. In addition, by taking advantage of synergies among our various businesses, including physical integration of manufacturing facilities, ExxonMobil is able to optimize total company performance. For example, over 80 percent of our refining capacity is integrated with chemical and/or lubricant manufacturing operations. This integration provides competitive advantages through improved feedstock flexibility and lower site operating costs.

(BAR CHART)

ExxonMobil is well positioned in established markets
and is expanding in higher-growth regions.

Maintaining a Strong Financial Position to Allow for the Pursuit of All Profitable Opportunities

ExxonMobil’s financial strength provides a competitive advantage that enables us to pursue any and all profitable investment opportunities that achieve acceptable returns around the world. ExxonMobil is one of few U.S. companies with a triple-A credit rating, a rating that has been sustained for 85 years. Strong business results and our disciplined approach to financial management ensure we maintain this financial strength at any stage of the industry cycle.

We rely on our geographic and functional diversity to reduce our financial exposure. As a result, the company seldom uses derivatives to hedge corporate risk and never uses them to speculate.

(GRAPHS)

Exxon Mobil Corporation 7 Corporate

Business Strategies (continued)

Attracting and Retaining Exceptional Quality and Highly Motivated Workforce

ExxonMobil’s success is the result of a highly capable, diverse workforce focused on the right business priorities. Developing such a workforce requires leadership, action plans, accountability, stewardship, and constancy of purpose over the long-term.


(thousands of employees, year-end)	2003		2002		2001		2000		1999
United States		34		36		36		36		39
Outside United States		54		56		62		64		68

Total regular employees⁽¹⁾		88		92		98		100		107

CORS⁽²⁾ employees not included above		18		17		20		19		16

⁽¹⁾		Active executive, management, professional, technical and wage employees who work full-time or part-time for the company and are covered by the company’s benefit plans.

⁽²⁾		CORS employees are employees of company-operated retail sites.

Leveraging Efficiency Gains Through Our Global Functional Organization

ExxonMobil is organized to operate our functional business lines on a global basis. Through this functional organization, global opportunities are ranked and people are deployed to ever-changing business conditions. The functional organization also helps to promptly identify and prioritize high-impact technology needs, and it facilitates rapid sharing of ideas and best practices across our global organizations.

ExxonMobil’s functional approach continues to deliver savings to the bottom line through operating cost efficiencies and revenue enhancement opportunities. In 2003, ExxonMobil delivered more than $1.0 billion in before-tax operating cost efficiencies.

COMPETITIVE ADVANTAGES BUILD SHAREHOLDER VALUE

Strong Cash Flow Results from Business Approach

ExxonMobil generated $30.8 billion in cash flow from operations and asset sales in 2003. We distributed more than $11.5 billion to shareholders through dividend payments and share purchases. In addition, we invested $15.5 billion in capital and exploration expenditures. And finally, the company repaid debt obligations where it was economically attractive to do so, reducing debt outstanding to $9.5 billion by year-end 2003. Cash balances were over $10.6 billion at year-end 2003. Our strong financial position allows us to pursue any and all profitable investment opportunities that achieve acceptable returns.

ExxonMobil’s Approach Grows Shareholder Value

ExxonMobil’s core, fundamental objective is long-term growth in shareholder value. Our business strategies form the basis of ExxonMobil’s commitment to deliver superior shareholder value through growing dividends and long-term share price appreciation. Dividends paid per share have increased in each of the last 21 years, an unmatched record among international oil companies, reaching $0.98 per share in 2003. During 2003, we distributed more than $6.5 billion through dividend payments and increased share purchases to $5.0 billion (excluding spending to offset share issuance under benefit plans). The combination of dividends and share purchases represented a total yield of about 4.9 percent of the company’s equity market capitalization at the beginning of the year. During the last three years, $33 billion in dividends and share buybacks have been distributed to shareholders, representing 11 percent of ExxonMobil’s year-end 2000 market value.

Total shareholder return on ExxonMobil stock has consistently outpaced the S&P 500 index over the long-term. ExxonMobil shareholders have earned annualized returns of 13.3 percent and 16.2 percent during the last 10 and 20 years, respectively, compared with returns from the S&P 500 index of 11.1 percent and 13.0 percent in the same time periods.

The volatility of ExxonMobil’s stock price, a measure of the fluctuation of monthly returns around its average and one indicator of risk, equaled the volatility of the broadly diversified S&P 500 during the past 20 years, and has been well below that of our industry peers during that same time period.

(CHART)

Corporate 8 Exxon Mobil Corporation

DIVIDEND AND OTHER SHAREHOLDER INFORMATION


	2003		2002			2001			2000		1999
Net income per common share (dollars)		3.24		1.69			2.23			2.55		1.14
Net income per common share — assuming dilution (dollars)		3.23		1.68			2.21			2.52		1.12
Dividends per common share⁽¹⁾(dollars)
First quarter		0.23		0.23			0.22			0.22		0.208
Second quarter		0.25		0.23			0.23			0.22		0.208
Third quarter		0.25		0.23			0.23			0.22		0.208
Fourth quarter		0.25		0.23			0.23			0.22		0.220

Total		0.98		0.92			0.91			0.88		0.844

Annual dividend growth (percent)		6.5		1.1			3.4			4.3		1.3
Number of common shares outstanding (millions)
Average		6,634		6,753			6,868			6,953		6,906
Average — assuming dilution		6,662		6,803			6,941			7,033		7,036
Year end		6,568		6,700			6,809			6,930		6,955
Number of registered shareholders at year end (thousands)		659		678			699			719		779

Annual total shareholder returns⁽²⁾(percent)		20.5		(8.9	)		(7.6	)		10.2		12.5
Market quotations for common stock⁽³⁾(dollars)
High		41.13		44.58			45.84			47.72		43.63
Low		31.58		29.75			35.01			34.94		32.16
Average daily close		36.14		37.70			41.29			41.42		38.40
Year-end close		41.00		34.94			39.30			43.47		40.28

Cash dividends paid on common stock (millions of dollars)		6,515		6,217			6,254			6,123		5,836
Cash dividends paid on preferred stock (millions of dollars)		—		—			—			—		36

Total cash dividends paid (millions of dollars)		6,515		6,217			6,254			6,123		5,872
Cash dividends paid to net income (percent)		30		54			41			35		74
Cash dividends paid to cash flow⁽⁴⁾(percent)		23		29			27			27		39

⁽¹⁾		Dividends per common share for 1999 reflect the sum of the dividends paid by Exxon and Mobil divided by the number of shares that would have been outstanding for the periods, after adjusting the Mobil shares for the exchange ratio of 1.32015 shares of ExxonMobil common stock.

⁽²⁾		Total shareholder returns are the appreciation of the stock price over a year plus the value of the dividends, with dividend reinvestment, and excluding trading commissions and taxes. See Frequently Used Terms.

⁽³⁾		Market quotations for common stock reflect Exxon share prices through November 30, 1999, the effective date of the merger, and ExxonMobil share prices thereafter.

⁽⁴⁾		Cash flow from operations.

DISCIPLINED MANAGEMENT OF ANNUITY PLANS

ExxonMobil and its affiliates manage more than 100 pension plans. The funding arrangement for each plan depends on the prevailing practices and regulations of the countries where the company operates. In countries where the prevailing practice is to fund most pension obligations through separate assets or insurance arrangements, such as in the United States, Canada, and the United Kingdom, our plans meet or exceed the required funding levels as measured by relevant actuarial and government standards at the mandated measurement dates. In addition, all defined benefit pension plans, regardless of funding status, are fully supported by the financial strength of the Corporation or the sponsoring affiliate.

Our approach to managing the financial assets associated with these plans is consistent with the core principles followed in all ExxonMobil businesses. Our fund management reflects careful assessment of risks of various asset classes, diversification to minimize the portfolio’s risk, and a long-term orientation.

ExxonMobil is a capital-intensive, rather than a labor-intensive business. Pension expense represented only 4 percent of total operating costs in 2003. Pension expense is calculated based on U.S. GAAP, which requires certain assumptions, such as discount rate and long-term expected earnings. Assumptions are developed conservatively, are reviewed by third-party actuaries and senior management, and are well within the range of peer practice and actual experience. The long-term earning rate assumption for 2004 is 9 percent for the U.S. pension plan, the same as in 2003. Returns over the past 10- and 20-year periods were 11 and 12 percent, respectively.

Exxon Mobil corporation 9 Corporate

FUNCTIONAL EARNINGS


	2003 Quarters
(millions of dollars)	First			Second			Third			Fourth			2003			2002			2001			2000			1999
Net Income (U.S. GAAP)
Upstream
United States		1,259			907			883			856			3,905			2,524			3,933			4,542			1,873
Non-U.S.		4,434			1,931			1,819			2,413			10,597			7,074			6,803			8,143			4,371

Total		5,693			2,838			2,702			3,269			14,502			9,598			10,736			12,685			6,244

Downstream
United States		174			419			371			384			1,348			693			1,924			1,561			577
Non-U.S.		549			727			540			352			2,168			607			2,303			1,857			650

Total		723			1,146			911			736			3,516			1,300			4,227			3,418			1,227

Chemical
United States		16			128			25			212			381			384			298			644			738
Non-U.S.		271			311			205			264			1,051			446			409			517			616

Total		287			439			230			476			1,432			830			707			1,161			1,354

Corporate and financing		(213	)		(253	)		(193	)		2,169			1,510			(442	)		(142	)		(538	)		(511	)
Merger expenses		—			—			—			—			—			(275	)		(525	)		(920	)		(469	)
Discontinued operations		—			—			—			—			—			449			102			184			65
Extraordinary gain		—			—			—			—			—			—			215			1,730			—
Accounting change		550			—			—			—			550			—			—			—			—

Net income (U.S. GAAP)		7,040			4,170			3,650			6,650			21,510			11,460			15,320			17,720			7,910

Net income per common share (dollars)		1.05			0.63			0.55			1.01			3.24			1.69			2.23			2.55			1.14
Net income per common share — assuming dilution (dollars)		1.05			0.62			0.55			1.01			3.23			1.68			2.21			2.52			1.12

Merger Effects, Discontinued Operations, Accounting Change, and Other Special Items
Upstream
United States		—			—			—			—			—			—			—			—			—
Non-U.S.		1,700			—			—			—			1,700			(215	)		—			—			119

Total		1,700			—			—			—			1,700			(215	)		—			—			119

Downstream
United States		—			—			—			—			—			—			—			—			—
Non-U.S.		—			—			—			—			—			—			—			—			(120	)

Total		—			—			—			—			—			—			—			—			(120	)

Chemical
United States		—			—			—			—			—			—			—			—			—
Non-U.S.		—			—			—			—			—			—			—			—			—

Total		—			—			—			—			—			—			—			—			—

Corporate and financing		—			—			—			2,230			2,230			—			—			—			—
Merger expenses		—			—			—			—			—			(275	)		(525	)		(920	)		(469	)
Discontinued operations		—			—			—			—			—			449			102			184			65
Extraordinary gain		—			—			—			—			—			—			215			1,730			—
Accounting change		550			—			—			—			550			—			—			—			—

Corporate total		2,250			—			—			2,230			4,480			(41	)		(208	)		994			(405	)

Earnings Excluding Merger Effects, Discontinued Operations, Accounting Change, and Other Special Items
Upstream
United States		1,259			907			883			856			3,905			2,524			3,933			4,542			1,873
Non-U.S.		2,734			1,931			1,819			2,413			8,897			7,289			6,803			8,143			4,252

Total		3,993			2,838			2,702			3,269			12,802			9,813			10,736			12,685			6,125

Downstream
United States		174			419			371			384			1,348			693			1,924			1,561			577
Non-U.S.		549			727			540			352			2,168			607			2,303			1,857			770

Total		723			1,146			911			736			3,516			1,300			4,227			3,418			1,347

Chemical
United States		16			128			25			212			381			384			298			644			738
Non-U.S.		271			311			205			264			1,051			446			409			517			616

Total		287			439			230			476			1,432			830			707			1,161			1,354

Corporate and financing		(213	)		(253	)		(193	)		(61	)		(720	)		(442	)		(142	)		(538	)		(511	)

Corporate total		4,790			4,170			3,650			4,420			17,030			11,501			15,528			16,726			8,315

Earnings per common share (dollars)		0.71			0.63			0.55			0.68			2.57			1.70			2.27			2.40			1.20
Earnings per common share — assuming dilution (dollars)		0.71			0.62			0.55			0.68			2.56			1.69			2.25			2.37			1.18

Exxon Mobil Corporation 10 Corporate

RETURN ON AVERAGE CAPITAL EMPLOYED⁽¹⁾ BY BUSINESS


(percent)	2003		2002		2001		2000		1999
Upstream
United States		28.9		19.0		30.4		35.3		14.7
Non-U.S.		31.0		23.7		25.1		28.7		15.4

Total		30.4		22.3		26.8		30.8		15.2

Downstream
United States		16.7		8.6		25.0		19.6		6.9
Non-U.S.		11.5		3.4		12.4		9.4		3.3

Total		13.0		5.0		16.1		12.3		4.4

Chemical
United States		7.3		7.3		7.2		11.4		13.5
Non-U.S.		11.8		5.3		5.8		6.3		8.8

Total		10.2		6.1		6.4		8.4		10.9

Corporate and financing		—		—		—		—		—
Discontinued operations		—		63.2		7.2		12.3		4.0

Corporate total		20.9		13.5		17.8		20.6		10.3

⁽¹⁾

Capital employed consists of shareholders’ equity and debt, including ExxonMobil’s share of amounts applicable to equity companies. See Frequently Used Terms.

AVERAGE CAPITAL EMPLOYED⁽¹⁾ BY BUSINESS


(millions of dollars)	2003		2002		2001		2000		1999
Upstream
United States		13,508		13,264		12,952		12,864		12,728
Non-U.S.		34,164		29,800		27,077		28,354		28,383

Total		47,672		43,064		40,029		41,218		41,111

Downstream
United States		8,090		8,060		7,711		7,976		8,354
Non-U.S.		18,875		17,985		18,610		19,756		19,679

Total		26,965		26,045		26,321		27,732		28,033

Chemical
United States		5,194		5,235		5,506		5,644		5,471
Non-U.S.		8,905		8,410		8,333		8,170		6,991

Total		14,099		13,645		13,839		13,814		12,462

Corporate and financing		6,637		4,878		6,399		3,198		605
Discontinued operations		—		710		1,412		1,501		1,625

Corporate total		95,373		88,342		88,000		87,463		83,836

Average capital employed applicable to equity companies included above		15,587		14,001		13,902		15,330		14,694

⁽¹⁾

Average capital employed is the average of beginning- and end-of-year business segment capital employed. See Frequently Used Terms.

(PIE CHART)

Exxon Mobil Corporation 11 Corporate

NET INVESTMENT IN PROPERTY, PLANT, AND EQUIPMENT AT YEAR END


(millions of dollars)	2003		2002		2001		2000		1999
Upstream
United States		16,992		16,924		16,697		16,216		16,249
Non-U.S.		41,735		34,772		29,980		29,600		31,940

Total		58,727		51,696		46,677		45,816		48,189

Downstream
United States		9,714		9,238		9,012		9,048		9,443
Non-U.S.		19,852		17,682		16,548		17,682		19,531

Total		29,566		26,920		25,560		26,730		28,974

Chemical
United States		5,068		5,155		5,079		5,045		5,124
Non-U.S.		5,047		4,754		4,611		4,890		4,845

Total		10,115		9,909		9,690		9,935		9,969

Other/Discontinued operations		6,557		6,415		7,675		7,348		6,911

Corporate total		104,965		94,940		89,602		89,829		94,043

DEPRECIATION AND DEPLETION EXPENSES


(millions of dollars)	2003		2002		2001		2000		1999
Upstream
United States		1,571		1,597		1,447		1,426		1,342
Non-U.S.		4,072		3,551		3,221		3,469		3,497

Total		5,643		5,148		4,668		4,895		4,839

Downstream
United States		601		583		598		594		697
Non-U.S.		1,548		1,399		1,476		1,489		1,670

Total		2,149		1,982		2,074		2,083		2,367

Chemical
United States		410		414		408		397		402
Non-U.S.		368		348		289		281		274

Total		778		762		697		678		676

Other		477		418		409		345		293

Corporate total		9,047		8,310		7,848		8,001		8,175

OPERATING COSTS EXCLUDING MERGER EXPENSES AND DISCONTINUED OPERATIONS


(millions of dollars)	2003		2002		2001		2000		1999
Production and manufacturing expenses		21,260		17,831		17,743		17,600		16,264
Selling, general, and administrative		13,396		12,356		12,898		12,044		13,132
Depreciation and depletion		9,047		8,310		7,848		8,001		8,175
Exploration		1,010		920		1,175		936		1,246

Subtotal		44,713		39,417		39,664		38,581		38,817
ExxonMobil’s share of equity company expenses		3,937		3,800		3,832		4,355		4,835

Total operating costs		48,650		43,217		43,496		42,936		43,652

Corporate 12 Exxon Mobil Corporation

CONSOLIDATED BALANCE SHEET AT YEAR END⁽¹⁾


(millions of dollars)	2003			2002			2001			2000			1999
Assets
Current assets
Cash and cash equivalents		10,626			7,229			6,547			7,080			1,688
Notes and accounts receivable, less estimated doubtful accounts		24,309			21,163			19,549			22,996			19,155
Inventories
Crude oil		2,203			1,854			1,849			2,155			2,414
Products and merchandise		5,462			4,973			4,894			5,089			4,956
Materials and supplies		1,292			1,241			1,161			1,060			1,122
Prepaid taxes and expenses		2,068			1,831			1,681			2,019			1,806

Total current assets		45,960			38,291			35,681			40,399			31,141

Investments and advances		15,535			12,111			10,768			12,618			14,544
Property, plant, and equipment, at cost, less accumulated depreciation and depletion		104,965			94,940			89,602			89,829			94,043
Other assets, including intangibles — net		7,818			7,302			7,123			6,154			4,793

Total assets		174,278			152,644			143,174			149,000			144,521

Liabilities
Current liabilities
Notes and loans payable		4,789			4,093			3,703			6,161			10,570
Accounts payable		16,918			14,984			13,328			15,943			14,132
Accrued liabilities		11,527			10,202			9,534			10,812			11,360
Income taxes payable		5,152			3,896			3,549			5,275			2,671

Total current liabilities		38,386			33,175			30,114			38,191			38,733

Long-term debt		4,756			6,655			7,099			7,280			8,402
Annuity reserves		9,609			11,202			7,331			6,835			7,469
Accrued liabilities		5,283			5,252			5,144			5,099			5,433
Deferred income tax liabilities		20,118			16,484			16,359			16,442			16,251
Deferred credits and other long-term obligations		2,829			2,511			1,141			1,166			1,079
Equity of minority and preferred shareholders in affiliated companies		3,382			2,768			2,825			3,230			3,688

Total liabilities		84,363			78,047			70,013			78,243			81,055

Shareholders’ Equity
Benefit-plan-related balances		(634	)		(450	)		(159	)		(235	)		(298	)
Common stock		4,468			4,217			3,789			3,661			3,403
Earnings reinvested		115,956			100,961			95,718			86,652			75,055
Accumulated other non-owner changes in equity
Cumulative foreign exchange translation adjustment		1,421			(3,015	)		(5,947	)		(4,862	)		(2,300	)
Minimum pension liability adjustment		(2,446	)		(2,960	)		(535	)		(310	)		(299	)
Unrealized gains/(losses) on stock investments		511			(79	)		(108	)		(17	)		31
Common stock held in treasury		(29,361	)		(24,077	)		(19,597	)		(14,132	)		(12,126	)

Total shareholders’ equity		89,915			74,597			73,161			70,757			63,466

Total liabilities and shareholders’ equity		174,278			152,644			143,174			149,000			144,521

⁽¹⁾

The consolidated financial statements shown on pages 13 through 15 should be read in the context of the notes thereto provided in Appendix A of the Corporation’s 2004 Proxy Statement. The notes are an integral part of these statements.

Exxon Mobil Corporation 13 Corporate

CONSOLIDATED STATEMENT OF INCOME⁽³⁾


(millions of dollars)	2003		2002		2001		2000		1999
Revenues and Other Income
Sales and other operating revenue
Petroleum and natural gas
Petroleum products, including excise taxes		173,173		149,526		153,335		164,510		134,846
Crude oil		24,515		20,406		22,423		29,532		20,252
Natural gas		13,989		10,315		12,292		11,472		7,969
Other		5,164		4,269		4,702		4,558		4,843

Total petroleum and natural gas		216,841		184,516		192,752		210,072		167,910

Chemical products⁽¹⁾		20,190		16,408		15,943		17,501		13,777
Other		23		25		20		23		72

Sales and other operating revenue⁽²⁾		237,054		200,949		208,715		227,596		181,759

Income from equity affiliates		4,373		2,066		2,174		2,434		1,646
Other income		5,311		1,491		1,896		1,816		1,348

Total revenues and other income		246,738		204,506		212,785		231,846		184,753

Costs and Other Deductions
Crude oil and product purchases		107,658		90,950		92,257		108,913		76,991
Production and manufacturing expenses		21,260		17,831		17,743		17,600		16,264
Selling, general, and administrative expenses		13,396		12,356		12,898		12,044		13,132
Depreciation and depletion		9,047		8,310		7,848		8,001		8,175
Exploration expenses		360		345		495		223		403
Dry holes		360		345		495		223		403
Other		650		575		680		713		843

Total exploration expenses		1,010		920		1,175		936		1,246
Merger-related expenses		—		410		748		1,406		625
Interest expense		207		398		293		589		694
Excise taxes⁽²⁾		23,855		22,040		21,907		22,356		21,646
Other taxes and duties		37,645		33,572		33,377		32,708		34,765
Income applicable to minority and preferred interests		694		209		569		412		145

Total costs and other deductions		214,772		186,996		188,815		204,965		173,683

Income Before Income Taxes		31,966		17,510		23,970		26,881		11,070
Income taxes
U.S. federal		2,589		1,048		2,532		3,132		608
Other		8,417		5,451		6,435		7,943		2,617

Total income taxes		11,006		6,499		8,967		11,075		3,225

Income from continuing operations		20,960		11,011		15,003		15,806		7,845

Discontinued operations, net of income tax		—		449		102		184		65
Extraordinary gain, net of income tax		—		—		215		1,730		—
Cumulative effect of accounting change, net of income tax		550		—		—		—		—

Net Income		21,510		11,460		15,320		17,720		7,910

Memo: effective income tax rate (percent)		36.4		39.8		39.3		42.6		31.9


⁽¹⁾ Chemical products supplied to petroleum subsidiaries not included above		5,063		3,902		3,369		4,002		2,136
⁽²⁾ Excise taxes included in sales and other operating revenue		23,855		22,040		21,907		22,356		21,646

⁽³⁾ The consolidated financial statements shown on pages 13 through 15 should be read in the context of the notes thereto provided in Appendix A of the Corporation’s 2004 Proxy Statement. The notes are an integral part of these statements.

Corporate 14 Exxon Mobil Corporation

CONSOLIDATED STATEMENT OF CASH FLOWS⁽¹⁾


(millions of dollars)	2003			2002			2001			2000			1999
Cash Flows from Operating Activities
Net income
Accruing to ExxonMobil shareholders		21,510			11,460			15,320			17,720			7,910
Accruing to minority and preferred interests		694			209			569			412			145
Cumulative effect of accounting change, net of income tax		(550	)		—			—			—			—
Adjustments for non-cash transactions
Depreciation and depletion		9,047			8,310			7,848			8,001			8,175
Deferred income tax charges/(credits)		1,827			297			650			10			(1,439	)
Annuity provisions		(1,489	)		(500	)		349			(425	)		28
Accrued liability provisions		264			(90	)		149			(237	)		384
Dividends received greater than/(less than) equity in current earnings of equity companies		(402	)		(170	)		78			(387	)		146
Extraordinary gain, before income tax		—			—			(194	)		(2,038	)		—
Changes in operational working capital, excluding cash and debt
Reduction/(increase) — Notes and accounts receivable		(1,286	)		(305	)		3,062			(4,832	)		(3,478	)
— Inventories		(100	)		353			154			(297	)		50
— Prepaid taxes and expenses		42			32			118			(204	)		177
Increase/(reduction) — Accounts and other payables		1,130			365			(5,103	)		5,411			3,046
Ruhrgas transaction		(2,240	)		1,466			—			—			—
All other items — net		51			(159	)		(111	)		(197	)		(131	)

Net cash provided by operating activities		28,498			21,268			22,889			22,937			15,013

Cash Flows from Investing Activities
Additions to property, plant, and equipment		(12,859	)		(11,437	)		(9,989	)		(8,446	)		(10,849	)
Sales of subsidiaries, investments, and property, plant, and equipment		2,290			2,793			1,078			5,770			972
Additional investments and advances		(809	)		(2,012	)		(1,035	)		(1,648	)		(1,476	)
Collection of advances		536			898			1,735			985			387
Additions to other marketable securities		—			—			—			(41	)		(61	)
Sales of other marketable securities		—			—			—			82			42

Net cash used in investing activities		(10,842	)		(9,758	)		(8,211	)		(3,298	)		(10,985	)

Cash Flows from Financing Activities
Additions to long-term debt		127			396			547			238			454
Reductions in long-term debt		(914	)		(246	)		(506	)		(901	)		(341	)
Additions to short-term debt		715			751			705			500			1,870
Reductions in short-term debt		(1,730	)		(927	)		(1,212	)		(2,413	)		(2,359	)
Additions/(reductions) in debt with less than 90-day maturity		(322	)		(281	)		(2,306	)		(3,129	)		2,210
Cash dividends to ExxonMobil shareholders		(6,515	)		(6,217	)		(6,254	)		(6,123	)		(5,872	)
Cash dividends to minority interests		(430	)		(169	)		(194	)		(251	)		(219	)
Changes in minority interests and sales/(purchases) of affiliate stock		(247	)		(161	)		(401	)		(227	)		(200	)
Common stock acquired		(5,881	)		(4,798	)		(5,721	)		(2,352	)		(670	)
Common stock sold		434			299			301			493			348

Net cash used in financing activities		(14,763	)		(11,353	)		(15,041	)		(14,165	)		(4,779	)

Effects of exchange rate changes on cash		504			525			(170	)		(82	)		53

Increase/(decrease) in cash and cash equivalents		3,397			682			(533	)		5,392			(698	)
Cash and cash equivalents at beginning of year		7,229			6,547			7,080			1,688			2,386

Cash and cash equivalents at end of year		10,626			7,229			6,547			7,080			1,688

⁽¹⁾

Exxon Mobil Corporation 15 Corporate

CAPITAL AND EXPLORATION EXPENDITURES⁽¹⁾


(millions of dollars)	2003		2002		2001		2000		1999
Upstream
Exploration
United States		275		295		471		285		271
Non-U.S.		940		1,015		1,188		1,222		1,631

Total		1,215		1,310		1,659		1,507		1,902

Production⁽²⁾
United States		1,842		2,057		1,947		1,574		1,458
Non-U.S.		8,758		6,949		5,157		3,818		5,030

Total		10,600		9,006		7,104		5,392		6,488

Power and Coal
United States		8		5		5		6		12
Non-U.S.		165		73		48		28		26

Total		173		78		53		34		38

Total Upstream (Exploration, Production, Power and Coal)		11,988		10,394		8,816		6,933		8,428

Downstream
Refining
United States		998		670		524		632		475
Non-U.S.		768		685		514		703		550

Total		1,766		1,355		1,038		1,335		1,025

Marketing
United States		216		255		370		372		347
Non-U.S.		739		761		836		808		921

Total		955		1,016		1,206		1,180		1,268

Pipeline/Marine
United States		30		55		67		73		83
Non-U.S.		30		24		11		30		25

Total		60		79		78		103		108

Total Downstream (Refining, Marketing, and Pipeline/Marine)		2,781		2,450		2,322		2,618		2,401

Chemical
United States		333		575		432		351		663
Non-U.S.		359		379		440		1,117		1,580

Total Chemical		692		954		872		1,468		2,243

⁽¹⁾		See Frequently Used Terms.
⁽²⁾		Including related transportation.

(BAR CHART)

Corporate 16 Exxon Mobil Corporation

Capital and Exploration Expenditures⁽¹⁾ (continued)


(millions of dollars)	2003		2002		2001		2000		1999
Other Operations and Administrative
United States		64		45		126		45		93
Non-U.S.		—		32		32		7		72

Total other operations and administrative		64		77		158		52		165

Discontinued Operations
Non-U.S.		—		80		143		97		70

Grand total		15,525		13,955		12,311		11,168		13,307

Total Capital and Exploration Expenditures
United States		3,766		3,957		3,942		3,338		3,402
Canada		1,601		1,513		1,262		1,004		1,204
Latin America		217		441		717		677		744
Europe		3,046		2,919		2,564		2,255		3,255
Asia-Pacific		1,410		1,470		1,496		2,250		2,498
Other Eastern Hemisphere		5,485		3,655		2,330		1,644		2,204

Grand total		15,525		13,955		12,311		11,168		13,307

⁽¹⁾

See Frequently Used Terms.

(BAR CHART)

DISTRIBUTION OF CAPITAL AND EXPLORATION EXPENDITURES


(millions of dollars)	2003		2002		2001		2000		1999
Consolidated Companies’ Expenditures
Capital expenditures		12,857		11,499		9,943		9,017		10,666

Exploration costs charged to expense United States		256		220		213		133		232
Non-U.S.		735		679		941		780		993
Depreciation on support equipment⁽¹⁾		19		21		21		23		21

Total exploration expenses		1,010		920		1,175		936		1,246

Total consolidated companies’ capital and exploration expenditures (excluding depreciation on support equipment)		13,848		12,398		11,097		9,930		11,891
ExxonMobil’s Share of Non-Consolidated Companies’ Expenditures
Capital expenditures		1,651		1,518		1,203		1,216		1,384
Exploration costs charged to expense		26		39		11		22		32

Total non-consolidated companies’ capital and exploration expenditures		1,677		1,557		1,214		1,238		1,416

Grand total		15,525		13,955		12,311		11,168		13,307

⁽¹⁾

Not included as part of total Capital and Exploration Expenditures, but included as part of Exploration Expenses in the Consolidated Statement of Income, page 14.

(PHOTO)

Safety, Health & Environment 2003 HIGHLIGHTS • Record fewest safety incidents • Fewest environmental spills • Best energy efficiency performance in our refining business Guiding Principle ExxonMobil is committed to maintaining high standards of safety, health, and environmental care. We comply with all applicable environmental laws and regulations, and apply responsible standards where laws and regulations do not exist. Energy and chemicals are essential to society. ExxonMobil has shown that we can produce these valuable products while protecting the health and safety of people, and safeguarding the environment. Our goal is to drive injuries, illnesses, and operational incidents as close to zero as possible.

ExxonMobil is working to reduce greenhouse gas emissions by progressing breakthrough technology, such as in advanced fuels, fuel cells, and new combustion technology. Researchers utilize lasers to analyze the composition of a hydrocarbon flame to improve the efficiency and reduce the emissions from internal combustion engines.

Risk Management and Security

Risks are inherent in the energy and petrochemical businesses, including risks associated with safety, health, and the environment. ExxonMobil recognizes these risks and takes a systematic managed approach to mitigate their impact. In fact, the same rigor and discipline that underpins our investment program are also used in our approach to the management of our performance in safety, health, and the environment. ExxonMobil’s commitment is also supported by our investment in related science and technology, which will help improve our safety, health, and environmental performance.

Our Operations Integrity Management System (OIMS) is the primary tool that we use to conduct our operations and to assess and improve our safety, health, and environmental performance. OIMS enables us to measure our progress in these areas, plan future improvements and ensure management accountability for results. OIMS is designed to drive all operational incidents as close to zero as possible. OIMS also conforms with the International Standards Organization’s standard for environmental management systems (ISO 14001).

ExxonMobil has had a long-standing commitment to the protection of its people, facilities, information, and other assets. Security measures take into account perceived risk, cost and practicality, compliance with applicable laws, and recognition of social norms. To ensure that the Corporation’s expectations are met, security is being fully integrated into OIMS.

ExxonMobil’s technology helps improve our safety, health, and environmental performance.

(PIE CHART)

Safety and Health

ExxonMobil has long been an energy industry leader in safety performance. We are committed to the highest standards of safety, health, and environmental performance. We believe that providing a safe work environment for our employees contributes to and is indicative of superior performance in other aspects of our operations.

In 2003, we had the fewest number of safety incidents in ExxonMobil history. We remain committed to learn from all incidents to achieve our goal that “nobody gets hurt”.

(BAR CHART)

Environment

ExxonMobil is committed to continuously improving our environmental performance. We demonstrated a record fewest number of marine and total spill incidents in 2003. Our business units around the world develop detailed environmental business plans to identify and manage environmental risks and issues within local business plans and decisions.

We are taking a number of significant actions to improve our efficiency and reduce greenhouse gas emissions in our operations and in customer use of our products. For example, in the near-term, we are capturing significant energy efficiency improvements with our Global Energy Management System (GEMS) and cogeneration investments. In fact, we demonstrated a record-best energy efficiency performance in our refining business in 2003. ExxonMobil is an industry leader in the use of cogeneration, a much more efficient way to make steam and power than by conventional processes. We currently have interests in over 80 cogeneration facilities that produce nearly 2,900 megawatts of electricity. We are adding another $1 billion of investments that will increase our cogeneration capacity by another 30 percent by the end of 2005. We also worked with industry trade organizations to develop consistent greenhouse gas (GHG) measurement methodology and a transparent reporting format in order to report GHG emissions.

(BAR CHART)

We are actively preparing to meet GHG regulatory requirements that are coming into effect in Europe and to participate in emissions trading as needed to ensure compliance.

In the longer term, we are progressing technologies that will significantly reduce emissions from the use of our products by our customers. The majority of GHG emissions arise from consumer use of fuels (87 percent), with the remainder from petroleum industry operations (13 percent). We are working with automobile manufacturers, universities, and government agencies to develop advanced fuels, fuel cells, and new combustion technologies. We are committed to further develop breakthrough technology to reduce GHG emissions through research projects, including initiating the largest privately funded academic technology initiative in history — the Global Climate and Energy Project (G-CEP) led by Stanford University. For more information, refer to the web site http://gcep.stanford.edu/.

As a leading supplier of clean-burning natural gas, ExxonMobil is well positioned to contribute to efforts to address greenhouse gas emissions through fuel switching. Natural gas is both cleaner burning and emits less GHG than oil or coal. The substitution of natural gas for coal in electricity generation is one of the most significant opportunities to reduce greenhouse gas emissions economically.

(GRAPH)

More Information

For more information regarding our commitment to safety, health, and the environment, refer to the following documents available on our website at www.exxonmobil.com.

• Corporate Citizenship Report (CCR)

• Report on Energy Trends, Greenhouse Gas Emissions, and Alternative Energy

(EXXONMOBIL LOGO)

Exxon Mobil Corporation 19 Safety, Health & Environment

Technology

ExxonMobil’s unparalleled commitment to the development and application of industry-leading technologies provides the business with opportunities to discover, produce, refine, and market oil and gas resources not available to competitors. Our technology development efforts are matched to our business needs through a rigorous prioritization and stewardship process that ensures decisions are based on sound technical and economic evaluation. Our emphasis is on proprietary research. We balance our investment between technology extensions, which can be rapidly deployed to our existing operations, and breakthrough research that can have a significant and lasting impact on the Corporation and industry.

UPSTREAM TECHNOLOGY

Broadest Portfolio of Upstream Technologies

ExxonMobil maintains the industry’s largest proprietary upstream technology research and development effort, investing more than $200 million annually. These technologies support the full spectrum of upstream activities, from earliest exploration to enhanced recovery and field depletion and are applied to the full range of the world’s largest and most diverse upstream portfolio.

We maintain industry leadership in all of the fundamental technical elements of the upstream business such as basin analysis; seismic acquisition, processing and interpretation; reservoir modeling and simulation; drilling, and facilities design, and gas commercialization technologies through dedicated ongoing research efforts. Initiatives on promising new breakthrough technologies are pursued when ideas with extraordinary potential are identified.

(PHOTO OF SEDIMENT DEPOSITION TANK)

Sediment deposition tank at the Upstream Research Company. ExxonMobil pioneers technologies for integrating laboratory experiments, numerical models, and knowledge of modern environments. If successful, these innovative techniques could lead to more accurate predictions of the distribution of reservoir rock properties in the subsurface and lower the cost of finding and developing new fields.

Optimum Technology Deployment

ExxonMobil’s Upstream functional organization enables the most effective, lowest cost, and timely deployment of technology to all of our projects worldwide. Rigorous processes within the Upstream functional companies ensure that every project plan appropriately incorporates the latest technologies. Each company has active learning processes in place to rapidly gather and disseminate technical best practices to leverage ExxonMobil’s unparalleled experience.

Training on a continuous basis is a cornerstone of ExxonMobil’s commitment to the development and application of cutting-edge technologies. A new 100 thousand square foot Upstream Training Center in Houston, Texas, is scheduled for completion in mid-2004. This new, state-of-the-art facility will help ensure that our employees are equipped to effectively apply the latest technology to ExxonMobil assets worldwide.

(3 DIMENSIONAL BASIN)

Gas versus liquids prediction. Developing a three-dimensional understanding of a basin, including hydrocarbon sources, migration pathways, trapping elements, and reservoirs provides focus and efficiency to exploration efforts and has long been a key component of ExxonMobil’s Upstream research. ExxonMobil’s proprietary Stellar basin-modeling software has been combined with other technologies to generate a process for more accurately predicting the types of hydrocarbons that might be present in a prospect. This capability has influenced drilling programs in west Africa and elsewhere, helping reduce the overall risk of drilling an uneconomic well.

(PHOTO OF EARLY PRODUCTION SYSTEM)

Early Production System (EPS) at Xikomba in Angola Block 15.ExxonMobil is an industry leader in the use of an EPS.EPS’s are used by ExxonMobil to accelerate production from new discoveries months or years ahead of more traditional, full field installations.ExxonMobil’s unique functional organization recognized the opportunity, identified the technology elements, and efficiently deployed EPS’s at three fields in west Africa during late 2002 and 2003.

New Opportunities Through Upstream Technology

Superior technology, applied across each of the company’s business functions, has created profitable new opportunities. Capabilities, such as those that enable the recognition of new prospects, the ability to drill and produce in ever deeper and more hostile environments, and those that improve the recovery of unconventional resources are creating entirely new business opportunities worldwide. New technology developments that reduce cost and development cycle time not only improve overall profitability, but make previously high-cost resources competitive. ExxonMobil’s broad portfolio of upstream technology is a critical advantage in competing for upstream opportunities in resource-rich countries.

(PHOTOS OF EQUIPMENT AND OPERATIONS)

Tight gas stimulation research. ExxonMobil has developed and patented new techniques to rapidly stimulate large vertical intervals (several thousand feet) in wellbores to reduce the cost of producing gas from low permeability reservoirs. ExxonMobil has also successfully applied and further optimized the technology of employing multiple fracture treatments in deep horizontal wells.It has been proven as a feasible technique to develop extremely tight and deep gas formations where vertical wells with massive hydraulic fractures are not economic.Continued success in the development and refinement of these techniques could enable the profitable production of significant volumes of natural gas in the western United States and elsewhere. Large membrane LNG carrier. ExxonMobil has pioneered LNG production and transportation capabilities that will reduce the unit cost of LNG by over 30 percent relative to current technology.These cost reductions have been a result of larger (+60 percent), more efficient manufacturing trains and larger ships (+40 percent). To fully capture the cost advantage of these large ships, ExxonMobil performed state-of-the-art testing and analytical work to validate the feasibility of membrane tanks that are larger than those presently used by industry.As a result of cost efficiencies, the Corporation is expanding the profitable range of LNG deliveries from Qatar, where ExxonMobil has been working with Qatar Petroleum to develop the North Field, the world’s largest non-associated gas field. Sakhalin drilling operations. The ability to operate cost effectively in harsh arctic environments will be increasingly important in the future.More than 25 years of arctic technology development and experience supports the profitable development of resources in remote areas such as offshore Sakhalin Island, Russia.ExxonMobil technology contributed to the design of an ice-resistant offshore platform. In addition, proprietary tools enabled the design of extended-reach wells that are developing oil and gas reserves over five miles offshore from onshore drill sites.

Exxon Mobil Corporation 21 Technology

DOWNSTREAM & CHEMICAL TECHNOLOGY

Collaboration with Engine Manufacturers Leads to Development of Products that Reduce Emissions

ExxonMobil’s competitive leadership in advanced lubricants and fuels research is recognized by many of the world’s leading engine manufacturers. We are collaborating with several companies on research into how to significantly reduce emissions, particularly nitrogen oxide (NOx) and particulate matter (PM), while at the same time improving engine efficiency — a critical technical challenge for both of our industries. Advancements in this area are critical. By 2007 to 2008, many markets around the world will require up to a 90 percent reduction from today’s levels of automotive emissions.

(PHOTOS REFINERY EQUIPMENT)

Reducing emissions. ExxonMobil is working with Original Equipment Manufacturers to investigate a range of technologies that will reduce NOx emissions.The effort combines the expertise of the companies in the areas of combustion science, computer modeling, exhaust catalysis and engine control.We have modified the ignition quality tester, a critical device for testing engine performance, to better study the interaction of fuel molecules with new strategies that could reduce NOx from engine exhaust.We are also working on new catalyst materials for use in further reducing NOx emissions that come from the engine tailpipe.Successfully combining these technologies will speed the development and commercialization of new high efficiency diesel engine systems. High-quality basestocks. The new Synesstic Alkylated Naphthalene (AN) basestocks product line, designed to enhance the performance of synthetic lubricants, is now being offered to our customers.When used as blendstock with other synthetic fluids such as polyalphaolefins, Synesstic AN products enhance the stability and performance of many industrial and automotive lubricants. By combining our extensive expertise in refinery processes with proprietary catalysts developed in our research facilities, we have developed cutting-edge, cost-effective solvent and catalytic process lube technologies.This new proprietary catalyst technology was recently installed in an existing reactor at our Fawley, United Kingdom, refinery.In June, the refinery began producing Visom, a very high-quality lubricant base oil, designed to meet the new stringent requirements of European high-performance engine oils.

Leveraging Technology to Meet Market Needs

ExxonMobil has a long history of developing new technologies in refining and chemical manufacturing, to both improve efficiency and provide new solutions to meet market needs.

In refining, ExxonMobil’s SCANfining technology has been selected for over 30 ExxonMobil and licensee units to enable production of low sulfur gasoline. Once these units are operational, nearly 1 million barrels per day of low sulfur gasoline will be produced using this technology. The SCANfining process can help achieve gasoline pool sulfur specifications as low as 10 parts per million, while maintaining octane levels.

More than 20 aromatics producers throughout the world have licensed ExxonMobil’s xylene isomerization catalyst. Our new XyMax-2 is a proprietary zeolite shape-selective catalyst that improves xylene isomerization for aromatics manufacture. When installed in existing conventional xylene isomerization units, XyMax-2 technology can increase paraxylene capacity up to 40 percent with minimal hardware modification.

Technology 22 Exxon Mobil Corporation

(PHOTO OF VISTAMAX)

New products with enhanced properties. ExxonMobil launched the new family of Vistamaxx specialty elastomers, a revolutionary new platform that combines the company’s strengths in catalyst technology, product design and process development to deliver new levels of performance across a broad range of customer applications.The new polymers are derived from ExxonMobil’s proprietary Exxpol metallocene catalyst technology and polymerization reactor processes. Vistamaxx products can improve the elasticity, softness, adhesion, strength and durability of our customers’products.The new products give ExxonMobil one of the broadest portfolios of ethylene elastomers in the world. ExxonMobil pioneered the use of metallocene catalysts for polyethylene and polypropylene in 1995.As we continue to innovate and build our Exxpol catalyst platform, we introduced second-generation Exceed and Achieve polyolefins. These new polymers with improved mechanical properties and processability benefit customers in many markets, including the designers and creators of packaging and non-woven fabrics.

Strengthening Research and Development Capability

ExxonMobil’s research laboratories are developing new technologies that will significantly enhance our ability to develop new materials and lead to faster-paced development of new chemicals, lubricants and fuels products.

(PHOTOS OF ROBOTICS AND TECHNOLOGY CENTERS)

High Throughput Experimentation (HTE) is a combination of technologies in experimental design, materials synthesis and testing, combined with advanced data analysis and visualization tools that have delivered exciting results in the development of new chemical catalysts.ExxonMobil and Symyx Technologies have formed an alliance that leverages the in-house technical strengths of each company and will lead to the application of this technology across our entire Downstream and Chemical portfolio.HTE uses micro-reactors and robotics to generate hundreds of unique materials at a time and test them automatically.This approach delivers results much faster than traditional research at a fraction of the cost, greatly enhancing the company’s competitive advantage. Technology centers. ExxonMobil Chemical scientists and researchers are located in a network of technology centers where they develop products and processes to meet the needs of the market.Working in partnership with customers, and using our multi-layer blown-film lines, they recently developed enhanced film structures.These new films combine lower cost, outstanding toughness, and exceptional optical properties. Technology marketing capability. Badger Licensing LLC, a joint venture to develop, market, and license ethylbenzene (EB) and cumene technologies, was formed by ExxonMobil Chemical and Stone & Webster, Inc.These licensed processes are based on ExxonMobil’s proprietary zeolite catalysts.The joint venture combines ExxonMobil catalyst and process expertise with Badger development capabilities to enhance technology in the field of EB, cumene, and derivative chemical products.Almost half of the world’s chemical-grade benzene supply is processed using these technologies from Badger Licensing LLC.

Exxon Mobil Corporation 23 Technology

Exploration, Development, Production, and Gas and Power Marketing

Upstream Strategies

Although business conditions and opportunities change from year to year, ExxonMobil employs a set of long-term fundamental strategies in its worldwide exploration, development, production, and gas and power marketing businesses. These strategies are supported by an unparalleled commitment to technology. Superior execution of these strategies through our global functional organization across what we believe is the best Upstream asset portfolio in the industry distinguishes ExxonMobil from competition. These key strategies are:

• Maximize profitability of existing oil and gas production

• Identify and pursue all attractive exploration opportunities

• Invest in projects that deliver superior returns

• Capitalize on growing natural gas and power markets

Industry Conditions

• World oil demand increased by about 1.4 million barrels per day in 2003. World natural gas consumption increased by about 6 billion cubic feet per day in 2003.

• Brent oil prices averaged almost $29 per barrel in 2003, up about $4 per barrel versus 2002.

• Natural gas prices in the United States were volatile, but on average were 74 percent higher versus 2002. In Europe, natural gas prices were up 23 percent versus 2002 and up 7 percent excluding foreign exchange effects.

2003 HIGHLIGHTS

Earnings were $14.5 billion, up 51 percent and an all-time record, primarily due to higher oil and natural gas prices throughout the year and the gain on the transfer of shares in Ruhrgas AG.

Return on average capital employed was 30.4 percent in 2003, averaging 25 percent over the past five years.

Profit per oil-equivalent barrel was $9.25, excluding income from Upstream power and coal activities.

Total liquids and gas production available for sale remained at 4.2 million oil-equivalent barrels per day, exceeding all competitors.

Proved oil and gas reserve additions totaled 1.7 billion oil-equivalent barrels, replacing 105 percent of reserves produced, including asset sales (107 percent with sales excluded). This is the 10th year in a row that ExxonMobil has more than replaced reserves produced.

At 22.0 billion oil-equivalent barrels, ExxonMobil’s proved reserves are the highest in the industry.

Resource base additions totaled 2.1 billion oil-equivalent barrels in 2003, with key contributions from Qatar, Angola, Canada, Nigeria, Brazil, Kazakhstan, and the U.S.

Finding costs were $0.58 per oil-equivalent barrel.

Major projects expected to develop up to 25 billion net oil-equivalent barrels of resources are underway, providing a solid basis for future profitable production growth.

(2003 OPERATING AREA CONTRIBUTIONS)


Statistical Recap	2003		2002		2001		2000		1999
Earnings (millions of dollars)		14,502		9,598		10,736		12,685		6,244
Liquids production (thousands of barrels per day)		2,516		2,496		2,542		2,553		2,517
Natural gas production available for sale (millions of cubic feet per day)		10,119		10,452		10,279		10,343		10,308
Oil-equivalent production (thousands of barrels per day)		4,203		4,238		4,255		4,277		4,235
Proved reserves replacement, excluding sales (percent)		107		118		111		112		106
New field resource additions (millions of oil-equivalent barrels)		2,110		2,150		2,490		2,120		1,530
Average capital employed (millions of dollars)		47,672		43,064		40,029		41,218		41,111
Return on average capital employed (percent)		30.4		22.3		26.8		30.8		15.2

Capital and exploration expenditures (millions of dollars)		11,988		10,394		8,816		6,933		8,428

Exxon Mobil Corporation 25 Upstream

UPSTREAM COMPETITIVE ADVANTAGES

ExxonMobil’s industry-leading, world-class and geographically diverse Upstream portfolio spans nearly 40 countries. It includes a resource base totaling 72 billion oil-equivalent barrels, 4.2 million oil-equivalent barrels per day of production in 25 countries, in excess of 100 major production and development projects, nearly 13,300 megawatts of electrical generation capacity, and global gas and power marketing activities.

Strong Diverse Production Base

Large, highly profitable, and established oil and gas operations in North America, Europe, Asia-Pacific, west Africa, and the Caspian form the strong foundation of our portfolio. These areas include long-life producing fields that have significant near-term potential for discovering and developing new near-field opportunities using existing infrastructure. Our existing asset base includes over 60 thousand productive wells from 8,300 reservoirs and nearly 600 offshore platforms. We invest in active work programs to maintain this profitable base. ExxonMobil’s production portfolio includes a wide variety of producing assets, and this diversity of experience provides a foundation for efficient incorporation of new production.

(2003 PRODUCTION BY REGION)

Wide Range of Profitable Growth Opportunities

ExxonMobil maintains the largest portfolio of development and exploration opportunities in the industry, which enables the selectivity required to optimize total profitability and mitigate overall political and technical risks in the Upstream segment.

As future development projects bring new resources on-line, we expect a shift in the geographic mix of production volumes between now and 2010. For example, ExxonMobil holds a strong position and is investing in resource-rich regions including west Africa, the Caspian, the Middle East, and Russia.

In addition to a changing geographic mix, we also expect a change in the type of opportunities from which volumes are produced. Production from non-conventional sources using arctic technology, deepwater drilling and production systems, heavy oil recovery processes, and LNG is expected to grow from 20 percent to 40 percent of our output between now and 2010.

Exploration acreage totals 51 million acres in 30 countries. In addition, initiatives are underway worldwide to participate in emerging, high potential but previously inaccessible regions offering the potential for future growth opportunities.

Upstream 26 Exxon Mobil Corporation

Commitment to Technology

ExxonMobil’s long-standing commitment to the development and application of leading-edge Upstream technology is unmatched in the industry and provides a sustainable competitive advantage. Technology is the lifeblood of our business. It allows us to maximize value by increasing recoverable resources, reducing costs, and creating new markets for our products. We manage technology development and application with the same disciplined approach we use in making all of our business decisions. Our approach to technology and our track record of developing new industry-leading technology serve us well in countries where we have an established business presence, and in emerging areas where we are positioned to be the partner of choice. Technology is, and will continue to be, fundamental to our business success.

(PORTFOLIO BY OPPORTUNITY TYPE)

Unique Global Functional Organization

ExxonMobil has an experienced, dedicated and diverse workforce of exceptional quality. We are well organized to execute our strategies. Our functional organization, structured around the life cycle of an asset, provides a significant competitive advantage. This allows us to establish priorities on a global basis, effectively leverage the transfer of technology and best practices across our vast worldwide portfolio, focus on operational excellence in all aspects of our business and efficiently deploy experienced people with the right skills. This approach yields significant advantages in both cost efficiencies and our ability to recognize and respond to the changing business environment.

Financial Strength and Disciplined Approach

ExxonMobil’s financial strength and access to capital is a competitive advantage that allows us to pursue all attractive projects that achieve acceptable returns. We continually invest in our existing asset base to increase resource recovery, maximize profitability and extend economic life. Potential projects are tested over a wide range of economic scenarios to ensure resiliency in expected returns. They are evaluated for strategic fit and long-term advantage versus competition, and they undergo a rigorous reappraisal process to ensure relevant lessons are learned and improvements are incorporated into future decisions. This disciplined approach to making investments and managing assets clearly distinguishes us from competition.

We devote the same discipline to managing our operations around the world every day and maintain a relentless focus on operational excellence, efficiency, and productivity gains.

(PHOTO LNG SHIPS)

Exxon Mobil Corporation 27 Upstream

RESOURCES AND PROVED RESERVES

Resource Base

The size, quality and breadth of ExxonMobil’s total inventory of discovered oil and gas resources are major strengths of the company. ExxonMobil’s discovered resource base now stands at 72 billion oil-equivalent barrels (31 percent proved). It has grown by over 25 percent, or over 15 billion oil-equivalent barrels, during the last 10 years.

The resource base is updated annually to add new discoveries and resource acquisitions and to reflect any changes in estimates of existing resources. ExxonMobil refers to new discoveries and acquisitions of discovered, but undeveloped, resources as new field resource additions. The company includes only those resources it believes are likely to be produced in the future. Adjustments to existing field resources reflect changes in recovery expectations resulting from new technologies and any other revisions (positive or negative) resulting from field drilling and ongoing evaluation. During the update process, volumes produced or sold during the year are removed from the resource base.

Resources are classified as either proved or non-proved. Non-proved resources are moved to proved reserves once technical and commercial confidence support a development decision.

(UPSTREAM ADVANTAGES)

Resource base, resources, recoverable oil, recoverable hydrocarbons, recoverable resources: include quantities of oil and gas that may not yet be classified as proved reserves, but are likely to be moved to proved reserves and produced in the future.

Proved oil and gas reserves: estimated quantities of crude oil, natural gas, and natural gas liquids that geologic and engineering data show will be recoverable with reasonable certainty given existing economic and operating conditions (i.e., prices and costs at the date of the estimate). ExxonMobil records proved reserves in conjunction with significant funding commitments made toward the development of the reserves.

• Includes 100 percent of majority-owned affiliates’ proved reserves.

• Includes ExxonMobil’s percentage ownership of equity company proved reserves.

• Condensate is included in crude oil reserves.

• Can only consider price changes provided for by existing contracts.

• Can assume substantial new investment will be required.

In this report, we include proven reserves from Syncrude tar sands operations in Canada as part of our total proved reserves. Syncrude reserves are reported separately as a mining operation in SEC filings.

Reserve bookings for certain deepwater fields may be made prior to conducting flow tests due to safety and cost implications of such tests. In those situations, other industry-accepted analyses are used.

Proved developed reserves: volumes recoverable through existing wells with existing equipment and operating methods.

Proved undeveloped reserves: volumes expected to be recovered as a result of future investments.

Upstream 28 Exxon Mobil Corporation

Proved Reserves

At year-end 2003, the resource base included 22 billion oil-equivalent barrels of proved oil and gas reserves. ExxonMobil added 1.7 billion oil-equivalent barrels to proved reserves in 2003, while producing 1.6 billion oil-equivalent barrels, and replacing 107 percent of reserves produced, excluding sales. Including sales and Syncrude production, we replaced 105 percent of reserves produced. This is the 10th consecutive year that the company’s reserves replacement has exceeded 100 percent.

(NEW FIELD RESOURCE ADDITIONS)

Excluding sales, the company has added 19 billion oil-equivalent barrels to proved reserves over the last 10 years (18 billion oil-equivalent barrels including sales), more than replacing production. Over the last five years, reserves have been added at an average replacement cost of $4.77 per oil-equivalent barrel.

(FINDING COSTS DELCINE)

ExxonMobil has consistently made net upward revisions to estimates of proved reserves in existing fields. These revisions have averaged 662 million oil-equivalent barrels per year over the last five years, and have resulted from effective reservoir management and the application of new technology. In 2003, upward revisions were made at fields such as Zafiro in Equatorial Guinea, Guntong in Malaysia, Yoho in Nigeria, and Groningen in the Netherlands.

Development drilling in 2003 within existing fields is expected to add 603 million oil-equivalent barrels of reserves at a cost of less than $3.15 per oil-equivalent barrel.

(NEW FIELD RESOURCE ADDITIONS)

The development of new fields discovered through exploration and extensions of existing fields has added 1 billion oil-equivalent barrels per year to proved reserves over the past five years. These include proved additions in 2003 in the United Kingdom, Norway, Kazakhstan, Qatar, Russia, Angola, and Azerbaijan.

ExxonMobil’s proved reserve base of 22 billion oil-equivalent barrels equates to a reserve life at current production rates of nearly 14 years.

Resource Base Changes


				5-Year
(billions of oil-equivalent barrels)	2003			Average
New field resource additions/acquisitions		2.1			2.1
Existing fields		0.1			0.3
Production		(1.6	)		(1.6	)
Sales		(0.3	)		(0.1	)

Net change		0.3			0.7

Proved Reserves Additions


			5-Year
(millions of oil-equivalent barrels)	2003		Average
Revisions		619		662
Discoveries/extensions		961		990
Improved recovery		116		127
Purchases		2		1

Total		1,698		1,780
Production		1,587		1,607
Reserve replacement (percent)		107		111

Exxon Mobil Corporation 29 Upstream

MAJOR DEVELOPMENT PROJECTS


	Target Peak
	Production (Gross)				ExxonMobil Working
Project Start-Ups	Liquids		Gas		Interest
	(kBD)		(MCFD)		(%)
2003
Angola — Jasmim		50		—		20	l
Angola — Xikomba		90		—		40	n
Canada — Aurora Phase 2		90		—		25	l
Canada — Sable Offshore Energy Tier 2		15		365		60	n
Chad — Doba		225		—		40	n
Equatorial Guinea — Zafiro Southern Expansion EPS		110		—		71	n
Malaysia — Angsi Phase 3		30		15		50	n
Malaysia — Bintang		5		305		50	n
Nigeria — Amenam/Kpono		115		—		10	l
Norway — Fram West		60		70		25	l
Norway — Grane		220		—		26	l
Norway — Mikkel		25		175		33	l
Norway — Ringhorne		90		35		100	n
U.K. — Carrack		5		160		49	l
U.K. — Penguins		40		70		50	l
U.S. — Princess Phase I		55		110		16	l
2004 (Projected)
Angola — Kizomba A		250		—		40	n
Nigeria — Bonga		200		150		20	l
Norway — Sleipner West Alpha North		15		195		32	l
Norway — Sleipner West Compression		20		110		32	l
Qatar — RasGas Train 3		30		725		29	t
U.K. — Goldeneye		30		260		39	l
U.K. — Scoter		5		100		44	l
2005 (Projected)
Azerbaijan — Azeri-Chirag-Gunashli (ACG)		1,000		—		8	l
Nigeria — Etim/Asasa B PM		25		—		40	n
Qatar — Al Khaleej Gas		40		740		100	n
Qatar — RasGas Train 4		45		740		30	t
Russia — Sakhalin I (Chayvo)		250		1,000		30	n
U.K. — Arthur		—		120		70	n
U.S. — Orion		55		—		36	l
U.S. — Princess Phase II		35		120		16	l
U.S. — Thunder Horse		250		200		25	l


	Target Peak
	Production (Gross)				ExxonMobil Working
Project Start-Ups	Liquids		Gas		Interest
	(kBD)		(MCFD)		(%)
2006 (Projected)
Angola — Dalia		225		—		20	l
Angola — Kizomba B		250		—		40	n
Canada — Cold Lake CEO		20		—		100	n
Canada — Syncrude — SW Quad		90		—		25	l
Indonesia — Banyu Urip		165		20		*	n
Kazakhstan — Tengiz Expansions		440		100		25	l
Malaysia — Guntong Hub		55		715		50	n
Netherlands — Groningen Clusters		—		1,840		30	l
Nigeria — Bosi Oil		50		—		56	n
Nigeria — East Area Additional Recovery		145		—		40	n
Nigeria — Erha		150		—		56	n
Nigeria — Usan		115		—		30	l
Norway — Kristin		140		500		11	l
Norway — Statfjord Late Life		70		370		21	l
U.S. — Ursa Pressure Maintenance		45		55		16	l
2007+ (Projected)
Angola — Kizomba C		250		—		40	n
Angola — LNG		50		800		14	l
Angola — Rosa Area		100		—		20	l
Australia — Kipper/Tuna		25		270		32	n
Canada — Kearl Lake		180		—		*	n
Canada — Mackenzie Gas Project		15		800		44	n
Italy — Tempa Rossa		50		10		25	l
Kazakhstan — Kashagan		1,200		—		17	l
Nigeria — Bonga SW		145		110		20	l
Nigeria — East Area Natural Gas Liquids		40		—		51	n
Nigeria — Satellite Projects		45		—		40	n
Nigeria — Usari D & E		30		—		40	n
Nigeria — Usari WIP		30		—		40	n
Norway — Ormen Lange		30		2,100		7	l
Norway — Tyrihans		70		235		9	l
Qatar — Al Khaleej Gas (Future Phases)		120		925		100	t
Qatar — Qatargas II		160		2,500		15-30	t
Qatar — RasGas Train 5		45		740		30	t
Qatar — RasGas Trains 6 & 7		160		2,500		30	t
U.S. — Alaska Gas Pipeline		—		4,500		36	**
U.S. — Point Thomson		75		—		36	n

Operatorship:

n = ExxonMobil Operated

t = Joint Operation

l = Operated by Others

* Under negotiation.

** Not yet determined.

(WORLDWIDE PRODUCTION PORTFOLIO)

Upstream 30 Exxon Mobil Corporation

UPSTREAM OVERVIEW

Global Gas and Power Marketing

To capitalize on growing gas markets, ExxonMobil’s Gas and Power Marketing Company has a global focus and clear mandate to add value from the gas source through to the customer.

The objectives are to:

• Identify, develop, and capture markets to support the growth of equity natural gas volumes

• Maximize the value of natural gas, natural gas liquids, helium, CO₂, power sales, and assets

• Minimize delivered cost of natural gas, natural gas liquids, and power

Leveraging Global Expertise to Maximize Value

ExxonMobil is the world’s largest nongovernment marketer of equity (own production) gas. Sales of equity production in 2003 exceeded 10 billion cubic feet per day, and total gas sales were almost 16 billion cubic feet per day. Our steps to focus on selling equity production gas have resulted in lower total gas sales, since we reduced our purchase and resale volumes, which historically occurred through participation in Ruhrgas AG and other activities. Sales were made in over 25 countries and across five continents, in every major gas market in the world. The company participated in LNG joint ventures with a combined gross capacity of 22 million metric tons per year, nearly 20 percent of global industry capacity, making ExxonMobil one of the largest LNG suppliers in the world.

(LNG MARKETS GROWING)

ExxonMobil has access to a broad portfolio of both established gas resources, which are close to existing gas markets, and new gas field developments that will be commercialized to meet growing demand in both mature and emerging markets. The total resource base is 182 trillion cubic feet of net discovered resources (including 55 trillion cubic feet of proved reserves), which provides a solid foundation for profitable growth.

The company has leading-edge LNG, gas-to-liquids, gas pipeline, and power generation technologies. In addition, the company is pursuing industry-first technology aimed at expanding opportunities for commercializing natural gas. Our expertise in integrating these advanced technologies with global market requirements, strong financial position, and our understanding of transportation networks, project economics, and regulatory structures provides a substantial competitive advantage. The ability to participate effectively in nearly all sectors of the gas business around the world is essential to optimizing a substantial base business and commercializing our large remote resources in an ever-changing market.

ExxonMobil has significant holdings in the electric power business, with interests in nearly 13,300 megawatts of generation capacity, including 2,900 megawatts of cogeneration. In addition, more than 800 megawatts of cogeneration are currently under construction. We also have created a power Center of Expertise to efficiently manage our spending on energy, evaluate new opportunities for generation, especially cogeneration, and assist in gas monetization initiatives.

(CHARTS AND GRAPHS)

Exxon Mobil Corporation 31 Upstream

NORTH AMERICA

ExxonMobil has the industry’s largest portfolio of proved reserves and production in North America. North American operations contributed about 36 percent of ExxonMobil’s 2003 worldwide production on an oil-equivalent basis and 37 percent of Upstream earnings.

(NORTH AMERICAN HIGHLIGHTS)

United States

ExxonMobil is one of the largest oil and gas producers and reserve holders in the United States. The company’s well-established portfolio is geographically diverse with significant positions in all major producing regions including Alaska, onshore Gulf Coast, shelf and deepwater areas of the Gulf of Mexico, onshore and offshore California, and the mid-continent region. U.S. properties contributed 23 percent of the company’s net oil and gas production in 2003 and accounted for 23 percent of proved reserves at year end.

The U.S. Upstream continues to provide a significant contribution to ExxonMobil profitability through a sizable but selective drilling program, investments in the existing base, as well as in attractive new projects, and continued operational efficiency improvements. Technology and quality reservoir management enhance the long-term performance of each field. Base production decline is mitigated through active workover and development drilling programs. In 2003, this program included the drilling of nearly 1,300 wells (gross). We continue to focus on divesting mature, higher-cost properties to prioritize our resources on the highest-value opportunities.

In 2003, further operational efficiencies were realized through the consolidation of the company’s United States production activities into one organization.

(GRAPHIC)

Development of this deepwater discovery (water depth 6,300 feet) in the central Gulf of Mexico will include a semi-submersible floating production, drilling, and quarters unit with up to 20 direct access subsea wells plus additional subsea wells connected from locations nearby. Oil exports will occur via the joint-venture Proteus and Endymion pipeline systems to southern Louisiana. Drilling and construction activities are underway, with start-up projected for 2005. Thunder Horse High-pressure acid gas injection will replace existing sulfur recovery units at the Shute Creek Treating Facility in La Barge, Wyoming. Currently under construction, the project includes two injection wells and a 110 megawatt power cogeneration unit. The project will increase the existing plant capacity from 650 to 720 million cubic feet per day. Start-up of the first cogeneration turbine is planned for early 2004, with acid gas injection commencing later in the year. Expected Production Rate (gross) Target Acid Gas Injection Rate

Upstream 32 Exxon Mobil Corporation

In the western United States, ExxonMobil operates a multi-well tight gas exploration and production program in the Piceance Basin of northwestern Colorado. Exploration drilling will continue through 2004 to assess the gas resources on the company’s extensive acreage holdings. Ongoing development drilling and production activities are advancing commercialization of these resources through the application of new multi-stage fracturing technology.

In Alaska, ExxonMobil is the largest resource owner in the Prudhoe Bay field (ExxonMobil interest, 36.4 percent). The ExxonMobil-operated Point Thomson gas-injection project (ExxonMobil interest, 36 percent) is designed to produce condensate in advance of major gas sales from the North Slope. Engineering design has progressed and additional efforts are underway to advance commercialization of this resource.

Deepwater Gulf of Mexico

ExxonMobil has one of the leading deepwater acreage positions with interests in 593 deepwater blocks (about 3.4 million gross acres). With producing fields contributing 361 thousand oil-equivalent barrels per day of gross production, development projects underway, participation in high-potential discoveries, and a strong inventory of prospects, ExxonMobil is well positioned for future growth.

(MAP)

Exploration drilling on the St. Malo prospect (ExxonMobil interest, 3.8 percent) in Walker Ridge resulted in a significant discovery. Additional drilling is planned on several prospects that have been delineated within the 86 nearby ExxonMobil interest blocks. ExxonMobil acquired interest in 30 deepwater and 12 shallow-water leases in 2003, further strengthening our position in high-potential areas of the Gulf of Mexico.

In 2003, initial production began from the first phase of the Princess subsea development (ExxonMobil interest, 16 percent) located in 3,800 feet of water. This initial development is tied back to the Ursa tension leg platform and consists of three subsea wells that will develop over 100 million oil-equivalent barrels (gross) and is targeted to produce at a peak rate of 55 thousand barrels of oil and 110 million cubic feet of gas per day. Further development is planned that is expected to raise the total gross ultimate recovery to over 175 million oil-equivalent barrels.

Construction of the world’s largest semi-submersible production and drilling vessel continues for the Thunder Horse development (ExxonMobil interest, 25 percent).

Canada

ExxonMobil is the largest crude oil producer in Canada, a leading natural gas producer, and holds the largest resource position through its wholly-owned affiliate ExxonMobil Canada and its majority-owned affiliate Imperial Oil (ExxonMobil interest, 69.6 percent). The company has a significant presence in major development projects offshore eastern Canada and a well-established production base with expansion opportunities in western Canada.

Exxon Mobil Corporation 33 Upstream

North America (continued)

Conventional Oil and Gas

The ExxonMobil-operated Sable Offshore Energy Project (SOEP) (ExxonMobil interest, 51 percent; Imperial Oil interest, 9 percent) consists of six fields that are estimated to contain recoverable hydrocarbons of approximately 2.1 trillion cubic feet of natural gas and over 90 million barrels of natural gas liquids (gross). Production in 2003 was over 430 million cubic feet per day of natural gas (gross) and 16 thousand barrels per day of liquids (gross) from the initial three-field development.

Natural gas from SOEP is transported to markets in the Canadian Maritime Provinces and the northeastern United States via the Maritimes and Northeast Pipeline (ExxonMobil interest, 12.5 percent).

(GRAPHIC)

Sable Offshore Energy Project Tier 2


Expected Production Rate (gross) Liquids			15 kBD
Natural Gas			365 MCFD
Total Project Investment			$2.4 billion
ExxonMobil Working Interest			60%
Scheduled Start-Up			2003-2006

Located 125 miles off Nova Scotia in 70-250 feet of water, the Sable Tier 2 project will add satellite platforms, interconnecting pipelines, compression facilities and satellite processing upgrades to the existing Tier 1 development. Alma, the first of the Tier 2 developments, is connected to the host platform, Thebaud, via a 32 mile flowline and is designed to produce 120 million cubic feet of gas per day and 3 thousand barrels of associated liquids per day. First production from Alma occurred in November 2003.

The Alma design is being utilized in the second Tier 2 development, South Venture, which is expected to add 140 million cubic feet of gas production per day. Start-up of South Venture is expected in 2005.

The Terra Nova development (ExxonMobil interest, 22 percent) located 200 miles southeast of St. John’s, Newfoundland, is producing 134 thousand barrels of oil per day (gross). Located in 300 feet of water, Terra Nova consists of a unique, harsh-environment-equipped Floating Production, Storage, and Offloading (FPSO) vessel and 24 subsea wells that are expected to recover 380 million oil-equivalent barrels (gross).

The company also operates and holds a 33.1 percent interest in the Hibernia oil field. Hibernia, located 195 miles southeast of St. John’s, Newfoundland, holds an estimated 670 million barrels (gross) of remaining recoverable oil. Optimization and debottlenecking efforts increased production capacity from 180 thousand barrels per day to 215 thousand barrels per day (gross). Also offshore Newfoundland, commercialization studies continue on the Hebron oil discovery (ExxonMobil interest, 38 percent).

ExxonMobil Canada and Imperial Oil successfully participated in a tender for eight high-potential frontier deepwater exploration blocks in the Orphan Basin located offshore Newfoundland (ExxonMobil interest, 25 percent; Imperial Oil interest, 25 percent). Blocks were awarded in January 2004.

(PHOTO)

Heavy Oil and Tar Sands Development

The Cold Lake field (Imperial Oil interest, 100 percent) and the Syncrude tar sands operation (Imperial Oil interest, 25 percent) in Alberta account for the majority of Imperial’s oil production in western Canada.

At Cold Lake, steam is injected into the formation, which increases the mobility of the heavy oil in the reservoir, permitting it to be produced to the surface. The injection-production cycle is repeated many times to maximize economic recovery. The application of leading-edge technologies providing enhanced resource description, identification of reservoir segments not yet contacted by steam, and improved recovery prediction have increased reserves recovery potential and improved economics at Cold Lake.

Upstream 34 Exxon Mobil Corporation

The Syncrude operation involves three main processes: open pit mining, extraction of crude bitumen, and upgrading to produce high-quality crude oil. Syncrude Sweet Blend, the final product of the operation, is a 32 degree API gravity crude that has a market value approximately equal to West Texas Intermediate crude. Since its start-up more than 20 years ago, the Syncrude tar sand facility has become the largest in the world, producing more than 210 thousand barrels of crude oil per day (gross) in 2003. Net interest proved reserves total about 780 million barrels, providing a reserve life of about 40 years at current production rates. Staged expansion is underway to further develop reserves in the area and expand the upgrading facilities. This expansion is planned to increase production to over 350 thousand barrels of upgraded crude oil per day (gross). The next expansion phase is scheduled to start up in 2006.

ExxonMobil holds interests in three large Kearl Lake oil sands mining leases through its interest in Imperial Oil as well as through its wholly-owned affiliate. A 200 well delineation program is underway on the Imperial Oil leases to further define the resource and support the conceptual design for the project. In 2003, activity was initiated on environmental, public consultation and regulatory work to support a development plan application.

North American Gas Market

In North America, ExxonMobil is a leading producer and marketer of equity gas with production volumes totaling 3.2 billion cubic feet per day. ExxonMobil sells gas to a broad range of customers, including local distribution companies, public utilities, major industrial consumers, and power producers.

ExxonMobil is well positioned to meet gas demand growth with supplies in major producing basins, and exploration and development activities near key markets. This includes a leading position in the gas resources in the Mackenzie Delta region of northern Canada and on the North Slope of Alaska. Led by Imperial Oil, the Mackenzie Delta Producers Group and the Aboriginal Pipeline Group are working together to pursue economic and timely development of a Mackenzie Valley pipeline, with start-up planned before the end of the decade. Progress was made in 2003 on key regulatory milestones and funding elements. Efforts also continue towards commercialization of gas from the Alaskan North Slope.

LNG is forecast to play an increasingly important role in future North American gas supply. A Heads of Agreement was signed with Qatar to supply approximately 15.6 million tons per year, or 2 billion cubic feet per day of gas (ExxonMobil interest, 30 percent) to the U.S. beginning in 2009. In 2003, ExxonMobil acquired options to purchase land for LNG offloading and regasification terminals at three locations on the U.S. Gulf Coast (Sabine and Corpus Christi, Texas, and Mobile, Alabama). The process to obtain regulatory approvals has already been initiated for the Sabine and Corpus Christi sites.

ExxonMobil has a significant presence in the North American natural gas liquids business, managing over 600 thousand barrels per day. The company is active in all aspects of the business from gas production through processing, transportation, storage, fractionation, refining and chemical feedstocks, and propane marketing. ExxonMobil holds interests in 85 gas plants with net processing capability of 4.2 billion cubic feet of gas per day.

Additionally, ExxonMobil is the largest wholesale marketer of helium in the world. The company’s U.S. operations produce nearly 4 million cubic feet per day of helium.

(MACKENZIE DELTA)

The Mackenzie Gas Project targets development of approximately 6 trillion cubic feet of gas from three onshore arctic fields including the Imperial Oil-operated Taglu field (Imperial Oil interest, 100 percent) and Parsons field (ExxonMobil interest, 25 percent). In addition to drilling and facility installations, the project plans call for construction of a 100 mile gathering system, two 300 mile transmission lines (gas and gas liquids) to Norman Wells, and a 500 mile gas pipeline to link with the existing gas transmission network in Alberta, Canada. Currently in the design stage, project start-up is anticipated in 2009.

Exxon Mobil Corporation 35 Upstream

EUROPE

ExxonMobil is the largest net producer of hydrocarbons in Europe with daily net production of about 580 thousand barrels of liquids and 4.5 billion cubic feet of gas. The company has exploration and/or production operations in France, Germany, Italy, the Netherlands, Norway, and the United Kingdom. Extensive North Sea oil and natural gas production operations and significant onshore natural gas production are among the company’s key assets. ExxonMobil’s operations in Europe accounted for almost one-third of the company’s 2003 net oil and gas production and 36 percent of Upstream earnings.

(MAP)

United Kingdom and Norway Developments

ExxonMobil has an interest in more than 100 producing fields in the U.K. and Norwegian sectors of the North Sea.

In the Norwegian sector of the North Sea, the ExxonMobil-operated Ringhorne platform (ExxonMobil interest, 100 percent) started production in February 2003. The 24-slot production, drilling, and quarters platform is tied back to the Balder Floating Production Unit for final processing and export. The Balder/Ringhorne area oil production will be accelerated through installation of two 15 mile pipelines to transfer Ringhorne Jurassic production to the existing Jotun A FPSO where processing, storage, and export will occur. Peak production from the platform is expected to be 90 thousand barrels per day of oil and 35 million cubic feet per day of natural gas.

The Grane project (ExxonMobil interest, 25.6 percent) is expected to develop 780 million barrels of oil (gross) utilizing an integrated production, drilling, and quarters platform. The first of 12 pre-drilled Grane wells was tied back to the platform in September 2003, resulting in first production of 30 thousand barrels of oil per day (gross). Production from the field is expected to peak at over 220 thousand barrels of oil per day (gross).

The Fram West project (ExxonMobil interest, 25 percent) is expected to develop 120 million oil-equivalent barrels (gross) using subsea wells tied back to an existing platform. First production from Fram West occurred in October 2003 with anticipated peak volumes of 60 thousand barrels of oil per day and 70 million cubic feet of gas per day (gross).

Two Norwegian deepwater new field development projects are underway at Kristin (ExxonMobil interest, 10.5 percent) and Ormen Lange (ExxonMobil interest, 7 percent). These new developments are projected to start up in 2006 and 2007, respectively.

The Statfjord Late Life project (ExxonMobil interest, 21 percent) is a capacity enhancement project to transition Statfjord operations from reservoir pressure maintenance to reservoir depressurization for enhanced oil and gas recovery. Incremental recovery is expected to be over 400 million oil-equivalent barrels (gross). Start-up is targeted for late 2006.

In the U.K. North Sea, the Penguins project (ExxonMobil interest, 50 percent) started production in January 2003. The project is expected to recover 79 million oil-equivalent barrels (gross).

The Goleneye project, located in the central North Sea, is one of nine major ExxonMobil-interest European developments to start up over the next several years.

(PHOTO)

(BAR CHART)

Upstream 36 Exxon Mobil Corporation

Europe (continued)

In November 2003, production began from the Carrack project (ExxonMobil interest, 49 percent). This phased, six well development in the southern North Sea area is anticipated to produce about 50 million oil-equivalent barrels (gross). The project optimized the use of existing infrastructure by utilizing a normally unmanned 10-slot wellhead platform that is tied back via an 82 kilometer pipeline to the Clipper platform.

Three projects in the U.K. North Sea are scheduled to commence production in 2004 and 2005. The Goldeneye project (ExxonMobil interest, 39 percent), is located in the central North Sea. In December 2003, two wells from the Scoter project (ExxonMobil interest, 44 percent) produced at a gross combined rate exceeding 200 million cubic feet of gas per day. These wells utilize existing infrastructure in the Shearwater platform area. The Arthur project (ExxonMobil interest, 70 percent), is progressing through the front-end engineering and design phase, following the successful outcome of the Camelot East near-field wildcat discovery in 2003. The field is located in the southern North Sea and operated by ExxonMobil. The project is intended to recover over 130 billion cubic feet (gross) of gas reserves with up to three wells. Project funding is planned for early 2004, with start of production targeted for early 2005.

(CHART)

The Kristin project is designed to develop high-pressure, high-temperature hydrocarbon resources estimated at over 450 million oil-equivalent barrels (gross). The project includes multiple subsea templates tied back to a semi-submersible production vessel in approximately 1,200 feet of water. Plans call for produced gas to flow to the Aasgard 42 inch gas export line and for condensate to be exported via a 150 mile pipeline to Aasgard C. Start-up is scheduled for early 2006. Located 120 miles offshore Norway in 2,300-3,600 feet of water, the Ormen Lange project is designed to develop over 13 trillion cubic feet of gas (gross) from the Ormen Lange field. Technically challenging due to uneven seabed terrain and cold water flow concerns, the project scope includes subsea wells flowing to a new onshore gas processing plant at Nyhamna, Norway. Plans call for a 390 mile, 42 inch trunkline to connect the plant to the offshore Sleipner Norwegian Continental Shelf hub and a new 340 mile, 44 inch trunkline to connect Sleipner to the U.K. at Easington. Start-up is targeted for late 2007. The Goldeneye project is expected to develop 135 million oil-equivalent barrels (gross) using an unmanned wellhead platform with the full wellstream moved to shore via a 20 inch flowline. The project consists of five wells in 400 feet of water and production will be sent to the existing St. Fergus gas plant for separation.

Upstream 38 Exxon Mobil Corporation

Other European Activities

ExxonMobil has significant gas holdings onshore in the Netherlands and Germany, and is the largest gas producer in both countries. Capacity is being optimized to meet market demand and peak-day needs. A multi-year upgrade of the Groningen facilities, along with additional compression for future deliverability, is progressing in the Netherlands. In Germany, ExxonMobil is enhancing capacity by progressing plans for a 205 square kilometer 3D seismic survey, as well as near-field wildcat and appraisal well drilling.

Offshore the Netherlands, the K/15-FK project (ExxonMobil interest, 23 percent) began production in August 2003. The project is anticipated to recover 22 million oil-equivalent barrels (gross). K/15-FG-North also began production in December 2003, and is expected to recover 5 million oil-equivalent barrels (gross).

The Tempa Rossa field (ExxonMobil interest, 25 percent) in the Italian Southern Apennines contains an estimated ultimate recovery of 200 million barrels of heavy oil (gross). Front-end engineering and design are progressing for a centralized oil and gas processing facility. Plans are to expand production via an existing pipeline to storage and loading facilities at Taranto, Italy. Start-up is anticipated in 2007.

European Gas Market

ExxonMobil is the largest nongovernment marketer of equity gas in Europe and holds a substantial asset base. ExxonMobil’s gas sales position in Europe is supported by an experienced marketing organization, extensive marketing infrastructure, and ownership interests in 27 thousand miles of onshore gas pipelines, 300 billion cubic feet of gas storage capacity, 650 megawatts of cogeneration power facilities and 12 gas processing plants. In addition, ExxonMobil manages natural gas liquids volumes of over 320 thousand barrels per day.

ExxonMobil’s broad portfolio of gas production, treating, transmission, storage, and marketing assets, as well as our commercial experience in the region, position us well in the changing European market.

Several significant commercial restructuring activities are progressing to further position ExxonMobil to compete effectively in the future European gas market. These changes anticipate the impact of the European Gas Directives and enable ExxonMobil to directly market significantly more of its equity gas production.

Effective January 2003, unitization of the offshore and onshore Norwegian gas pipelines was implemented. ExxonMobil’s ownership share in the unitized grid is 9.8 percent and our ownership rights were extended to 2028. ExxonMobil now independently markets all of its Norwegian equity gas production following the dissolution of the Norwegian government-mandated Gas Sales Committee.

ExxonMobil and Shell have agreed to transfer the gas marketing activities from their 50/50 German joint venture, BEB Erdgas und Erdsl GmbH (BEB) into separate ExxonMobil and Shell companies, which will independently market gas to customers. BEB is presently active in sales and purchases as well as transportation and storage of natural gas in Germany. ExxonMobil is the operator of BEB’s production assets. The split of BEB’s gas marketing business is expected to be effective in 2004.

ExxonMobil continues to optimize its holdings in Europe. The company’s shareholding in Ruhrgas AG was transferred to E.ON AG, which resulted in a $1.7 billion net earnings benefit to ExxonMobil. During the first half of 2003, ExxonMobil sold its U.K. industrial and commercial gas marketing business.

With the second European Gas Directive, discussions were held throughout 2003 with the Dutch government to determine the appropriate restructuring of Gasunie, the large Dutch gas transmission and marketing company (ExxonMobil interest, 25 percent). The restructuring discussions are now focused on the legal separation of Gasunie’s transmission system from its marketing activities by mid-2004.

LNG is forecast to play an increasingly important role in European gas supply and ExxonMobil is active in developing terminals to facilitate the rapid growth of LNG demand. In the U.K., ExxonMobil and Qatar Petroleum are developing the South Hook LNG receiving terminal at ExxonMobil’s former refinery site in Milford Haven, Wales. This terminal is the likely access point for the 15.6 million tons per year Qatargas II LNG project (ExxonMobil share, up to 30 percent). Key permits were received during 2003 for this development. In Italy, Qatar Petroleum and ExxonMobil acquired a 90 percent interest in the offshore Adriatic Liquefied Natural Gas Terminal (ExxonMobil interest, 45 percent) to regassify 6.0 million tons per year of LNG. Also in southern Europe, ExxonMobil is assessing potential terminal development opportunities at its refinery sites in Fos (France) and Augusta (Italy).

Exxon Mobil Corporation 39 Upstream

AFRICA

ExxonMobil has a substantial and profitable production base, as well as significant growth potential in west Africa with Upstream activities in Angola, Cameroon, Chad, Equatorial Guinea, Niger, Nigeria, and the Republic of Congo. Active areas include production in Nigeria, Equatorial Guinea, Chad, Angola, and Cameroon; major new developments underway in Angola, Chad, and Nigeria; and a world-class acreage position in the high-potential deepwater provinces of west Africa.

In deepwater areas offshore west Africa, ExxonMobil holds interests in 16 blocks totaling nearly 11 million gross acres. Seventeen deepwater exploration wells were completed off west Africa during 2003, adding 480 million barrels (net) to ExxonMobil’s resource base.

(MAP)

Angola

ExxonMobil has interests in five deepwater blocks that cover 4.5 million gross acres. The company and its co-venturers have announced 36 discoveries in Angola, which represent world-class development opportunities with recoverable resource potential of 11.5 billion oil-equivalent barrels (gross).

(MAP)

On ExxonMobil-operated Block 15 (ExxonMobil interest, 40 percent), first production was achieved in November 2003 at the Xikomba development. Xikomba production is through an Early Production System (EPS) designed to produce 90 thousand barrels of oil per day (gross) that will ultimately develop approximately 100 million barrels of oil (gross). Three additional major development projects are being progressed on Block 15, Kizomba A, B, and C. These developments are intended collectively to develop over 2.5 billion barrels of oil at a total investment of around 10 billion dollars (gross).

(MAP)

On Block 17 (ExxonMobil interest, 20 percent), production from the Girassol field continued at over 200 thousand barrels of oil per day (gross). Girassol produces to an FPSO in 4,500 feet of water. Jasmim, a subsea tieback to the Girassol FPSO, began production in November 2003. Expected peak production is up to 50 thousand barrels per day (gross). Design work on the Rosa development, which will also produce to the Girassol FPSO, continued in 2003. Engineering and design for the Dalia project, which will be the next development on Block 17, is nearing completion.

(MAP)

n ExxonMobil Interests

Δ Announced Deepwater Discovery Wells

l Development Projects
(Not to Scale)

(PHOTO)

The Tension Leg Platform installed in Angola Block 15 is part of the worldclass Kizomba A project.

Upstream 40 Exxon Mobil Corporation

ExxonMobil is working with our joint-venture partners to develop Angola’s first LNG project with a planned capacity of 5 million tons per year (ExxonMobil interest, 13.6 percent), which includes use of associated gas from Angola’s deepwater oil operations.

In 2003, ExxonMobil maintained an aggressive deepwater exploration program in Angola with discoveries at Bavuca, Clochas, Kakocha, and Tchihumba in Block 15; Acacia and Hortensia in Block 17; Marte and Saturno in Block 31 (ExxonMobil interest, 25 percent); and Gindungo in Block 32 (ExxonMobil interest, 15 percent). These nine discoveries represent a success rate of about 80 percent and resource additions of nearly 390 million net oil-equivalent barrels.

(CHART)

The offshore Angola Block 15 Kizomba A project will develop the Hungo and Chocalho fields in water depths of 3,300-4,200 feet. The development includes a new 2.2 million barrel Floating Production, Storage, and Offloading (FPSO) vessel that receives production from a 36-slot Tension Leg Platform (TLP). The TLP was successfully installed in November 2003, and fabrication of the FPSO is complete. Estimated recovery from the project is 1 billion barrels of oil (gross), with first oil projected in late 2004 following installation of the FPSO.

Utilizing a design similar to Kizomba A in order to achieve reduced costs and cycle time, the Kizomba B project is designed to develop 1 billion barrels of oil (gross) from two additional offshore Angola Block 15 fields (Kissanje and Dikanza). Start-up of Kizomba B is expected in 2006.

Kizomba C project will be the third offshore production hub in Angola Block 15. This project is planned to develop about 600 million barrels of oil (gross) from the Mondo, Saxi, and Batuque discoveries. Development planning is underway and first oil is expected in 2007.

The Dalia project will utilize a FPSO to recover 940 million barrels of oil (gross) from the offshore Angola Block 17 structure. Subsea templates at a water depth of 4,400 feet will handle production and injection for 37 oil producers, 33 water injectors, and three gas injectors. Detailed engineering is ongoing with FPSO construction commencing in early 2004. Start-up is anticipated in 2006.

Exxon Mobil Corporation 41 Upstream

Africa (continued)

Equatorial Guinea

ExxonMobil is the largest producer in Equatorial Guinea, and operates two blocks (ExxonMobil interest, 71 percent), which cover about 1 million gross acres. In 2003, total field production increased to over 200 thousand barrels per day (gross).

(MAP)

Construction activities were completed and first oil was achieved in July 2003, ahead of schedule, from the ExxonMobil-operated Southern Expansion Area of the Zafiro field. The Zafiro field is located on Block B, approximately 40 miles northwest of Malabo in water depths of 1,400-2,800 feet. Eleven of the 14 planned subsea wells are currently producing over 100 thousand barrels of oil per day (gross) to an FPSO that was deployed as an EPS. Estimated ultimate recovery from the project is in excess of 150 million barrels of oil-equivalent (gross).

(PHOTO)

(SYMBOLS)

The Serpentina Floating Production, Storage, and Offloading vessel in the Zafiro Field in Equatorial Guinea is one of the Early Production Systems deployed by ExxonMobil offshore west Africa.

Nigeria

ExxonMobil participates in a joint venture (ExxonMobil interest, 40 percent for crude and condensate; 51 percent for natural gas liquids) with the Nigerian National Petroleum Corporation, for which it operates five leases covering over 800 thousand acres in shallow water offshore southeastern Nigeria.

(MAP)

In 2003, ExxonMobil operations offshore Nigeria produced an average of 570 thousand barrels of oil per day (gross). This is about 10 percent above 2002 volumes, mostly due to the Yoho project. The ExxonMobil-operated Yoho project began producing in late 2002, two years ahead of full field start-up.

Other activities are in progress to increase future production capacity in the joint-venture areas. This production growth will be a result of satellite field developments, enhanced recovery projects, and a series of platform upgrades, which will enhance facility integrity and production capacity, and optimally develop additional resources on the joint-venture acreage. Two major projects, the East Area Additional Oil Recovery project and the East Area Natural Gas Liquids project, are underway.

(MAP)

Upstream 42 Exxon Mobil Corporation

(CHART)

Yoho Yoho full field development is underway offshore Nigeria. The $1.2 billion project, with ExxonMobil estimated recoverable reserves of 350 million barrels of oil, will develop discoveries in the Yoho and Awawa fields in water depths of 200-300 feet. With first full field production in early 2005, the development Wellhead will consist of production and quarters platforms, Platform a Floating Storage and Offloading (FSO) vessel, multiple wellhead platforms and an oil export system. The East Area Additional Oil Recovery project is being implemented to increase recovery and to minimize gas flaring from six joint-venture East Area producing fields. Facilities consist of gas gathering and re-injection pipelines and additional gas compression. The project is expected to recover 500 million oil-equivalent barrels (gross). Equipment procurement and detailed engineering are in progress, with start-up anticipated in 2006. The addition of gas processing platforms and an expansion of the Bonny River terminal facilities are planned to extract 300 million oil-equivalent barrels (gross) of natural gas liquids from East Area joint-venture fields. Contracting is underway and project start-up is anticipated in 2008. Bonga holds the distinction of being industry’s first deepwater (3,300 feet) development offshore Nigeria. Starting up in 2004, the project is designed to recover 200 thousand barrels of oil per day (gross) from 21 subsea wells tied back to a newly constructed Floating, Production, Storage, and Offloading (FPSO) vessel. Estimated ultimate recovery from the development is 560 million oil-equivalent barrels (gross). Construction and fabrication of the Erha FPSO is underway in South Korea. The FPSO will be moored in 3,400 feet of water offshore Nigeria to handle production and injection associated with 26 subsea wells. This development is expected to recover 500 million barrels of oil (gross), with first production in 2006.

Africa (continued)

The Amenam/Kpono project (ExxonMobil interest, 10 percent) was successfully started during the third quarter of 2003, yielding an additional 2 thousand barrels of oil per day (net).

In the deepwater areas off the Niger Delta, ExxonMobil is participating in two projects that are expected to develop over 1 billion barrels of oil (gross) on a combined basis. Bonga (ExxonMobil interest, 20 percent), the first deepwater development offshore Nigeria is anticipated to commence production in 2004 and the ExxonMobil-operated Erha project (ExxonMobil interest, 56 percent) is projected to start up in 2006.

Deepwater drilling continues with successful exploratory wells at Usan-3 and Usan-4 on Block 222 (ExxonMobil interest, 30 percent). We are working with co-venturers to progress Usan development in the near future.

ExxonMobil continues to progress discussions with the government and the Nigerian National Petroleum Corporation on commercial terms for its share of Nigeria’s extensive gas resources on both shallow and deepwater acreage. Technical studies have confirmed the availability of sufficient gas for LNG development.

Chad

ExxonMobil operates the 1 billion barrel Doba development project (ExxonMobil interest, 40 percent) as well as over 10 million gross acres in the Doba, Doseo, and Lake Chad basins. First oil production was achieved in June 2003 with full field start-up in early 2004. Exploration efforts continued in Chad with the successful completion of the Moundouli-2 wildcat and the Mangara-2 appraisal wells.

(MAP)

(PHOTO)

Chad-Doba


Expected Production Rate (gross)
Liquids	225 kBD
Total Project Investment	$3.7 billion
ExxonMobil Working Interest		40%
Scheduled Start-Up		2003/2004

This world-class development project encompassed construction and installation of a 650 mile pipeline and a Floating Storage and Offloading vessel located seven miles offshore of Kribi, Cameroon. Early oil production from the Miandoum field was achieved in June 2003 and full field production (including Kome field) is scheduled to occur in 2004. Achievements in the construction and operational phases of the project include completion of pipeline construction and pipeline fill operations one year ahead of schedule and completion of field facilities one year ahead of schedule. Production from the Bolobo and satellite fields (Nya and Moundouli) is planned to extend the pipeline production plateau. First production from the Bolobo field is expected to come on-line in 2005. As much as 1 billion barrels of oil (gross) is expected to be recovered from Miandoum, Kome, and the satellite fields.

Other African Interests

Cameroon — ExxonMobil holds interests in three blocks offshore Cameroon: Moudi, Ebome, and Ebodje. Net production in 2003 was 4 thousand barrels of oil per day.

Niger — ExxonMobil participates in the 7 million acre Agadem permit (ExxonMobil interest, 50 percent) in eastern Niger. Nearly 350 million recoverable oil-equivalent barrels (gross) have been discovered to date on this acreage.

Republic of Congo — ExxonMobil holds an interest in the Mer Tres Profonde Sud deepwater block (ExxonMobil interest, 30 percent), which covers over 1 million gross acres. Commercialization studies are ongoing on a prior year discovery at the Andromede prospect.

Upstream 44 Exxon Mobil Corporation

THE MIDDLE EAST

ExxonMobil has a substantial production base and significant growth potential in the resource-rich Middle East region.

(MAP)

Qatar

ExxonMobil is making significant progress working with Qatar Petroleum and other joint-venture partners to further develop the giant North Field, the largest non-associated gas field in the world. Gross resources to be developed through existing and planned LNG trains and pipeline projects exceed 22 billion barrels of oil-equivalent. Gas resources from the North Field are well positioned and competitive for supplying Liquefied Natural Gas (LNG) to all markets in the Asia-Pacific region, Europe, and the United States.

(MAP)

In 2003, three existing LNG trains at the Qatargas joint venture (ExxonMobil interest, 10 percent) produced 8.2 million tons (377 billion cubic feet), sold mainly to customers in Japan and Spain. Further optimization of the three existing LNG trains at Qatargas is underway. Work is progressing on the Qatargas II project (ExxonMobil interest, 15-30 percent) that is currently in the front-end engineering and development phase. The project will be the largest LNG import into the European market and includes two LNG trains each with a capacity of 7.8 million tons per year. Shipping will involve a fleet of LNG carriers that are larger than the largest LNG ships now in service. In addition, land use permits have been received for a 15.6 million ton per year LNG receiving terminal at ExxonMobil’s former refinery site in Milford Haven, Wales.

RasGas LNG facilities (ExxonMobil interest, 25 percent) produced 6.5 million tons (299 billion cubic feet), sold mainly to Korea Gas, with the bulk of the remainder going into markets in the U.S. and Spain. Construction of RasGas Trains 3 and 4 and the associated marketing arrangements are expected to develop 2.9 billion oil-equivalent barrels (gross). The Train 4 LNG project also includes natural gas liquids extraction facilities designed to provide 15 thousand barrels per day of liquids. In addition, plans are underway for a fifth train of 4.7 million tons per year capacity with sales agreements under development.

On October 16, 2003, ExxonMobil signed a Heads of Agreement with Qatar Petroleum to produce and deliver 15.6 million tons per year of LNG to the U.S. This project will be the largest LNG import project for supply of gas to the U.S. and will make a significant contribution to meeting its future gas demand. Two LNG trains of 7.8 million tons per year each and ships are planned to be developed as part of RasGas Trains 6 and 7. Deliveries of LNG are targeted for 2009. The trains and ships for both the Qatargas II project and for the RasGas Trains 6 and 7 project will use the same design.

In November, 2003, Qatar Petroleum and ExxonMobil acquired an interest in the offshore Adriatic Liquefied Natural Gas Terminal project (ExxonMobil interest, 45 percent) in Italy. This state-of-the-art receiving and regasification terminal is anticipated to start up in 2007. Under the amended contracts signed with Edison Gas S.p.A., RasGas will supply up to 4.7 million tons of LNG per year to Edison Gas and other customers in Italy through this terminal.

Qatar Existing and Planned LNG Trains


Joint			Capacity		Working				Scheduled
Venture	Train		MTA		Interest			Market	Completion
Qatargas		1		3.0		10	%	Japan/Spain	Complete
Qatargas		2		3.2		10	%	Japan/Europe	Complete
Qatargas		3		2.7		10	%	Japan/Europe	Complete
Qatargas II		4		7.8		30	%	U.K./Europe		2008
Qatargas II		5		7.8		15-30	%	U.K./Europe		2010
RasGas		1		3.3		25	%	Korea	Complete
RasGas		2		3.3		25	%	Korea	Complete
RasGas		3		4.7		29	%	India		2004
RasGas		4		4.7		30	%	Europe		2005
RasGas		5		4.7		30	%	Europe/Asia/U.S.		2007
RasGas		6		7.8		30	%	United States		2009
RasGas		7		7.8		30	%	United States		2011

Total				60.8

Exxon Mobil Corporation 45 Upstream

The Middle East (continued)

The Al Khaleej Gas (formerly Enhanced Gas Utilization) Development and Production Sharing Agreement (ExxonMobil interest, 100 percent) calls for further development of gas from the Qatar North Field for domestic and regional pipeline sales as well as associated natural gas liquids. Gas sales and purchase agreements for the first phase of production were concluded in early 2003 with the construction contract awarded in March. Startup is targeted for 2005. Discussions are progressing with other domestic and regional customers for additional sales from future phases of Al Khaleej Gas.

Taking advantage of synergies with existing and future LNG expansion projects at Ras Laffan, the Qatar Helium project will extract raw helium from the North Field gas and produce approximately 630 million cubic feet of refined helium per year. The Engineering, Procurement and Construction contract together with the Sale and Purchase Agreements for this project were signed in May 2003 and start-up is targeted for 2005.

Following the completion of a commercial and technical feasibility study, ExxonMobil is also discussing construction of a potential world-scale gas-to-liquids project with Qatar Petroleum.

(CHART PHOTO)

A joint project between Qatar Petroleum and ExxonMobil, the Qatargas II project is planned to further develop Qatar’s North Field through the addition of the world’s largest LNG liquefaction trains. Each train is targeted to produce 7.8 million tons per year (MTA) of LNG. Each project will encompass production, liquefaction, shipping, and regasifica-tion facilities. The United Kingdom and northern Europe are likely market destinations for project production. Start-up of the first train is expected in 2008. RasGas LNG Trains 3 and 4 will develop 2.9 billion oil-equivalent barrels (gross) through an expansion of North Field production. The projects include installation of two world-class LNG trains with combined capacity of over 9 MTAof LNG. Construction is underway on both trains with first deliveries scheduled for 2004 and 2005. Train 3 will supply LNG to India (Dahej Terminal) via an agreement between RasGas and Petronet, and Train 4 will supply LNG to Italy through the North Adriatic Terminal. A Heads of Agreement (HOA) was signed in October 2003 to supply LNG from Qatar to the U.S. for an expected period of 25 years. The HOAcovers the development of two additional large LNG trains with combined capacity of 15.6 million tons per year. Delivery of LNG to the U.S. is projected to begin in 2009. Several possible receiving terminal locations are under evaluation. The multi-phase Al Khaleej Gas project is intended to develop natural gas from Qatar’s giant North Field for domestic and export customers. Construction is in progress on Phase 1, which is targeted to supply 740 million cubic feet of gas per day to domestic industrial customers. We expect that future phases of the project will fulfill additional long-term domestic or export gas demand.

Upstream 46 Exxon Mobil Corporation

United Arab Emirates

ExxonMobil had net production of 110 thousand barrels of oil per day in Abu Dhabi during 2003, which was associated with the highest annual gross production rate since first oil exports from the onshore concession began 40 years ago. The company has a 9.5 percent interest in the concession operated by the Abu Dhabi Company for Onshore Oil Operations (ADCO). During 2003, ADCO awarded major engineering, procurement, and construction contracts for field development projects to increase sustainable production capacity by more than 15 percent to 1.4 million barrels per day (gross).

ExxonMobil is pursuing other investment opportunities in Abu Dhabi, focusing on areas where ExxonMobil’s industry-leading technology and capabilities can contribute to increased recovery of oil and gas, and enhanced training and development for UAE nationals.

Yemen

ExxonMobil holds interests of 37 and 15 percent, respectively, in Yemen’s Marib and Jannah Production Sharing Agreements. Total net oil production was 22 thousand barrels per day in 2003.

Kuwait

ExxonMobil has formed and leads a consortium (ExxonMobil interest, 37.5 percent) to compete for Kuwait’s tendering of an Operating Services Agreement covering four fields in the northern part of the country. The consortium has submitted development plans for consideration by Kuwait Oil Company.

RUSSIA

Sakhalin Island

ExxonMobil operates and holds a 30 percent interest in the Sakhalin I blocks offshore mainland Russia. Drilling and construction activities are underway with the first extended-reach well completed in 2003. Record extended-reach wells of over 5 miles offshore helped improve profitability by minimizing the need for offshore installations. Gas marketing activities included discussions with potential purchasers in the region including Japan, China, and Russia.

Exploration activities on the Sakhalin III blocks are pending award of Exploration and Production Licenses by the Russian government.

(MAP)

Sakhalin I


Expected Production Rate (gross)
Liquids	250 kBD
Natural Gas	1,000 MCFD
Total Project Investment	$12+ billion
ExxonMobil Working Interest		30%
Scheduled Start-Up		2005

More than 5 billion oil-equivalent barrels (gross) are expected to be produced from the multi-phase Sakhalin I development in the arctic region offshore eastern Russia. The initial phase of the project is designed to produce 250 thousand barrels of oil per day from the Chayvo field utilizing onshore and offshore extended-reach drilling technologies. Oil production will be processed in an onshore facility and exported via pipeline to a new terminal facility on the Russian mainland. Phase 1 construction and drilling activities are underway with first oil expected in 2005. Future phases are planned to develop remaining Chayvo oil and gas reserves, as well as Odoptu and Arkutun-Dagi reserves.

Exxon Mobil Corporation 47 Upstream

CASPIAN REGION

In the Caspian region, ExxonMobil holds the unique position of participating in the development of three of the largest fields in the world: Kashagan and Tengiz in Kazakhstan, and Azeri-Chirag-Gunashli in Azerbaijan.

(MAP)

Kazakhstan

Development planning activities are underway to initiate production from the giant Kashagan field, located in the offshore Caspian Sea and part of the North Caspian Production Sharing Agreement (NCPSA). In addition to the Kashagan field, the NCPSA includes additional exploration acreage where ExxonMobil participated in the successful drilling and discovery of hydrocarbons at the Aktote and Kashagan Southwest prospects in 2003. Work is underway to determine commerciality. ExxonMobil also participated in the drilling of a third wildcat prospect that was suspended for the winter season with plans to resume drilling operations in 2004.

During 2003, ExxonMobil exercised its preferential right to purchase its share of BG equity in the NCPSA. Upon close of the equity purchase, anticipated in 2004, ExxonMobil will increase its interest in the NCPSA from 16.7 percent to 20.4 percent.

ExxonMobil participates in the Tengizchevroil (TCO) joint venture (ExxonMobil interest, 25 percent), which includes a production license area of 380 thousand gross acres encompassing the Tengiz field, an associated processing plant complex, and the adjacent Korolev field. TCO also holds a prospective exploration license that covers over 600 thousand gross acres surrounding the production license.

(PHOTO)

Tengiz Expansions


Expected Production Rate (gross)
Liquids	440 kBD
Natural Gas	100 MCFD
Total Project Investment	$15 billion
ExxonMobil Working Interest		25%
Scheduled Start-Up		2006

Recently completed projects have increased Tengiz production capacity to nearly 300 thousand barrels per day (gross) and increased oil resources to over 3 billion barrels (gross). Two more major expansions are planned to add oil capacity of 440 thousand barrels per day (gross) and incremental resources of 3.3 billion barrels. The first expansion project is designed to integrate a 7 million metric ton per year (MTA) treating facility with a 3 MTA sour gas injection project for incremental production of 220 thousand barrels of oil per day (gross). Construction is underway with initial oil production targeted for 2006.

Kashagan


Expected Production Rate (gross)
Liquids	1,200 kBD
Total Project Investment	$40+ billion
ExxonMobil Working Interest		17%
Scheduled Start-Up		2008+

Development planning activities are underway to initiate production from the Kashagan field located in the northern Caspian Sea offshore Kazakhstan. The first phase of development is expected to recover 5.2 billion barrels of oil (gross) at a rate of 450 thousand barrels of oil per day. Phase 1 will include offshore facilities for processing, drilling, and sour gas injection, and onshore treating facilities. Future development of this world-class resource is anticipated to increase recovery to 13 billion barrels of oil (gross) at a producing rate of 1.2 million barrels of oil per day.

Upstream 48 Exxon Mobil Corporation

Tengiz, located on the eastern shore of the Caspian Sea, is one of the world’s largest oil fields, with recoverable resources estimated to be in excess of 7 billion barrels of oil. Gross production at Tengiz increased to about 300 thousand barrels per day in 2003.

ExxonMobil is an equity owner of the Caspian Pipeline Consortium (CPC) pipeline (ExxonMobil interest, 7.5 percent). The pipeline transports Tengiz oil to the Russian port of Novorossiysk on the Black Sea. The CPC pipeline reduces crude oil transportation costs and will facilitate future expansions of Tengiz production.

Azerbaijan

Production from the Azeri-Chirag-Gunashli (ACG) development (ExxonMobil interest, 8 percent) in the south Caspian Sea totaled 130 thousand barrels of oil per day (gross) in 2003. With estimated recoverable resources of over 6 billion barrels of oil and 6 trillion cubic feet of natural gas (gross), multiple phases of expansion are planned.

ExxonMobil participates in three other Production Sharing Agreements that cover 570 thousand gross acres in the Azeri sector of the Caspian Sea: Nakhchivan (ExxonMobil-operated, 50 percent interest); Zafar Mashal (ExxonMobil-operated, 30 percent interest); and Araz-Alov-Sharg (ExxonMobil interest, 15 percent). The first exploration well on the Zafar Mashal prospect commenced drilling in the fourth quarter of 2003; drilling operations will continue in 2004.

(MAP)

(CHART)

The three-phase ACG expansion project is underway in the south Caspian Sea offshore Azerbaijan. Phase 1 of the project is designed to develop the Central Azeri field, installing capacity for 400 thousand barrels of oil per day (gross) along with supporting gas compression and water injection. The project scope for Phase 1 includes construction and installation of a 48-slot drilling, living quarters, and production platform in 420 feet of water; a platform for gas compression and water injection facilities; and 110 miles of subsea oil and gas pipelines. In addition, an onshore oil terminal will be expanded. Estimated ultimate recovery from Phase 1 is over 1 billion barrels of oil (gross) and first oil is anticipated in 2005. Phase 2 of the ACG project is intended to develop the east and west portions of the Azeri field using an integrated Phase 1 and 2 depletion plan. Plans call for the addition of two platforms to accommodate drilling and living quarters, expansion of the Phase 1 injection platform, and an additional expansion of the onshore oil terminal. Phase 2 is expected to develop 1.7 billion barrels of oil (gross) with start-up in 2006. The final phase of the project will target development of the deepwater Gunashli field with estimated ultimate recovery of 1 billion barrels of oil. Start-up is expected in 2008.

Exxon Mobil Corporation 49 Upstream

ASIA-PACIFIC

ExxonMobil has an established large-scale and profitable production base throughout the Asia-Pacific region. Net daily production of 237 thousand barrels of liquids and 1.8 billion cubic feet of gas represented 13 percent of ExxonMobil’s worldwide production in 2003.

(MAP)

Malaysia

ExxonMobil is the largest oil producer in Malaysia and the largest supplier of natural gas to Peninsular Malaysia. Net production in 2003 was 105 thousand barrels of liquids per day and 563 million cubic feet of gas per day. The company participates in six Production Sharing Contracts offshore Peninsular Malaysia, operates 39 platforms in 17 fields, and has plans to install three new platforms over the next few years. In total, ExxonMobil holds an interest in 500 thousand net acres offshore.

First gas was produced from the Bintang field (ExxonMobil interest, 50 percent) in February 2003, with estimated peak production of 305 million cubic feet of gas per day (gross). Two new platforms at the Angsi field, Angsi C and E (ExxonMobil interest, 50 percent), started up late in 2003.

Additional capacity will be provided by the Guntong Hub development (ExxonMobil interest, 50 percent) consisting of compression and other infrastructure with estimated peak production of 55 thousand barrels of oil and 716 million cubic feet of gas per day (gross). The Guntong E compression project, the first development of the Guntong Hub, is scheduled to start up in 2006.

(MAP)

Indonesia

ExxonMobil operates Indonesia’s Arun natural gas field (ExxonMobil interest, 100 percent), which supplies gas to the P.T. Arun LNG plant. In 2003, production from the Arun and satellite fields in Pase/South Lhok Sukon and the North Sumatra Offshore field totaled 745 million cubic feet of gas per day (net).

ExxonMobil is continuing negotiations with Pertamina on behalf of the government of Indonesia to extend the term of the Cepu Contract. Once agreement is reached, plans are to begin development of the Banyu Urip oil field. In addition, analysis of the large 3D survey over the block will guide future exploratory and development programs.

(CHART PHOTO)

Engineering and design are underway in the Banyu Urip field located onshore in east Java. The development plans include construction of an initial oil production facility followed by a central processing facility. A62 mile pipeline will transport the processed oil to a Floating Storage and Offloading vessel moored off the nearby Tuban coast. Estimated ultimate recovery from the field is over 250 million barrels of oil (gross).

Upstream 50 Exxon Mobil Corporation

Discussion with prospective buyers on potential gas supply from the Natuna gas field (ExxonMobil interest, 76 percent) to neighboring countries is continuing in cooperation with Pertamina as a partner. ExxonMobil also continues to actively develop potential domestic markets for discovered resources at the Madura BD gas field (ExxonMobil interest, 69 percent).

Australia

Daily net production in Australia was 111 thousand barrels of liquids and 450 million cubic feet of natural gas. The company operates 23 offshore producing facilities in the Bass Strait and the Northwest Shelf along with one crude stabilization plant, three gas processing plants, and one fractionation plant. The Bass Strait contains significant gas resources and supplies most of Victoria’s natural gas requirements. Gas sales from the ExxonMobil-operated Gippsland Basin fields to Tasmania commenced in 2002 and grew in 2003.

(MAP)

In the Gippsland Basin, the initial processing of the 3,900 square kilometer Northern Fields 3D seismic survey was completed. Interpretation of the seismic data has identified new exploration opportunities, as well as potential for infill development wells in currently producing fields. In addition, the 1,100 square kilometer Tuskfish 3D seismic survey was completed in the Blackback area of the Gippsland Basin.

Efforts to delineate and commercialize large gas resources on Australia’s Northwest Shelf continued in 2003. The Western Australian government gave conditional approval to the Gorgon project (ExxonMobil interest, 14 percent) for the development of an LNG plant. An HOA was signed with the China National Offshore Oil Company for a 25 year supply of LNG from the plant. In addition, ExxonMobil drilled the Jansz-3 appraisal well on Australia’s Northwest Shelf to further delineate the large Jansz-Io gas discovery (ExxonMobil interest, 25 and 50 percent). The well confirmed the significant gas resources in place and the presence of a high-quality reservoir, demonstrated by a production test that flowed at a rate of 72 million cubic feet of gas per day. LNG development options are currently being evaluated.

(MAP)

Papua New Guinea

Daily net production in Papua New Guinea was 9 thousand barrels of oil per day during 2003.

In total, ExxonMobil holds interests in approximately 2.1 million gross acres in Papua New Guinea containing several oil and gas discoveries. ExxonMobil became operator of the new Highlands Gas project (ExxonMobil interest, 26 percent) which provides for the commercial development of the Kutubu, Gobe, Moran, and Hides fields. Marketing efforts continued to obtain additional gas sales agreements with potential customers. In 2003, ExxonMobil participated in the NW Moran-1 wildcat (ExxonMobil interest, 18.7 percent), which encountered oil in the Moran field reservoirs and extended the field limit two kilometers to the northwest.

Exxon Mobil Corporation 51 Upstream

SOUTH AMERICA

ExxonMobil has producing interests in Venezuela and Argentina. In addition, the company holds exploration rights onshore in Bolivia and Venezuela, and has an exploration portfolio along the deepwater margins of South America in Brazil, Guyana, and Trinidad and Tobago.

(MAP)

Venezuela

ExxonMobil operates the Cerro Negro field (ExxonMobil interest, 41.7 percent) in Venezuela. The 120 thousand barrels of extra-heavy crude produced daily (gross) is refined through an upgrader into a higher quality product.

ExxonMobil also has a 25 percent interest in the Quiamare La Ceiba block in eastern Venezuela and a 50 percent interest in the 122 thousand acre La Ceiba block on the southeastern shore of Lake Maracaibo. Work began on the La Ceiba commercialization evaluation plan that includes extended production testing expected to begin in late 2004.

(PHOTO)

Argentina

ExxonMobil holds a 51 percent interest in the Chihuidos block, which contains the Sierra Chata gas field, located in the Neuquen Basin in central Argentina. The company also holds a 23 percent interest in the Aguarague concession in northwest Argentina. Net daily gas production of 96 million cubic feet is sold into markets in Argentina and central and northern Chile.

Brazil

ExxonMobil holds interests in two blocks offshore Brazil located in the prolific Campos Basin deepwater play. In Campos Basin Block BC-10 (ExxonMobil interest, 30 percent), two appraisal wells confirmed 2002 discoveries, and provided the confidence to progress to the initial stages of development planning. Additional potential on Block BC-10 will be tested in 2004.

Trinidad and Tobago

ExxonMobil signed an agreement with the Republic of Trinidad and Tobago on the funding of a three year work program in the Soldado area, offshore western Trinidad. ExxonMobil will fund geotechnical studies, seismic, wells, and training for employees of PetroTrin, the Trinidad and Tobago national oil company. The agreement includes a working interest option for resultant discoveries on the acreage.

Upstream 52 Exxon Mobil Corporation

POWER OVERVIEW

• 28 percent increase in cogeneration capacity currently under construction (over 800 megawatts)

• Refurbishment of the Castle Peak coal-fired plant ongoing and construction of Black Point units 7 and 8 underway

• Continued improvement in operating performance

Hong Kong

ExxonMobil has a 60 percent interest in three power stations in Hong Kong totaling almost 6,300 megawatts of electricity generation capacity and a 51 percent interest in an additional 600 megawatts of capacity in southern China. Completion of units 7 and 8 at Black Point Power Station will add 625 megawatts of gas-fired generation capacity in 2005-2006. These stations supply electricity to China Light & Power, which serves Hong Kong. Surplus power is sold to neighboring Guangdong. While power demand in Hong Kong has been growing slowly, demand in Guangdong is growing rapidly, which accounts for most of the increase in 2003 sales.

The Black Point gas-fired power station. Construction of two additional gas-fired turbines (units 7 and 8) is currently underway.

(PHOTO)

Black Point Power Station


Expected Production Rate (gross)
Current Capacity	1,875 MW
Units 7 & 8	625 MW
Total Capacity	2,500 MW
Total Project Investment	$688 million
ExxonMobil Working Interest		60%
Scheduled Start-Up		2005-2006

Delivery of equipment has begun for the addition of units 7 and 8 at the Black Point Power Station in Hong Kong’s New Territories. The combined cycle gas turbine units have more than 300 megawatts capacity each and include gas and steam turbines, electrical generators, and heat recovery/steam generators. Completion of the units is scheduled for 2005-2006.


Power — Statistical Recap⁽¹⁾	2003		2002		2001		2000		1999
Earnings (millions of dollars)		311		299		306		319		327
Electricity sales⁽²⁾ (gigawatt hours)		31,043		29,888		28,529		27,485		25,778
Average capital employed (millions of dollars)		1,956		1,978		2,040		2,119		2,180
Capital expenditures (millions of dollars)		165		73		48		28		26

(1)		ExxonMobil share of power affiliate results, except electricity sales, which are stated at 100 percent.

(2)		China Light & Power sales to consumers in China.

COAL

ExxonMobil continues to operate the Monterey coal mine in the U.S. (Illinois) with production of 2.7 million metric tons in 2003. The coal is supplied to local power generation and cement processing industries.

Exxon Mobil Corporation 53 Upstream

NET LIQUIDS PRODUCTION⁽¹⁾
Including Tar Sands and Non-Consolidated Operations


(thousands of barrels per day)	2003		2002		2001		2000		1999
United States
Alaska		188		197		210		232		215
Lower 48		422		484		502		501		514

Total United States		610		681		712		733		729

Canada		363		349		331		304		315

Total North America		973		1,030		1,043		1,037		1,044

Europe
United Kingdom		278		305		320		355		392
Norway		280		263		307		320		227
Other		21		24		26		29		31

Total Europe		579		592		653		704		650

Asia-Pacific
Australia		111		122		131		140		162
Malaysia		105		115		98		90		109
Other		21		23		18		23		36

Total Asia-Pacific		237		260		247		253		307

Africa
Nigeria		260		213		249		253		265
Equatorial Guinea		124		98		89		67		58
Other		58		38		4		3		3

Total Africa		442		349		342		323		326

Middle East		149		127		135		137		114

Other Areas		136		138		122		99		76

Total worldwide		2,516		2,496		2,542		2,553		2,517

Gas Plant Liquids Included Above
United States		90		111		120		120		127
Non-U.S.		166		178		185		180		183

Total worldwide		256		289		305		300		310

Tar Sands and Non-Consolidated Volumes Included Above
United States		106		106		109		115		120
Canada		52		57		52		42		55
Europe		9		9		10		13		13
Middle East		127		102		108		107		88
Other		71		74		70		57		53

Total worldwide		365		348		349		334		329

(1)

Net liquids production quantities are the volumes of crude oil and natural gas liquids withdrawn from ExxonMobil’s oil and gas reserves, excluding royalties and quantities due to others when produced, and are based on the volumes delivered from the lease or at the point measured for royalty and/or severance tax purposes. Volumes include 100 percent of the production of majority-owned affiliates, including liquids production from tar sands operations in Canada, and ExxonMobil’s ownership of the production by companies owned 50 percent or less.

(BAR CHART)

Upstream 54 Exxon Mobil Corporation

NET NATURAL GAS PRODUCTION AVAILABLE FOR SALE⁽¹⁾
Including Non-Consolidated Operations


(millions of cubic feet per day)	2003		2002		2001		2000		1999
United States		2,246		2,375		2,598		2,856		2,871

Canada		943		1,024		1,006		844		683

Total North America		3,189		3,399		3,604		3,700		3,554

Europe
Netherlands		1,591		1,601		1,637		1,519		1,591
United Kingdom		1,234		1,417		1,547		1,506		1,386
Norway		667		503		445		451		420
Germany		1,006		942		966		987		1,041
Other		—		—		—		—		—

Total Europe		4,498		4,463		4,595		4,463		4,438

Asia-Pacific
Australia		450		453		449		346		325
Malaysia		563		690		645		649		609
Indonesia		745		825		401		701		1,020
Other		45		51		52		59		73

Total Asia-Pacific		1,803		2,019		1,547		1,755		2,027

Middle East		455		408		354		278		138

Other Areas		174		163		179		147		151

Total worldwide		10,119		10,452		10,279		10,343		10,308

Non-Consolidated Natural Gas Volumes Included Above
United States		2		2		13		15		12
Europe		1,531		1,539		1,556		1,433		1,496
Middle East		455		408		354		278		138
Other		73		77		65		38		31

Total worldwide		2,061		2,026		1,988		1,764		1,677

(1)

Net natural gas available for sale quantities are the volumes withdrawn from ExxonMobil’s natural gas reserves, excluding royalties and volumes due to others when produced, and excluding gas purchased from others, gas consumed in producing operations, field processing plant losses, volumes used for gas lift, gas injection and cycling operations, quantities flared, and volume shrinkage due to the removal of condensate or natural gas liquids fractions.

(BAR CHART)

NATURAL GAS SALES⁽¹⁾


(millions of cubic feet per day)	2003		2002		2001		2000		1999
United States		4,793		6,939		5,925		5,829		5,533
Canada		1,919		2,051		2,305		2,324		1,942
Europe		6,610		7,544		7,570		7,213		7,430
Asia-Pacific		1,708		1,907		1,472		1,683		1,903
Middle East		384		334		308		235		103
Other		181		188		205		160		152

Total worldwide		15,595		18,963		17,785		17,444		17,063

(1)

Natural gas sales include 100 percent of the sales of ExxonMobil and majority-owned affiliates and ExxonMobil’s ownership of sales by companies owned 50 percent or less. Numbers include sales of gas purchased from third parties.

Exxon Mobil Corporation 55 Upstream

NUMBER OF NET WELLS DRILLED ANNUALLY⁽¹⁾


	Productive										Dry										Total
(net wells drilled)	2003		2002		2001		2000		1999		2003		2002		2001		2000		1999		2003		2002		2001		2000		1999
Exploratory⁽²⁾		38		46		51		62		40		28		23		41		26		31		66		69		92		88		71
Development		1,060		1,287		1,313		934		867		34		29		24		13		31		1,094		1,316		1,337		947		898

Total		1,098		1,333		1,364		996		907		62		52		65		39		62		1,160		1,385		1,429		1,035		969

NET ACREAGE AT YEAR END⁽³⁾


	Undeveloped										Developed
(thousands of net acres)	2003		2002		2001		2000		1999		2003		2002		2001		2000		1999
United States		7,353		7,309		7,669		7,399		7,780		5,655		5,695		5,714		5,993		5,894
Canada⁽⁴⁾		5,204		8,851		9,708		9,775		11,488		2,457		2,382		2,426		2,402		2,470
Europe		2,611		2,687		4,624		6,244		8,268		4,746		4,874		4,819		4,816		5,190
Asia-Pacific		8,769		12,163		14,161		19,641		33,955		1,723		1,692		1,640		1,528		1,487
Africa		11,447		12,205		15,736		20,111		29,089		462		685		630		387		354
Latin America		15,141		17,459		19,205		25,122		30,761		388		387		388		363		356
Other		526		553		1,251		1,241		1,297		1,459		1,458		1,458		1,458		1,488

Total worldwide		51,051		61,227		72,354		89,533		122,638		16,890		17,173		17,075		16,947		17,239

NET CAPITALIZED COSTS AT YEAR END⁽³⁾


(millions of dollars)	2003		2002		2001		2000		1999
United States		16,711		15,739		15,408		14,887		14,767
Canada⁽⁴⁾		8,114		6,114		5,772		5,827		6,266
Europe		15,830		12,872		10,704		11,361		13,271
Asia-Pacific		6,888		5,702		5,207		5,274		5,793
Africa		8,606		5,755		4,355		3,711		3,701
Other		5,397		4,577		4,016		3,862		3,649

Total worldwide		61,546		50,759		45,462		44,922		47,447

COSTS INCURRED IN PROPERTY ACQUISITION, EXPLORATION, AND DEVELOPMENT ACTIVITIES⁽³⁾


(millions of dollars)	United States		Canada⁽⁴⁾		Europe		Asia-Pacific			Africa		Other		Worldwide
During 2003⁽⁵⁾
Property acquisition costs		17		7		4		—			17		—		45
Exploration costs		253		102		171		138			264		253		1,181
Development costs		1,780		1,079		1,968		929			3,117		983		9,856

Total		2,050		1,188		2,143		1,067			3,398		1,236		11,082

During 2002
Property acquisition costs		32		20		—		—			10		125		187
Exploration costs		281		109		160		95			301		217		1,163
Development costs		1,843		949		1,975		936			1,708		690		8,101

Total		2,156		1,078		2,135		1,031			2,019		1,032		9,451

During 2001
Property acquisition costs		95		17		1		(1	)		2		10		124
Exploration costs		356		141		165		148			281		469		1,560
Development costs		1,816		798		1,619		666			995		359		6,253

Total		2,267		956		1,785		813			1,278		838		7,937

During 2000
Property acquisition costs		73		16		4		97			2		49		241
Exploration costs		219		145		203		145			272		304		1,288
Development costs		1,390		610		1,343		502			402		372		4,619

Total		1,682		771		1,550		744			676		725		6,148

(1)		A regional breakout of this data is included on page 10 of ExxonMobil’s 2003 Form 10-K.

(2)		These include near-field and appraisal wells classified as exploratory for SEC reporting.

(3)		Includes non-consolidated interests and Syncrude tar sands operations and is not directly comparable to data on page A49 of ExxonMobil’s 2004 Proxy Statement, and page 4 of ExxonMobil’s 2003 Form 10-K, which due to financial reporting requirements, treat Syncrude as a mining operation.

(4)		Syncrude data included above: net acreage of 26 thousand developed acres and 149 thousand undeveloped acres at year-end 2003, net capitalized cost of about $1.7 billion at year-end 2003, and development costs of $296 million incurred during 2003.

(5)		Per FAS 143, development costs beginning in 2003 also include new asset retirement obligations established in the current year, as well as increases or decreases to the asset retirement obligation resulting from changes in cost estimates or abandonment date.

Upstream 56 Exxon Mobil Corporation

PROVED OIL AND GAS RESERVES


	2003		2002		2001		2000		1999
Liquids, Including Tar Sands and Non-Consolidated Reserves (millions of barrels at year end)
Net proved developed and undeveloped reserves
United States		3,218		3,352		3,494		3,480		3,285
Canada⁽¹⁾		1,975		2,085		2,098		1,940		1,932
Europe		1,204		1,359		1,503		1,591		1,797
Asia-Pacific		684		691		622		690		715
Africa		2,742		2,626		2,461		2,384		2,024
Other		3,033		2,510		2,134		2,086		2,084

Total worldwide		12,856		12,623		12,312		12,171		11,837

Proportional interest in tar sands and non-consolidated reserves included above
United States		426		444		466		494		536
Canada (tar sands)⁽¹⁾		781		800		821		610		577
Europe		20		26		27		33		36
Other		1,789		1,728		1,446		1,384		1,384
Net proved developed reserves included above
United States		2,711		2,835		2,957		3,042		2,745
Canada⁽¹⁾		1,301		1,255		1,184		1,240		995
Europe		821		817		900		999		1,110
Asia-Pacific		473		487		477		504		615
Africa		1,107		1,057		1,022		989		1,048
Other		1,310		1,320		1,263		1,174		1,133

Total worldwide		7,723		7,771		7,803		7,948		7,646

Natural Gas, Including Non-Consolidated Reserves (billions of cubic feet at year end)
Net proved developed and undeveloped reserves
United States		11,424		12,239		12,924		13,296		13,227
Canada		2,341		2,882		3,183		3,516		3,387
Europe		23,849		24,336		25,252		26,017		26,454
Asia-Pacific		7,285		7,958		8,301		8,546		9,358
Africa		583		436		379		375		171
Other		9,287		7,867		5,907		4,116		4,199

Total worldwide		54,769		55,718		55,946		55,866		56,796

Proportional interest in non-consolidated reserves included above
United States		152		177		192		251		226
Europe		13,703		13,828		14,321		14,847		15,226
Other		8,364		7,132		5,179		3,449		3,591
Net proved developed reserves included above
United States		9,637		10,128		10,511		11,118		10,926
Canada		1,962		2,294		2,517		2,850		2,475
Europe		14,966		12,928		13,641		14,325		14,221
Asia-Pacific		5,764		5,887		6,005		6,300		6,471
Africa		155		112		122		125		2
Other		3,750		3,394		3,226		3,299		2,506

Total worldwide		36,234		34,743		36,022		38,017		36,601

(1)

Includes proven reserves from Syncrude tar sands operations in Canada and, therefore, is not directly comparable to data shown on pages A50 and A51 of ExxonMobil’s 2004 Proxy Statement, which due to financial reporting requirements, treat Syncrude as a mining operation. A description of the Syncrude operation is provided on page 34 of this report.

(PIE CHART)

Exxon Mobil Corporation 57 Upstream

PROVED OIL AND GAS RESERVES REPLACEMENT

The data shown below and on the facing page include reserves, production, and costs from Syncrude tar sands operations in Canada. This is a more complete summary of ExxonMobil’s exploration and production operations than the data on pages A50 and A51 of ExxonMobil’s 2004 Proxy Statement, which due to financial reporting requirements, treat Syncrude as a mining operation.


																5-Year
																Average
	2003			2002			2001			2000			1999			1999-2003
Liquids (millions of barrels)
Revisions		375			355			264			628			393			403
Improved recovery		111			94			121			123			98			109
Extensions/discoveries		674			777			683			517			720			675
Purchases		1			—			—			—			—			—
Sales		(16	)		(13	)		(9	)		(6	)		(12	)		(11	)
Total additions		1,145			1,213			1,059			1,262			1,199			1,176
Production		912			902			918			928			912			914
Replacement ratio (percent)		126			134			115			136			131			129
Replacement ratio, excluding sales (percent)		127			136			116			137			133			130
Natural Gas (billions of cubic feet)
Revisions		1,462			1,447			836			2,207			1,807			1,552
Improved recovery		25			4			39			166			282			103
Extensions/discoveries		1,719			2,597			3,431			873			873			1,898
Purchases		10			2			1			10			—			5
Sales		(120	)		(43	)		(69	)		(8	)		(19	)		(52	)
Total additions		3,096			4,007			4,238			3,248			2,943			3,506
Production		4,045			4,235			4,158			4,178			4,153			4,154
Replacement ratio (percent)		77			95			102			78			71			84
Replacement ratio, excluding sales (percent)		80			96			104			78			71			86
Oil-Equivalent (millions of barrels)
Revisions		619			597			403			996			694			662
Improved recovery		116			95			127			151			145			127
Extensions/discoveries		961			1,210			1,255			662			866			990
Purchases		2			—			—			2			—			1
Sales		(36	)		(21	)		(20	)		(8	)		(15	)		(20	)
Total additions		1,662			1,881			1,765			1,803			1,690			1,760
Production		1,587			1,608			1,611			1,624			1,604			1,607
Replacement ratio (percent)		105			117			110			111			105			110
Replacement ratio, excluding sales (percent)		107			118			111			112			106			111

2003 Reserves Changes by Region


	Crude Oil and Natural Gas Liquids (millions of barrels)																			Natural Gas (billions of cubic feet)
	United									Asia-										United									Asia-
	States			Canada			Europe			Pacific			Africa		Other		Total			States			Canada			Europe			Pacific			Africa		Other		Total
Revisions		27			14			47			67			176		44		375			95			(199	)		861			23			157		525		1,462
Improved recovery		41			3			1			—			66		—		111			24			1			—			—			—		—		25
Extensions/discoveries		27			6			10			12			36		583		674			157			45			346			22			1		1,148		1,719
Purchases		1			—			—			—			—		—		1			10			—			—			—			—		—		10
Sales		(14	)		—			(2	)		—			—		—		(16	)		(90	)		—			(30	)		—			—		—		(120	)

Total additions		82			23			56			79			278		627		1,145			196			(153	)		1,177			45			158		1,673		3,096
Production		217			133			211			86			162		103		912			1,011			388			1,665			718			11		252		4,045

Net change		(135	)		(110	)		(155	)		(7	)		116		524		233			(815	)		(541	)		(488	)		(673	)		147		1,421		(949	)
Replacement ratio (percent)		38			17			27			92			172		609		126			19			—			71			6			1,436		664		77
Replacement ratio, excluding sales (percent)		44			17			27			92			172		609		127			28			—			72			6			1,436		664		80

Upstream 58 Exxon Mobil Corporation

PROVED OIL AND GAS RESERVES REPLACEMENT
Units are million barrels of oil or billion cubic feet of gas unless specified otherwise


											5-Year
											Average
	2003		2002		2001		2000		1999		1999-2003
Non-U.S.
E&P costs (millions of dollars)		9,032		7,295		5,670		4,466		6,274		6,547
Oil reserves additions		1,063		1,116		795		805		1,036		963
Oil production		695		663		668		666		653		669
Gas reserves additions		2,900		3,635		3,477		2,004		1,797		2,762
Gas production		3,034		3,177		3,026		3,003		3,011		3,050
Oil-equivalent reserves additions		1,547		1,722		1,374		1,139		1,336		1,423
Oil-equivalent reserves additions, excluding sales		1,554		1,722		1,375		1,145		1,336		1,426
Oil-equivalent production		1,201		1,193		1,172		1,166		1,155		1,178
Reserves replacement ratio (percent)		129		144		117		98		116		121
Reserves replacement ratio, excluding sales (percent)		129		144		117		98		116		121
Reserves replacement costs⁽¹⁾ (dollars per barrel)		5.81		4.24		4.12		3.90		4.70		4.59

United States
E&P costs (millions of dollars)		2,050		2,156		2,267		1,682		1,609		1,953
Oil reserves additions		82		97		264		457		163		213
Oil production		217		239		250		262		259		245
Gas reserves additions		196		372		761		1,244		1,146		744
Gas production		1,011		1,058		1,132		1,175		1,142		1,104
Oil-equivalent reserves additions		115		159		391		664		354		337
Oil-equivalent reserves additions, excluding sales		144		180		410		666		369		354
Oil-equivalent production		386		415		439		458		449		429
Reserves replacement ratio (percent)		30		38		89		145		79		78
Reserves replacement ratio, excluding sales (percent)		37		43		93		145		82		82
Reserves replacement costs⁽¹⁾ (dollars per barrel)		14.24		11.98		5.53		2.53		4.36		5.52

Worldwide
E&P costs (millions of dollars)		11,082		9,451		7,937		6,148		7,883		8,500
Oil reserves additions		1,145		1,213		1,059		1,262		1,199		1,176
Oil production		912		902		918		928		912		914
Gas reserves additions		3,096		4,007		4,238		3,248		2,943		3,506
Gas production		4,045		4,235		4,158		4,178		4,153		4,154
Oil-equivalent reserves additions		1,662		1,881		1,765		1,803		1,690		1,760
Oil-equivalent reserves additions, excluding sales		1,698		1,902		1,785		1,811		1,705		1,780
Oil-equivalent production		1,587		1,608		1,611		1,624		1,604		1,607
Reserves replacement ratio (percent)		105		117		110		111		105		110
Reserves replacement ratio, excluding sales (percent)		107		118		111		112		106		111
Reserves replacement costs⁽¹⁾ (dollars per barrel)		6.53		4.97		4.45		3.39		4.62		4.77

(1)

Calculation based on exploration and production costs divided by oil-equivalent reserves additions. All values exclude the impact of asset sales; i.e., reserves sold and proceeds received.

Exxon Mobil Corporation 59 Upstream

OIL AND GAS EXPLORATION AND PRODUCTION EARNINGS

The revenue, cost, and earnings data are shown both on a total dollar and unit basis, and are inclusive of non-consolidated and Syncrude tar sands operations. They are not directly comparable to the data on page A48 of ExxonMobil’s 2004 Proxy Statement, which due to financial reporting requirements, treat Syncrude as a mining operation. The data displayed here provide a more complete summary of ExxonMobil’s exploration and production operations.


	Total Revenues and Costs, Including Non-Consolidated Interests and Tar Sands																	Revenues and Costs per Unit of Sales or Production⁽¹⁾
	United							Asia-										United					Outside North
	States		Canada			Europe		Pacific			Africa		Other			Total		States		Canada			America		Worldwide
2003	(millions of dollars)																	(dollars per unit of sales)
Revenue
Crude oil and NGL		5,785		3,307			5,683		2,484			4,499		2,611			24,369		26.00		24.80			27.47		26.72
Natural gas		4,152		1,587			6,720		1,869			—		527			14,855		5.07		4.61			3.60		4.02

(dollars per barrel of net oil-equivalent production)
Total revenue		9,937		4,894			12,403		4,353			4,499		3,138			39,224		27.67		25.75			24.77		25.57
Less costs:
Production costs excluding taxes		1,780		1,372			1,951		558			564		311			6,536		4.96		7.22			3.44		4.26
Depreciation and depletion		1,574		821			1,997		727			459		224			5,802		4.37		4.32			3.46		3.78
Exploration expenses		257		92			166		146			217		155			1,033		0.72		0.48			0.69		0.67
Taxes other than income		554		42			1,594		447			528		751			3,916		1.54		0.22			3.37		2.55
Related income tax		2,017		808			3,420		1,046			1,496		795			9,582		5.62		4.25			6.86		6.25

Results of producing activities		3,755		1,759			3,275		1,429			1,235		902			12,355		10.46		9.26			6.95		8.06
Other earnings⁽²⁾		149		(246	)		1,977		2			14		(61	)		1,835		0.41		(1.30	)		1.96		1.19

Total earnings, excluding power and coal		3,904		1,513			5,252		1,431			1,249		841			14,190		10.87		7.96			8.91		9.25
Power and coal		1		—			—		311			—		—			312

Total earnings		3,905		1,513			5,252		1,742			1,249		841			14,502

2002	(millions of dollars)																	(dollars per unit of sales)
Revenue
Crude oil and NGL		5,203		2,715			4,979		2,352			3,064		2,012			20,325		20.95		21.56			23.15		22.33
Natural gas		2,320		876			5,304		1,664			—		385			10,549		2.68		2.34			2.86		2.77

(dollars per barrel of net oil-equivalent production)
Total revenue		7,523		3,591			10,283		4,016			3,064		2,397			30,874		19.14		18.94			20.49		19.96
Less costs:
Production costs excluding taxes		1,675		1,010			1,674		592			455		302			5,708		4.26		5.33			3.13		3.69
Depreciation and depletion		1,644		716			1,869		651			354		235			5,469		4.19		3.77			3.22		3.54
Exploration expenses		222		66			133		101			177		258			957		0.56		0.35			0.69		0.62
Taxes other than income		477		33			1,007		403			345		518			2,783		1.21		0.17			2.36		1.80
Related income tax		1,153		566			2,828		939			972		367			6,825		2.93		2.99			5.30		4.41

Results of producing activities		2,352		1,200			2,772		1,330			761		717			9,132		5.99		6.33			5.79		5.90
Other earnings⁽²⁾		165		(202	)		228		(32	)		76		(75	)		160		0.41		(1.07	)		0.20		0.10

Total earnings, excluding power and coal		2,517		998			3,000		1,298			837		642			9,292		6.40		5.26			5.99		6.00
Power and coal		7		—			—		307			—		(8	)		306

Total earnings		2,524		998			3,000		1,605			837		634			9,598

(1)		The per unit data is divided into two separate sections: (a) revenue per unit of sales from ExxonMobil’s own production; and (b) operating costs and earnings per unit of net oil-equivalent production. Units for crude oil and natural gas liquids (NGL) are barrels, while units for natural gas are thousands of cubic feet. The volumes of crude oil and natural gas liquids production and net natural gas production available for sale used in this calculation are shown on pages 54 and 55 of this document. The volumes of natural gas were converted to oil-equivalent barrels based on a conversion factor of 6 thousand cubic feet per barrel.

(2)		Includes earnings related to transportation operations, LNG operations, sale of third-party purchases, technical services agreements, other non-operating activities, and adjustments for minority interests.

(3)		Other revenue includes carbon dioxide, helium, and sulfur. Revenue from these products has been included in “other earnings” beginning 2002.

Upstream 60 Exxon Mobil Corporation

Oil and Gas Exploration and Production Earnings (continued)


	Total Revenues and Costs, Including Non-Consolidated Interests and Tar Sands																		Revenues and Costs per Unit of Sales or Production⁽¹⁾
	United								Asia-										United					Outside North
	States			Canada			Europe		Pacific			Africa		Other			Total		States		Canada			America		Worldwide
2001	(millions of dollars)																		(dollars per unit of sales)
Revenue
Crude oil and NGL		5,124			2,095			5,372		2,167			2,911		1,812			19,481		19.70		17.43			22.74		21.19
Natural gas		4,126			1,364			5,790		1,019			—		421			12,720		4.35		3.71			2.97		3.39
Other⁽³⁾		90			7			23		—			—		2			122

(dollars per barrel of net oil-equivalent production)
Total revenue		9,340			3,466			11,185		3,186			2,911		2,235			32,323		22.35		19.05			20.47		20.81
Less costs:
Production costs excluding taxes		1,650			884			1,613		549			414		341			5,451		3.95		4.86			3.06		3.51
Depreciation and depletion		1,522			602			1,781		557			318		235			5,015		3.64		3.31			3.03		3.22
Exploration expenses		216			109			128		103			217		418			1,191		0.52		0.60			0.91		0.77
Taxes other than income		567			56			1,178		410			375		449			3,035		1.36		0.31			2.53		1.96
Related income tax		1,957			603			3,079		622			1,023		427			7,711		4.68		3.31			5.40		4.96

Results of producing activities		3,428			1,212			3,406		945			564		365			9,920		8.20		6.66			5.54		6.39
Other earnings⁽²⁾		504			(151	)		224		(27	)		32		(73	)		509		1.21		(0.83	)		0.16		0.32

Total earnings, excluding power and coal		3,932			1,061			3,630		918			596		292			10,429		9.41		5.83			5.70		6.71
Power and coal		1			—			—		314			—		(8	)		307

Total earnings		3,933			1,061			3,630		1,232			596		284			10,736

2000	(millions of dollars)																		(dollars per unit of sales)
Revenue
Crude oil and NGL		6,438			2,542			6,985		2,636			3,232		2,074			23,907		23.99		22.75			27.06		25.66
Natural gas		4,026			1,105			4,687		1,661			—		336			11,815		3.85		3.58			2.75		3.12
Other⁽³⁾		59			8			30		—			—		—			97

(dollars per barrel of net oil-equivalent production)
Total revenue		10,523			3,655			11,702		4,297			3,232		2,410			35,819		23.78		22.46			22.54		22.88
Less costs:
Production costs excluding taxes		1,526			818			1,829		543			400		305			5,421		3.45		5.03			3.20		3.46
Depreciation and depletion		1,545			616			2,060		556			340		214			5,331		3.49		3.78			3.30		3.41
Exploration expenses		145			81			156		164			196		212			954		0.33		0.50			0.76		0.61
Taxes other than income		655			35			841		506			446		500			2,983		1.48		0.21			2.39		1.90
Related income tax		2,419			820			3,662		1,005			1,093		684			9,683		5.47		5.04			6.71		6.19

Results of producing activities		4,233			1,285			3,154		1,523			757		495			11,447		9.56		7.90			6.18		7.31
Other earnings⁽²⁾		312			(155	)		630		148			30		(43	)		922		0.71		(0.96	)		0.79		0.59

Total earnings, excluding power and coal		4,545			1,130			3,784		1,671			787		452			12,369		10.27		6.94			6.97		7.90
Power and coal		(3	)		—			—		323			—		(4	)		316

Total earnings		4,542			1,130			3,784		1,994			787		448			12,685

1999	(millions of dollars)																		(dollars per unit of sales)
Revenue
Crude oil and NGL		3,932			1,745			3,881		2,020			1,999		1,089			14,666		14.76		15.22			16.84		16.03
Natural gas		2,345			401			3,820		1,390			—		116			8,072		2.24		1.61			2.16		2.15
Other⁽³⁾		64			2			33		—			—		—			99

(dollars per barrel of net oil-equivalent production)
Total revenue		6,341			2,148			7,734		3,410			1,999		1,205			22,837		14.38		13.73			15.13		14.77
Less costs:
Production costs excluding taxes		1,660			676			1,710		566			394		250			5,256		3.77		4.32			3.08		3.40
Depreciation and depletion		1,451			520			2,107		678			318		250			5,324		3.28		3.33			3.53		3.45
Exploration expenses		232			93			307		144			236		263			1,275		0.53		0.59			1.00		0.82
Taxes other than income		445			35			576		288			309		243			1,896		1.00		0.22			1.50		1.22
Related income tax		893			311			1,206		521			534		264			3,729		2.03		1.99			2.66		2.41

Results of producing activities		1,660			513			1,828		1,213			208		(65	)		5,357		3.77		3.28			3.36		3.47
Other earnings⁽²⁾		182			(64	)		473		6			14		(82	)		529		0.41		(0.41	)		0.43		0.34

Total earnings, excluding power and coal		1,842			449			2,301		1,219			222		(147	)		5,886		4.18		2.87			3.79		3.81
Power and coal		31			—			—		330			—		(3	)		358

Total earnings		1,873			449			2,301		1,549			222		(150	)		6,244

Exxon Mobil Corporation 61 Upstream

Refining and Supply, Fuels Marketing, and Lubricants and Specialties

Downstream Strategies

ExxonMobil’s Downstream strategies position the company to be the industry leader, capable of outperforming the competition under a variety of market conditions. These key strategies are:

• Maintain best-in-class operations, in all respects

• Provide quality, valued products and services to our customers

• Lead industry in efficiency and effectiveness

• Capitalize on integration with other ExxonMobil businesses

• Selectively invest for resilient, advantaged returns

• Maximize value from leading-edge technology

Industry Conditions

• Across the Downstream business, the industry continues to experience significant volatility in margins. While margins recovered in 2003 versus 2002, we continue to see a downward long-term trend. Productivity gains derived from advancements in technology and operational efficiencies continue to take costs out of running the business, maintaining the downward pressure on industry margins.

• 2003 industry refining margins throughout the world improved versus 2002 and were particularly strong during the first half of 2003. The stronger margins reflected many crude oil and finished product market factors, including stronger product demand in the United States and elsewhere.

• Fuels Marketing margins were stronger in all regions, primarily due to the lag effect related to lower crude prices early in the year.

• Worldwide lube basestock margins were higher in 2003, reflecting tighter supply and demand fundamentals.

(GRAPHS)

2003 HIGHLIGHTS

Leadership in safety continues, with further improvement in employee and contractor safety performance.

Earnings nearly tripled versus 2002 to $3.5 billion.

More than $1.5 billion of pre-tax operating cost efficiencies and revenue enhancements were achieved. Further initiatives continue to be aggressively executed, leveraging proprietary technology, global scale, and the benefits of our global functional organization.

Downstream capital expenditures were $2.8 billion in 2003, up 14 percent versus 2002, reflecting increased investment required to meet low-sulfur fuel requirements. With these investments, more than 90 percent of our motor gasoline production capacity in the U.S. and Canada is low sulfur.

Return on capital employed was 13 percent, up from 5 percent in 2002.

Refinery throughput, at 5.5 million barrels a day, was up slightly versus 2002, with increased runs in Europe and Asia-Pacific reflecting improved industry economics.

Petroleum product sales were up 3 percent in 2003, largely due to stronger industry demand.


Statistical Recap	2003		2002		2001		2000		1999
Earnings (millions of dollars)		3,516		1,300		4,227		3,418		1,227
Refinery throughput (thousands of barrels per day)		5,510		5,443		5,542		5,642		5,977
Petroleum product sales (thousands of barrels per day)		7,957		7,757		7,971		7,993		8,887
Average capital employed (millions of dollars)		26,965		26,045		26,321		27,732		28,033
Return on average capital employed (percent)		13.0		5.0		16.1		12.3		4.4
Capital expenditures (millions of dollars)		2,781		2,450		2,322		2,618		2,401

Exxon Mobil Corporation 63 Downstream

DOWNSTREAM COMPETITIVE ADVANTAGES

ExxonMobil’s Downstream business is a large, diversified and profitable portfolio, with marketing presence and refining complexes the world over. In pursuing the Downstream strategies, the businesses have achieved competitive advantage in a number of areas:

• The Exxon, Mobil, and Esso brands are well recognized and respected throughout the world and are valued by customers for superior quality, performance, and reliability.

• Our global functional organization enables better prioritization and more rapid deployment of new technologies, while fully leveraging best practices and cost efficiencies across the Downstream businesses.

• The development and application of proprietary technology are key to ExxonMobil’s sustained competitive advantage. The competitive strength resulting from our in-house technical capability is enhanced through close cooperation between the technology and business organizations. This alignment of research priorities results in timely and cost-effective solutions to the highest-value business opportunities.

• The ability to fully leverage the world-class scale and integration of our global operations represents a key advantage for ExxonMobil. The rapid dissemination and application of knowledge gained in an individual operation to the rest of the global portfolio is one example of this advantage.

(GRAPHIC)

These areas of competitive advantage provide a solid base for further sustained improvements across all of our businesses — and a clear advantage over competition. Advances in technology and the outstanding ability of our people to find new and innovative ways to conduct business continue to deliver results.

REFINING AND SUPPLY

ExxonMobil’s Refining and Supply business focuses on providing quality products and feedstocks to our customers. We efficiently manufacture clean fuels, lubes, and other high-valued products utilizing a highly integrated asset base that includes an ownership interest in 45 refineries, located in 25 countries, with distillation capacity of 6.3 million barrels per day and lubricant basestock manufacturing capacity of 145 thousand barrels per day. Aglobal supply organization coordinates and optimizes the supply of crude and feedstock to the refineries, the mix of products produced, and working inventory. The supply organization also manages an efficient and flexible global logistics system that includes ownership interest in 32 crude oil and petroleum product tankers, more than 25 thousand miles of pipelines, and over 300 major petroleum products terminals.

World-Class Scale and Integration

The superior scale of ExxonMobil refineries provides us with a competitive advantage. Overall, our refineries are 80 percent larger than the industry average. Refining and Supply successfully leverages this scale to continuously improve the efficiency and effectiveness of ExxonMobil’s global operations.

ExxonMobil manufacturing facilities are also highly integrated, with over 80 percent of refining capacity integrated with either chemical and/or lubes and specialties operations. Integration enables the disposition of molecules to the highest-value outlet and provides

(GRAPHIC)

Downstream 64 Exxon Mobil Corporation

advantages through improved feedstock flexibility and lower site-operating costs.

A number of ExxonMobil refineries are concentrated in clusters within regions, which enables further operational and supply optimization. Major refining centers are located on the U.S. Gulf Coast, northwest Europe, Japan, and southeast Asia. Collectively these represent over 60 percent of our total refining capacity.

Investing to Meet Customer Needs for Improved Products

Refining and Supply capital expenditures are focused on selective and resilient investments to meet future product quality requirements, reduce environmental impact, further upgrade safety systems, lower operating costs, and produce higher-value products with lower-cost raw materials.

In 2003, we completed construction and successfully started up several facilities to meet customer needs for lower sulfur gasoline and diesel.

ExxonMobil’s proprietary SCANfining technology provides a competitive advantage in producing low-sulfur gasoline. Through application in our own refineries and licensing to third parties, this technology will be used in producing about 25 percent of the low-sulfur gasoline required by U.S. and Canadian consumers.

(BAR CHART)

Work continues on the $200 million enhanced-conversion project at the Port Jerome-Gravenchon, France, refinery. The project is designed to increase yields of motor fuels and high-value chemical feed-stock and also will provide the capability to meet lower sulfur motor fuel specifications in the future.

Overall, ExxonMobil’s Capital Project Management System continues to provide top-tier performance in project execution. Through a rigorous post-project completion reappraisal process and confirmed by external benchmarking, our project execution performance in refining is at the leading edge of industry. Leveraging our global scale, we continue to increase our capital execution efficiency.

Lower Sulfur Diesel & Gasoline Facility Start-Ups


		Location
United States
SCANfining Unit & Related Facilities		Baton Rouge, Louisiana
SCANfining Unit & Related Facilities		Baytown, Texas
Naphtha Desulfurization and Related Facilities		Beaumont, Texas
Selective Hydrogenation Unit and Related Facilities		Joliet, Illinois
Selective Hydrogenation Unit and Related Facilities		Billings, Montana
Canada
SCANfining Unit		Dartmouth, Nova Scotia
SCANfining Unit		Strathcona, Alberta
Naphtha Desulfurization and Related Facilities		Nanticoke, Ontario
Germany
Hydrogen Unit and Related Facilities		Ingolstadt
Japan
GO-fining Unit Upgrade & Related Facilities		Chiba
Diesel Hydrofining Unit Upgrades		Kawasaki, Okinawa,
		Sakai, Wakayama
2004 Scheduled Completions
SCANfining Unit		Chalmette, Louisiana
SCANfining Unit		Fos, France
GO-fining Unit Upgrade & Related Facilities		Port Jerome-Gravenchon, France
SCANfining Unit		Augusta, Italy
SCANfining Unit		Trecate, Italy
GO-fining Unit & Naphtha Desulfurization Upgrades and Related Facilities		Kawasaki, Japan
GO-fining Unit Upgrade & Related Facilities		Wakayama, Japan

(PHOTO)

This SCANfining processing unit at Baton Rouge, Louisiana, is one of the U.S. and Canadian low-sulfur motor gasoline production facilities which ExxonMobil started up in fourth quarter 2003.

Exxon Mobil Corporation 65 Downstream

Refining and Supply (continued)

Relentless Pursuit of Operating Efficiencies

Our scale, integration, and functional organization all provide competitive advantages that are unmatched in the industry. We leverage these strengths to continuously improve the operating efficiency of our facilities and reduce costs. Worldwide cash operating costs at our refineries are substantially below the industry average.

(GRAPHIC)

Improving the energy efficiency of our operations is a key contributor to this performance. ExxonMobil’s proprietary Global Energy Management System (GEMS) focuses on opportunities that reduce the energy consumed at our refineries and chemical complexes. In addition to individual site programs, detailed GEMS surveys have been conducted at 18 refinery/chemical complexes since the program’s inception in mid-1999. More than $400 million of pre-tax potential energy savings has been identified to date, equal to nearly 20 percent of the energy consumed at these facilities.

We also continue to make significant investments in cogeneration facilities. Cogeneration, the simultaneous production of power and steam, requires substantially less energy and results in lower emissions compared to making steam and power separately through conventional processes. More than 90 percent of the power generating capacity at our refining and chemical sites comes from cogeneration, meeting two-thirds of our power requirements at these facilities.

Three new cogeneration facilities are now under construction at ExxonMobil sites that will add about 700 megawatts of additional cogeneration capacity.

The ExxonMobil Reliability and Maintenance Management System yields additional efficiencies. This comprehensive program is designed to safely achieve higher plant reliability and availability while lowering total facility maintenance costs. The program has been applied to all ExxonMobil sites

(PHOTO)

(Left) Construction of ExxonMobil’s 90 megawatt cogeneration facility at Sarnia, Ontario, nears completion. (Right) ExxonMobil’s Singapore refinery is one of the world’s largest integrated refining/petrochemical sites and is well positioned to take advantage of the growing demand in this region of the world.

Downstream 66 Exxon Mobil Corporation

and provides a structured, disciplined approach to the management of more than $1 billion of annual maintenance work. Since its introduction, the system has reduced the amount of time that units are down for maintenance by 35 percent and has reduced maintenance costs by 25 percent.

(PHOTO)

Operators fine tune operations to maximize high-valued product yield at ExxonMobil’s Beaumont, Texas refinery.

Increasing Margin Capture

Improving profitability also includes identifying and delivering initiatives that increase available margins.

We are an industry leader in the operating reliability of our refinery network and we continue to improve the economic utilization of our refining capacity.

In addition, we continue to find new, innovative methods to increase the yields of high-value products, while reducing overall raw material costs. Advancements in molecular fingerprinting and modeling technologies result in an improved understanding of the behavior and characteristics of the materials moving through our refineries. We believe this is an area of significant competitive advantage and future opportunity.

(GRAPHIC)

Supply Optimization

We continue to deliver bottom line profit improvement by leveraging the scale of our global supply organization and capturing substantial logistics efficiencies. ExxonMobil’s global supply team integrates the operations across all the sites in each refining center, optimizing the overall supply chain of crude oil purchases, product blending, and inventory management. Crude diversification and flexibility were further increased in 2003, with more than 25 new crudes evaluated and run for the first time in our global refinery network.

Another benefit from supply optimization has been the reduction in capital employed derived, in part, from the integration of our global supply network. Over the past five years, we have taken 45 million barrels of crude and product inventory out of our global supply chain, freeing up more than $1 billion of working capital.

(GRAPHIC)

(PHOTO)

Exxon Mobil Corporation 67 Downstream

FUELS MARKETING

ExxonMobil’s Fuels Marketing business portfolio builds long-term value and better meets the needs of local consumers the world over through the execution of globally common, consistently applied business processes, marketing programs, and best practices. With operations in over 100 countries on six continents, Fuels Marketing serves a globally diverse customer base. The Exxon, Mobil, and Esso brands serve motorists at nearly 40 thousand service stations and provide over 1 million industrial and wholesale customers with quality fuel products. In addition, fuel products and services are provided to aviation customers at more than 700 airports and to marine customers at more than 300 marine ports around the world.

(PHOTO)

A British Airways Boeing 777 being refueled at London’s Heathrow Airport.

Fuels Marketing operates in an increasingly competitive worldwide marketplace. Our relentless focus on cost efficiency, growing income in convenience products and services, selective investments in new retail sites, and high-grading existing assets drives future growth in earnings and return on capital employed (ROCE).

Global Scale Delivers Operating Efficiencies

Improvements in productivity and cost efficiency continue to be key focus areas for Fuels Marketing. We take full advantage of our global organization structure and scale by leveraging innovative technology investments and by streamlining and automating work processes, while continuing to improve our customer service.

• In 2003, our initiatives reduced ongoing operating costs in Fuels Marketing by $245 million pre-tax.

• In the highly competitive retail business, disciplined execution of retail site operating best practices, systematically applied to our service stations across the world, drove down on-site operating costs, and increased earnings from convenience products and services. The improvements in profitability resulting from this approach are best demonstrated through reduction in a site’s “breakeven fuels margin.” This is the fuels margin required for a retail site to break even after netting against total site operating costs the non-fuels income at the site. With the combined effect of increased non-fuels income, disciplined management of operating costs, and higher average site volumes, we lower this margin. For example, at our U.S. company-operated sites, we have lowered this number by nearly 20 percent since 2000.

(GRAPHIC)

Focused Capital Management

Our capital management strategy is designed to continually improve the capital efficiency of our operational base.

• We use a focused market approach to retail investments to provide the foundation for building long-term value. This approach selects and prioritizes potential markets for investment through a rigorous, disciplined, and globally consistent market planning process.

• In addition to making selective and disciplined retail investment decisions, we continue to high-grade our portfolio of retail sites around the world. Since 1999, our total retail chain has been reduced by 14 percent, while total fuels volumes have been maintained.

• An important measure of efficiency in the retail business is market effectiveness, the ratio of the percentage of volume ExxonMobil sells in a market to the percentage of retail sites we have in that market. For industry across a given market the ratio is 1.0. For those markets where we have fully seen the benefits of a focused market approach, our market effectiveness has improved dramatically and is 40 percent better than the industry.

(GRAPHIC)

Downstream 68 Exxon Mobil Corporation

Customer Focused Initiatives to Improve Margins

Drawing on worldwide retailing experience, Fuels Marketing has developed a portfolio of innovative retail formats designed to appeal to customers globally and locally and to deliver outstanding financial results:

• Our popular On the Run convenience store format incorporates leading-edge technology and market research to provide value and convenience to our customers. In 2003, Fuels Marketing added 201 new On the Run stores worldwide, bringing the total to 1,000 in 41 countries and territories. In the U.S., ExxonMobil’s On the Run chain received the 2003 “Convenience Store Chain of the Year” award granted by Convenience Store Decisions magazine.

• Strategic alliances with leading food or grocery marketers in selected markets can enhance our convenience store offering by leveraging the strength of our alliance partner’s distribution system or product brand value. Examples include our alliances with Tesco in the United Kingdom and Thailand, Doutor and 7-Eleven in Japan, Tim Hortons in Canada, and Innscor across Africa. In 2003, Fuels Marketing expanded its alliance offerings to over 600 sites around the world.

• Innovative programs, including Speedpass and Upromise, create value and significantly increase customer loyalty. Speedpass users number more than 7 million customers in the U.S., Canada, Singapore, and Japan. Speedpass is accepted at over 10 thousand Exxon, Mobil, and Esso sites. ExxonMobil’s participation in the Upromise program — which helps families save for college — is unique in the industry. During 2003, Upromise membership increased to over 4 million participants in the United States. Research shows that the combined effect of these and other customer loyalty programs can increase ExxonMobil’s share of an average household’s monthly motor fuel purchases from 10 to nearly 90 percent.

(PHOTO)

(Top & Middle) On the Run stores at an Exxon service station located in Charlotte, North Carolina and at a Mobil service station located in Valley Park, Missouri.

(Bottom) Tesco Express store at an Esso service station alliance located in Northwood Hills, Middlesex (Greater London, U.K.).

(PHOTO)

(GRAPHIC)

Exxon Mobil Corporation 69 Downstream

LUBRICANTS AND SPECIALTIES

ExxonMobil is the world’s number one supplier of lube basestocks and a leading marketer of finished lubricants and specialty products. Supported by a highly trained field force, a strong distributor network, and a supply chain that includes a network of 13 refineries and 53 blend plants, ExxonMobil supplies high-quality products and application expertise to customers around the world.

Customer-Focused Technology

ExxonMobil’s leading lubricant brands — Exxon, Mobil, and Esso — continue to meet customer needs for industrial and transportation applications the world over. Customers rely on Exxon, Mobil, and Esso branded products because of their quality, reliability and technological leadership, a close association with many of the world’s leading original equipment manufacturers, and their demonstrated ability to withstand performance stresses, including those of motorsports racing. They are also backed by a variety of technical services designed to provide customers with worry-free operations.

As the world’s economies grow, so does the demand for higher-quality lubricants. ExxonMobil continued to grow its share of the highly profitable synthetic lubricants market in 2003. Following a successful 2002 launch in the U.S., Mobil 1 with SuperSyn, using new anti-wear technology, was introduced to over 30 additional markets in Europe, Asia-Pacific, and Latin America in 2003.

(NEW UNIT AT THE FAWLEY REFINERY)

This new unit at the Fawley refinery in the United Kingdom upgrades low-quality heavy oil to premium-quality Visom lube basestock.

Adding further to the success of Mobil 1 motor oil in 2003 and expected to drive future growth:

• Mercedes-Benz named this product as factory-fill engine oil and recommended service fill for its long-awaited 626-horsepower Mercedes-Benz SLR McLaren sports car. It joins an already impressive list of worldwide automotive makers who specify Mobil 1 for factory fill in models including, Porsche, Cadillac, Mitsubishi Lancer, and Corvette.

(BAR CHARTS)

Downstream 70 Exxon Mobil Corporation

• Beginning in 2003, Mobil branded products were also named “Official Lubricants of NASCAR.” This association with one of America’s fastest-growing sporting events reinforces the Mobil brand’s high-performance reputation, and provides a level of exposure that will benefit sales across the Mobil brand family.

(NASCAR CAR)

About 70 percent of NASCAR race teams use Mobil 1.

In addition to providing customers with leading-edge product technology like Mobil 1, ExxonMobil also applies technology in improving customer satisfaction and service. For example, in 2003, ExxonMobil developed new e-business applications to improve the way we interact with customers. Customers in many parts of the world can place orders directly, check order status, and manage open accounts using the Internet. Over 30 percent of Lubes and Specialties’ 2003 revenue was derived via e-ordering. ExxonMobil also launched a web-based global database with product data sheets available in more than 20 languages. In addition, ExxonMobil introduced Signum Oil Analysis in 2003 for customers who want to receive oil analysis reports on-line.

Strategic Global Alliances

Globally respected brands and industry-leading technology enable ExxonMobil to build upon our leading position in strategic global alliances with automotive and equipment manufacturers. A strong global presence enables ExxonMobil to better serve customers with worldwide operations that demand consistently reliable, high-quality products and services. For example, ExxonMobil is a global supplier of premium oils to Caterpillar factories and dealers in over 90 countries. ExxonMobil’s worldwide service capability and integrated sales focus on strategic global customers differentiate us from competitors.

Motorsports sponsorships, like those in Formula 1 with West McLaren Mercedes and Toyota, lead to new business with strategic global customers and provide an ideal environment for developing high-performance lubricants. Sponsorship of Toyota’s new Formula 1 team, for example, helped strengthen ExxonMobil’s position as a primary supplier of factory and service fill lubricants for Toyota Motor Company.

Relationships with strategic accounts extend off the track as well, through our technology partnerships with General Motors, Toyota, and DaimlerChrysler, where we collaborate on developing innovative new lubricants and fuels products.

Supply Chain Efficiency

ExxonMobil continued to optimize our lubricants supply chain in 2003, improving both operating and capital efficiency. Further optimization of our global network of lube oil blending plants resulted in a 15 percent reduction in capital employed as inventories of both raw materials and finished products were reduced by 10 percent. Since 1999, our blend plant utilization has increased by over 40 percent.

Additional efficiencies are expected as sophisticated supply chain planning tools are used to improve customer demand forecasts and further increase the efficiency of our global network of assets.

(LINE GRAPH)

Lubes volumes have been maintained while complexity was driven out of the supply chain.

Exxon Mobil Corporation 71 Downstream

THROUGHPUT, CAPACITY, AND UTILIZATION⁽¹⁾


	2003		2002		2001		2000		1999
Refinery Throughput⁽²⁾ (thousands of barrels per day)
United States		1,806		1,834		1,811		1,862		1,930
Canada		450		447		449		451		441
Europe⁽³⁾		1,566		1,539		1,563		1,578		1,782
Japan		704		671		707		708		695
Southeast Asia		686		708		729		754		842
Latin America/Other		298		244		283		289		287

Worldwide		5,510		5,443		5,542		5,642		5,977

Average Refinery Capacity⁽⁴⁾ (thousands of barrels per day)
United States		1,919		1,895		1,878		1,938		1,977
Canada		501		500		499		498		494
Europe⁽³⁾		1,768		1,756		1,740		1,732		2,050
Japan		774		770		761		758		758
Southeast Asia		1,027		1,048		1,045		1,055		1,053
Latin America/Other		308		299		310		318		334

Worldwide		6,297		6,268		6,233		6,299		6,666

Utilization of Refining Capacity (percent)
United States		94		97		96		96		98
Canada		90		89		90		91		89
Europe⁽³⁾		89		88		90		91		87
Japan		91		87		93		93		92
Southeast Asia		67		68		70		71		80
Latin America/Other		97		82		91		91		86

Worldwide		88		87		89		90		90

(1)		Includes the Benicia, California, refinery until its divestment in May 2000. Excludes ExxonMobil’s minor interests in certain small refineries.

(2)		Refinery throughput includes 100 percent of crude oil and feedstocks sent directly to atmospheric distillation units in operations of ExxonMobil and majority-owned subsidiaries. For companies owned 50 percent or less, throughput includes the greater of either crude and feedstocks processed for ExxonMobil or ExxonMobil’s equity interest in raw material inputs.

(3)		Data for 1999 includes Mobil-BP European joint-venture refineries.

(4)		Refinery capacity is the stream-day capability to process inputs to atmospheric distillation units under normal operating conditions, less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. These annual averages include partial-year impacts for capacity additions or deletions during the year. Any idle capacity that cannot be made operable in a month or less has been excluded. Capacity volumes include 100 percent of the capacity of refinery facilities managed by ExxonMobil or majority-owned subsidiaries. At facilities of companies owned 50 percent or less, the greater of either that portion of capacity normally available to ExxonMobil or ExxonMobil’s equity interest is included.

Downstream 72 Exxon Mobil Corporation

RETAIL SITES

(GRAPH)


(number of sites at year end)	2003		2002		2001		2000		1999
United States⁽¹⁾
Owned/leased		3,072		3,346		3,501		3,769		4,591
Distributors/resellers		9,401		9,787		9,805		10,269		11,929

Canada
Owned/leased		787		865		927		978		997
Distributors/resellers		1,287		1,283		1,324		1,418		1,506

Europe⁽²⁾
Owned/leased		4,817		4,955		5,079		4,912		4,966
Distributors/resellers		3,582		3,813		3,960		4,370		4,606

Asia-Pacific
Owned/leased		2,912		3,026		3,125		3,266		3,311
Distributors/resellers		6,318		6,682		7,171		7,842		8,018

Latin America
Owned/leased		1,429		1,449		1,440		1,465		1,476
Distributors/resellers		3,891		4,465		4,427		4,630		4,786

Middle East/Africa
Owned/leased		1,360		1,443		1,444		1,460		1,224
Distributors/resellers		632		672		650		622		823

Total
Owned/leased		14,377		15,084		15,516		15,850		16,565
Distributors/resellers		25,111		26,702		27,337		29,151		31,668

Grand total		39,488		41,786		42,853		45,001		48,233

(1)		1999 includes approximately 2,400 Exxon and Mobil retail sites that the company was required to divest in 2000.

(2)		Excludes the Mobil-BP European joint-venture retail sites.

Exxon Mobil Corporation 73 Downstream

REFINING CAPACITY AT YEAR-END 2003⁽¹⁾


							Capacity at 100%
					ExxonMobil												ExxonMobil
					Share		Atmospheric		Catalytic				Residuum				Interest
(thousands of barrels per calendar day)					kBD⁽²⁾		Distillation		Cracking		Hydrocracking		Conversion⁽³⁾		Lubes⁽⁴⁾		%
United States
Torrance	California		l			149		149		91		20		52		—		100
Joliet	Illinois		l			238		238		93		—		56		—		100
Baton Rouge	Louisiana	n	l			494		494		229		24		113		16		100
Chalmette	Louisiana		l	t		92		183		68		19		33		—		50
Billings	Montana		l			58		58		20		6		9		—		100
Baytown	Texas	n	l			557		557		203		26		81		20		100
Beaumont	Texas	n	l			349		349		108		61		48		13		100

Total United States						1,937		2,028		812		156		392		49

Canada
Strathcona	Alberta					187		187		54		—		—		2		69.6
Dartmouth	Nova Scotia			t		82		82		29		—		—		—		69.6
Nanticoke	Ontario		l			112		112		48		—		—		—		69.6
Sarnia	Ontario	n				121		121		26		17		23		6		69.6

Total Canada						502		502		157		17		23		8

Europe
Antwerp	Belgium	n	l			265		265		34		—		—		—		100
Fos-sur-Mer	France		l	t		119		119		28		—		—		—		83
Port Jerome- Gravenchon	France	n	l			233		233		34		—		—		17		83
Ingolstadt	Germany		l	t		106		106		28		—		—		—		100
Karlsruhe	Germany		l	t		76		302		87		—		50		—		25
Augusta	Italy		l	t		190		190		46		—		—		18		100
Trecate	Italy		l	t		174		174		29		—		—		—		75.4
Rotterdam	Netherlands	n	l			182		182		—		49		39		—		100
Slagen	Norway					110		110		—		—		32		—		100
Fawley	United Kingdom	n	l			317		317		72		—		—		9		100

Total Europe						1,772		1,998		358		49		121		44

Japan
Chiba	Japan		l			88		175		34		39		—		—		50
Kawasaki⁽⁵⁾	Japan	n	l			296		296		88		23		—		—		50
Okinawa⁽⁵⁾	Japan					90		90		—		—		—		—		43.8
Sakai⁽⁵⁾	Japan		l	t		140		140		38		—		—		—		50
Wakayama⁽⁵⁾	Japan		l	t		160		160		38		—		—		7		50

Total Japan						774		861		198		62		—		7

n		Integrated refinery and chemical complex

l		Cogeneration capacity

t		Refineries with some chemical production

(1)		Capacity data is based on 100 percent of rated refinery process unit capacities.

(2)		ExxonMobil share reflects 100 percent of atmospheric distillation capacity in operations of ExxonMobil and majority-owned subsidiaries. For companies owned 50 percent or less, ExxonMobil share is the greater of ExxonMobil’s equity interest or that portion of distillation capacity normally available to ExxonMobil.

(3)		Includes thermal cracking, visbreaking, coking, and hydrorefining processes.

(4)		Lubes capacity based on dewaxed oil production.

(5)		Operated by majority-owned subsidiaries.

(6)		Facility mothballed.

Downstream 74 Exxon Mobil Corporation

Refining Capacity at Year-End 2003⁽¹⁾ (continued)


							Capacity at 100%
					ExxonMobil												ExxonMobil
					Share		Atmospheric		Catalytic				Residuum				Interest
(thousands of barrels per calendar day)					kBD⁽²⁾		Distillation		Cracking		Hydrocracking		Conversion⁽³⁾		Lubes⁽⁴⁾		%
Southeast Asia
Adelaide⁽⁶⁾	Australia					—		—		—		—		—		—		100
Altona	Australia	n				130		130		29		—		—		—		100
Port Dickson	Malaysia					86		86		—		—		—		—		65
Whangerei	New Zealand					28		104		—		26		—		—		19.2
Jurong/PAC	Singapore	n	l			587		587		—		34		116		29		100
Sriracha	Thailand	n	l			174		174		35		—		—		—		87.5

Total Southeast Asia						1,005		1,081		64		60		116		29

Latin America/Other
Campana	Argentina		l	t		85		85		26		—		24		—		100
Sonara	Cameroon					3		42		—		—		—		—		8
Abidjan	Cote d‘Ivoire					5		65		—		15		—		—		8
Acajutla	El Salvador					22		22		—		—		—		—		65
Sogara	Gabon					2		17		—		—		—		—		11.7
Martinique	Martinique					2		17		—		—		—		—		14.5
Managua	Nicaragua			t		20		20		—		—		—		—		100
La Pampilla	Peru					6		100		7		—		—		—		6
Yanbu	Saudi Arabia					188		375		91		—		46		—		50
Dakar	Senegal					3		27		—		—		—		—		11.8

Total Latin America/Other						336		770		124		15		70		—

Grand total						6,326		7,240		1,713		359		722		137

n		Integrated refinery and chemical complex

l		Cogeneration capacity

t		Refineries with some chemical production

(1)		Capacity data is based on 100 percent of rated refinery process unit capacities.

(2)		ExxonMobil share reflects 100 percent of atmospheric distillation capacity in operations of ExxonMobil and majority-owned subsidiaries. For companies owned 50 percent or less, ExxonMobil share is the greater of ExxonMobil’s equity interest or that portion of distillation capacity normally available to ExxonMobil.

(3)		Includes thermal cracking, visbreaking, coking, and hydrorefining processes.

(4)		Lubes capacity based on dewaxed oil production.

(5)		Operated by majority-owned subsidiaries.

(6)		Facility mothballed.

ADDITIONAL LUBE BASE OIL REFINING CAPACITY AT YEAR-END 2003


		ExxonMobil				ExxonMobil
		Equity Share				Interest
(thousands of barrels per calendar day)		kBD		Lubes⁽¹⁾		%

Dunkirk	France		3		6		50
Jeddah	Saudi Arabia		1		6		30
Yanbu	Saudi Arabia		2		6		30

Total			6		18

(1)

Lubes capacity based on dewaxed oil production.

Exxon Mobil Corporation 75 Downstream

PETROLEUM PRODUCT SALES⁽¹⁾ BY GEOGRAPHIC AREA


(thousands of barrels per day)	2003		2002		2001		2000		1999
United States
Motor gasoline, naphthas		1,606		1,608		1,585		1,511		1,611
Heating oils, kerosene, diesel oils		456		432		442		443		478
Aviation fuels		234		256		261		250		293
Heavy fuels		93		92		102		104		97
Lubricants, specialty, and other petroleum products		340		343		361		361		439

Total market and supply sales		2,729		2,731		2,751		2,669		2,918

Canada
Motor gasoline, naphthas		249		246		238		231		232
Heating oils, kerosene, diesel oils		184		176		173		173		169
Aviation fuels		29		27		30		33		33
Heavy fuels		36		31		35		33		31
Lubricants, specialty, and other petroleum products		104		113		109		107		122

Total market and supply sales		602		593		585		577		587

Europe
Motor gasoline, naphthas		558		571		584		607		764
Heating oils, kerosene, diesel oils		840		815		823		809		1,017
Aviation fuels		197		192		201		225		238
Heavy fuels		217		213		214		232		272
Lubricants, specialty, and other petroleum products		249		251		257		256		306

Total market and supply sales		2,061		2,042		2,079		2,129		2,597

Asia-Pacific
Motor gasoline, naphthas		523		442		439		454		499
Heating oils, kerosene, diesel oils		599		518		581		585		632
Aviation fuels		109		123		136		144		151
Heavy fuels		218		201		234		233		240
Lubricants, specialty, and other petroleum products		226		219		219		251		296

Total market and supply sales		1,675		1,503		1,609		1,667		1,818

Latin America
Motor gasoline, naphthas		180		194		198		206		227
Heating oils, kerosene, diesel oils		203		204		211		207		206
Aviation fuels		43		44		48		51		53
Heavy fuels		40		37		52		40		48
Lubricants, specialty, and other petroleum products		24		23		23		24		28

Total market and supply sales		490		502		532		528		562

(1)

Petroleum product sales include 100 percent of the sales of ExxonMobil and majority-owned subsidiaries, and the ExxonMobil equity interest in sales by companies owned 50 percent or less, including the Mobil-BP joint venture that was dissolved as a result of the merger.

Downstream 76 Exxon Mobil Corporation

Petroleum Product Sales⁽¹⁾ by Geographic Area (continued)


(thousands of barrels per day)	2003		2002		2001		2000		1999
Middle East/Africa
Motor gasoline, naphthas		122		115		121		113		95
Heating oils, kerosene, diesel oils		150		147		159		156		156
Aviation fuels		50		49		45		46		45
Heavy fuels		34		30		31		52		18
Lubricants, specialty, and other petroleum products		44		45		59		56		91

Total market and supply sales		400		386		415		423		405

Worldwide
Motor gasoline, naphthas		3,238		3,176		3,165		3,122		3,428
Heating oils, kerosene, diesel oils		2,432		2,292		2,389		2,373		2,658
Aviation fuels		662		691		721		749		813
Heavy fuels		638		604		668		694		706
Lubricants, specialty, and other petroleum products		987		994		1,028		1,055		1,282

Total market and supply sales		7,957		7,757		7,971		7,993		8,887

(1)

PETROLEUM PRODUCT SALES


(thousands of barrels per day)	2003		2002		2001		2000		1999
Market and Supply Sales⁽¹⁾
Market sales
Motor gasoline, naphthas		2,273		2,288		2,270		2,311		2,465
Heating oils, kerosene, diesel oils		1,626		1,625		1,671		1,674		1,865
Aviation fuels		514		529		566		581		576
Heavy fuels		367		358		371		380		437
Lubricants, specialty, and other petroleum products		483		494		484		519		580

Total market sales		5,263		5,294		5,362		5,465		5,923

Total supply sales		2,694		2,463		2,609		2,528		2,964

Total market and supply sales		7,957		7,757		7,971		7,993		8,887

(1)

Market sales are to retail site dealers, consumers (including government and military), jobbers, and small resellers. Supply sales are to large oil marketers, large unbranded resellers, and other oil companies.

Exxon Mobil Corporation 77 Downstream

Chemical Strategies

ExxonMobil Chemical continues to produce industry-leading returns and earnings growth through the effective implementation of focused long-term strategies:

• Focus on businesses that capitalize on core competencies

• Capture full benefits of integration across all ExxonMobil operations

• Continuously reduce costs to achieve best-in-class performance

• Invest selectively in internationally advantaged projects

• Build proprietary technology positions

Industry Conditions

• Demand in the established markets of North America remained relatively flat, with industrial production lagging the economic recovery.

• European demand grew marginally.

• Growth in Asia slowed at the beginning of the year and recovered sharply during the second half.

• Challenged by historically high and volatile energy and feedstock costs, industry prices increased sharply compared to 2002.

• On average, industry margins improved slightly.

(GRAPHS)

(1) Annual averages based on published industry data.

2003 HIGHLIGHTS

Earnings of $1,432 million in 2003 were the highest of the past five years and 73 percent higher than in 2002. Our outstanding mix of businesses, broad geographic diversity, ongoing capture of cost efficiencies and feedstock integration helped ExxonMobil significantly improve profitability in a challenging business environment.

Return on average capital employed reached 10.2 percent, up from 6.1 percent in 2002. ExxonMobil Chemical’s returns continued to exceed the average returns of major competitors. Over the last 10 years, our Chemical business achieved an average return of more than 12 percent while making substantial investments to support long-term growth. During the same period, key competitors’ returns averaged 9 percent.

2003 prime product sales volume of 26.6 million tons was equivalent to the record level in 2002, as growth in Asia-Pacific offset lower sales in North America.

Capital expenditures were $0.7 billion. We invested selectively in high-return efficiency projects and to support the growth of our specialty businesses.


Statistical Recap	2003		2002		2001		2000		1999
Earnings⁽¹⁾ (millions of dollars)		1,432		830		882		1,161		1,354
Prime product sales⁽²⁾ (thousands of metric tons)		26,567		26,606		25,780		25,637		25,283
Average capital employed (millions of dollars)		14,099		13,645		13,839		13,814		12,462
Return on average capital employed (percent)		10.2		6.1		6.4		8.4		10.9
Capital expenditures (millions of dollars)		692		954		872		1,468		2,243

(1)		Earnings include a $175 million extraordinary gain on asset divestitures in 2001.

(2)		Total Chemical product sales including ExxonMobil’s share of equity-company volumes and finished product transfers to the Downstream. Carbon black oil volumes are excluded.

Chemical Profile

• Leading financial returns throughout the business cycle

• $14 billion of capital employed

• More than $25 billion in revenues

• Leading manufacturing capabilities at highly integrated sites

• Products marketed in more than 150 countries

Exxon Mobil Corporation 79 Chemical

FOCUSED STRATEGIES

Implementation of focused, long-term strategies has produced competitive advantages that result in superior returns versus competition across the business cycle. These advantages include our business mix, investment discipline, petroleum integration, world-class operations, leading proprietary technologies, and product application expertise. The strategies are designed to increase our competitive advantage and achieve earnings growth and attractive returns, strengthening our position as the world’s premier petrochemical company.

Capitalizing on Core Competencies

ExxonMobil’s unique mix of chemical business lines delivers superior performance relative to competition throughout the business cycle. The portfolio includes strong positions in the supply chain for many of the largest-volume and highest-growth petrochemicals in the global economy.

• One of the largest producers of olefins, the basic petrochemical building blocks.

• Largest worldwide producer of polyolefins, including polyethylene, the largest-volume plastic, and polypropylene, one of the fastest growing and most versatile polymers.

• Largest global producer of paraxylene and benzene. Paraxylene is one of the fastest growing petrochemicals and the main raw material for the manufacture of polyester fibers and polyethylene terephthalate (PET) recyclable bottles. Benzene is a primary building block for a broad array of products ranging from nylon to polystyrene.

The company also has a premier position in a diverse portfolio of less-cyclical specialty business lines. These leading specialty businesses include butyl polymers, ethylene elastomers, synthetic lubricant basestock fluids, petroleum additives, oriented polypropylene film, plasticizers, hydrocarbon and oxygenated fluids, oxo-alcohols, acids and adhesive polymers. We are building strong competitive advantages through unique combinations of low-cost feedstocks, proprietary technology, operational excellence, product application expertise and synergies between businesses. ExxonMobil continues to grow and strengthen these businesses through new product development, enhanced marketing focus, and expansion into new markets.

(GRAPH)

(1)Competitor chemical returns estimated for 2003.

(BAR CHART)

Capturing Full Benefits of Integration

More than 90 percent of our owned and operated chemical capacity is adjacent to and integrated with large refining complexes or upstream gas processing facilities. ExxonMobil’s long-standing emphasis on petroleum integration is a key component of our strong competitive position. Manufacturing sites are designed and managed to maximize synergies via optimized molecule management, coordinated technology development, joint facilities planning, and sharing of common systems and support functions.

The flexibility that comes from feedstock and fuels integration with world-scale refineries allows ExxonMobil Chemical to consistently outperform competition. Production plans at ExxonMobil’s integrated petrochemical complexes are reviewed continuously and optimized using sophisticated models to identify the highest value for process streams. Supply plans are also optimized on a regional and global level in response to changes in feedstock costs and market conditions.

(THAILAND AROMATICS PLANT GRAPHIC)

The Thailand aromatics plant uses feedstocks supplied by the adjacent Sriracha refinery.

Chemical 80 Exxon Mobil Corporation

Continually Reduce Costs to Achieve Best-in-Class Performance

ExxonMobil Chemical maintains a constant focus on improving efficiency and reducing the costs of manufacturing, selling, and distributing our products.

The company’s demonstrated strength of focusing on safety, productivity, reliability, and quality enhances the contribution of existing assets. The application of a structured program to identify and rapidly capture process improvements continues to support earnings growth by optimizing unit throughput, improving plant reliability, and increasing effective capacity at significantly less than grass-roots cost. Leveraging our global scale across our portfolio is also a key contributor to our efficiency program.

Energy efficiencies and savings opportunities are being identified and captured at ExxonMobil facilities through the extensive use of our Global Energy Management System, a uniform set of best practices and technologies.

(BAR CHART)

Over the past three years, the energy consumed (per unit of output) by our plants decreased by 10%.

Selectively Investing in Internationally Advantaged Projects

Investment discipline is a cornerstone of ExxonMobil Chemical’s strategy. Each investment requires unique competitive advantages to enhance returns above those generally available to industry. A highly structured approach to project evaluation, development, execution, and post-completion reappraisals contributes to effective project selection and implementation.

• Our recent investments in capacity additions in Saudi Arabia and Singapore allowed us to profitably increase our participation in high-growth markets such as China. The excellent performance of these sites provided major contributions to the earnings increase we accomplished in 2003.

• Construction of the Baton Rouge metallocene ethylene elastomers plant was completed in 2003. This new, one of a kind facility, which will produce more than 90 thousand tons annually, uses ExxonMobil’s Exxpol metallocene catalyst and a proprietary manufacturing process to make next-generation elastomers. This facility further strengthens our position as a premier supplier of ethylene elastomers.

• ExxonMobil Chemical’s films business completed an expansion of its manufacturing plant in Shawnee, Oklahoma. The installation of a new 6.6 meter orienter provides additional annual capacity of 15 thousand tons and helps us meet growing demand for white opaque films used in the packaging and labeling markets.

• An expansion of the Fina-Antwerp Olefins steam crackers (ExxonMobil share, 35 percent) was completed in 2003. The project increases ExxonMobil’s share of ethylene produced at the complex by more than 50 thousand tons per year, or 11 percent.

(SHAWNEE FILMS PLANT GRAPHIC)

ExxonMobil Chemical’s Shawnee films plant expanded its capacity in 2003 for white opaque films, used in the packaging and labeling markets.

Exxon Mobil Corporation 81 Chemical

Focused Strategies (continued)

• Three new steam and power cogeneration facilities are being built at the Beaumont, Baytown, and Sarnia integrated refining and petrochemical sites. These new facilities will improve the reliability and increase the energy efficiency of the chemical plants at the complexes. Added benefits include reduced emissions of carbon dioxide, sulfur dioxide, and other gases.

• The competitiveness of the Baytown olefins plant was further improved with the completion of a feed flexibility and efficiency project. In addition to a 24 thousand ton capacity increase, the project reduced energy consumption and increased the site’s ability to process advantaged feedstocks.

• The company completed a project to increase the efficiency of the Baton Rouge, Louisiana, isopropyl alcohol plant. The project also resulted in a 10 percent capacity increase.

• Implementation of our Global Enterprise Management System continued in 2003. This global information technology platform, which supports a broad range of business processes, strengthens our global operations and enables the implementation of common practices around the world in support of consistent service delivery to our global customers.

• ExxonMobil continues to explore additional opportunities for advantaged growth in both established and developing markets of the world, including China and a potential joint-venture project for the production of petrochemicals in Venezuela.

ExxonMobil Chemical actively manages its assets to ensure that all are contributing to the company’s objectives. When those objectives are not met, selective divestments are made.

• In 2003, Tonen Chemical Company (ExxonMobil share, 50 percent) sold its 35 percent interest in Japan Polychem, a Japan-based polyolefins producer, to Mitsubishi Chemicals.

• Our low-molecular-weight polyisobutylene business was sold to BASF.

• Our synthetic polyester-based refrigeration lubricant business was sold to Estech Gmbh & Co., KG and Hatco Corporation.

(BAYTOWN HALOBUTYL PLANT GRAPHIC)

Commercial shipment from the expanded Baytown Halobutyl plant began in 2003. Halobutyl is a specialty polymer used in inner liners of tubeless tires.

(BAR CHARTS)

The company continued to expand global manufacturing capacities for key petrochemical products.

Chemical 82 Exxon Mobil Corporation

OVERVIEW OF KEY PRODUCTS

ExxonMobil Chemical is a premier supplier of olefins, polyolefins, and aromatics, and has strong market positions in a wide variety of other petrochemicals and catalysts. Our products are part of many modern consumer products. New and enhanced products and applications are constantly being developed to meet evolving customer needs.

(PRODUCT LIST)

Polyethylene Packaging – Flexible food packaging, bags and sacks Consumer – Milk bottles, storage containers, toys Automotive – Fuel tanks, storage tanks Polypropylene Consumer – Film, diapers, personal care, health care Automotive – Interior and exterior trim parts Appliances – Clothes washer parts, dishwasher liners Butyl Polymers Tires – Inner liners, treads, sidewalls Medical – Syringe parts, vial closures Automotive – Hoses, tubing, engine mounts Sporting Goods – Soccer balls Construction – Window sealants Ethylene Elastomers Automotive – Hoses, belts, door and window seals Electrical – Cable insulation Industrial – Roof sheeting Consumer – Appliances, electronics, household goods Adhesive Polymers Consumer – Tapes, labels, diaper assembly Industrial – Glues, packaging, road marking, tires Medical – Adhesive strips Oriented Polypropylene Film Consumer – Flexible packaging, labels Industrial – Tape, protective laminates Petroleum Additives Transportation – Motor and gear lubricants, transportation fuels Synthetic Base Fluids Automotive – Synthetic engine, gear, and transmission oils Industrial – Synthetic lubricants, fiber optic cable gel Consumer – Skin and hair care Oxygenated Fluids Industrial – Paints, adhesives, magnetic tapes Medical – Rubbing alcohol Consumer – Paints, cleaning fluids, de-icing fluids Hydrocarbon Fluids Industrial – Degreasers, agricultural chemicals, adhesives, inks Consumer – Aerosol products, paints, combustion specialties Aromatics Consumer – PET(1) bottles and packaging, expanded polystyrene cups, polyester and nylon fabrics Automotive – ABS(2) auto parts Industrial – Paint, coatings Oxo-Alcohols/Acids Consumer – Tapes, shampoo Petroleum Additives – Motor oil Industrial – Cleaners, coatings Plasticizers Automotive – Dashboards, side moldings Construction – Flooring, wall covering, carpet backing Consumer – Garden hoses, sports equipment, shoes Electrical – Electrical insulation (1) Polyethylene Terephthalate (2) Acrylonitrile Butadiene Styrene ExxonMobil Chemical’s products are used in a broad variety of applications, ranging from garden hoses to non-woven fabrics and food packaging.

Exxon Mobil Corporation Chemical 83

VOLUMES AND REVENUES


(includes ExxonMobil’s share of equity companies)	2003		2002		2001		2000		1999
Worldwide Production Volumes
(thousands of metric tons)
Ethylene		7,567		7,539		7,320		6,725		6,536
Polyethylene		6,091		6,235		5,768		5,507		5,251
Polypropylene		1,965		1,944		1,701		1,297		1,163
Paraxylene		2,531		2,275		2,088		2,326		2,016
Prime Product Sales Volumes⁽¹⁾
(thousands of metric tons)
Americas⁽²⁾		11,939		12,614		12,278		12,913		12,754
Europe/Middle East/Africa		7,180		7,002		6,661		6,424		6,300
Asia-Pacific		7,448		6,990		6,841		6,300		6,229

Total		26,567		26,606		25,780		25,637		25,283

Prime Product Sales Volumes⁽¹⁾
(thousands of metric tons)
Less-cyclical specialty businesses		6,113		6,022		5,711		6,030		6,374
Olefins/polyolefins/aromatics/other		20,454		20,584		20,069		19,607		18,909

Total		26,567		26,606		25,780		25,637		25,283

Revenues by Geographic Area
(millions of dollars)
Americas⁽²⁾		11,471		9,661		9,340		11,216		8,338
Europe/Middle East/Africa		7,084		5,656		5,573		5,813		4,805
Asia-Pacific		6,698		4,993		4,399		4,474		2,770

Total		25,253		20,310		19,312		21,503		15,913

(1)		Total chemical product sales including ExxonMobil’s share of equity-company volumes and finished-product transfers to the Downstream business. Carbon black oil volumes are excluded.

(2)		Includes the United States, Canada, and Latin America.

(GRAPH)

Prime product sales volumes of 26.6 million metric tons were equivalent to the record 2002 production.

MAJOR PROJECT START-UPS


		Capacity⁽¹⁾
	Location	(metric tons per year)		Start-Up
Olefins/Polyolefins
Ethylene/propylene (35% Interest)	Antwerp, Belgium		56,000		2003
Ethylene/propylene	Baytown, Texas		24,000		2003
Ethylene (50% Interest)	Yanbu, Saudi Arabia		78,000		2004
Polyethylene (50% Interest)	Yanbu, Saudi Arabia		47,000		2004
Ethylene glycol (50% Interest)	Yanbu, Saudi Arabia		52,000		2004
Less-Cyclical Specialty Businesses
Oriented polypropylene film	Shawnee, Oklahoma		15,000		2003
Isopropyl alcohol	Baton Rouge, Louisiana		30,000		2003
Ethylene elastomers	Baton Rouge, Louisiana		90,000		2004
Oriented polypropylene film	Virton, Belgium		16,000		2004

(1)

ExxonMobil equity share of capacity addition.

(GRAPH)

2003 expenditures were focused on high-return efficiency projects and incremental expansions in less-cyclical specialty businesses.

Chemical 84 Exxon Mobil Corporation

MANUFACTURING LOCATIONS⁽¹⁾

Location

Product

United States

Baton Rouge, Louisiana

Baytown, Texas

Bayway, New Jersey

Beaumont, Texas

Chalmette, Louisiana

Edison, New Jersey

Houston, Texas

Jeffersonville, Indiana

LaGrange, Georgia

Mont Belvieu, Texas

Pensacola, Florida

Plaquemine, Louisiana

Shawnee, Oklahoma

Stratford, Connecticut

Canada

Belleville, Ontario

Dartmouth, Nova Scotia

Sarnia, Ontario

Latin America

Campana, Argentina

Managua, Nicaragua

Paulinia, Brazil

Europe

Amsterdam, Netherlands

Antwerp, Belgium

Augusta, Italy

Brindisi, Italy

Cologne, Germany

Fawley, United Kingdom

Fife, United Kingdom

Fos-sur-Mer, France

Geleen, Netherlands

Harnes, France

Ingolstadt, Germany

Karlsruhe, Germany

Kerkrade, Netherlands

Meerhout, Belgium

Newport, United Kingdom

Notre Dame de Gravenchon — Lillebonne, France

Rotterdam, Netherlands

Trecate, Italy

Virton, Belgium

Middle East

Al-Jubail, Saudi Arabia

Yanbu, Saudi Arabia

Asia-Pacific

Adelaide, Australia⁽²⁾

Altona, Australia

Botany Bay, Australia

Jinshan, China

Kashima, Japan

Kawasaki, Japan

Nasu, Japan

Panyu, China

Sakai, Japan

Singapore

Sriracha, Thailand

Wakayama, Japan

Yosu, South Korea

n		Olefins/Aromatics

Δ		Polymers

l		Other Chemicals

t		Film

		Bold type indicates large/integrated production complexes, based on size or breadth of product slate.

(1)		Includes joint-venture sites, with the exception of the Infineum additives joint ventures.

(2)		Facility mothballed.

(BAR CHART)

Exxon Mobil Corporation Chemical 85

Frequently Used Terms

Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other terms. These definitions are provided to facilitate understanding of the terms and their calculation. In the case of financial measures that we believe constitute “non-GAAP financial measures” under Securities and Exchange Commission Regulation G, we provide a reconciliation to the most comparable Generally Accepted Accounting Principles (GAAP) measure and other information required by that rule.

Earnings Excluding Merger Expenses, Discontinued Operations, Accounting Change, and Other Special Items

In addition to reporting U.S. GAAP defined net income, ExxonMobil also presents a measure of earnings that excludes merger effects, earnings from discontinued operations, a required accounting change, and other quantified special items. Earnings excluding the aforementioned items is a non-GAAP financial measure and is included to facilitate comparisons of base business performance across periods. A reconciliation to net income is shown on page 10.

We also refer to earnings excluding merger expenses, discontinued operations, accounting change and other special items as normalized earnings.

Earnings per share amounts use the same average common shares outstanding as used for the calculation of net income per common share and net income per common share – assuming dilution.

Operating Costs

Operating costs are the combined total of production, manufacturing, selling, general, administrative, exploration, depreciation, and depletion expenses from the Consolidated Statement of Income and ExxonMobil’s share of similar costs for equity companies. Operating costs are the costs during the period to produce, manufacture, and otherwise prepare the company’s products for sale – including energy costs, staffing, maintenance, and other costs to explore for and produce oil and gas and operate refining and chemical plants. Distribution and marketing expenses are also included. Operating costs exclude the cost of raw materials, taxes, interest expense and separately reported merger-related expenses. These expenses are on a before-tax basis. While ExxonMobil’s management is responsible for all revenue and expense elements of net income, operating costs, as defined below, represent the expenses most directly under management’s control. Information regarding these costs is therefore useful for investors and ExxonMobil management in evaluating management’s performance. In 2003, cost increases associated with higher energy prices, adverse foreign exchange impacts, new operations, and increased pension-related expenses were partly offset by efficiency initiatives captured in all business lines.

Reconciliation of operating costs


(millions of dollars)	2003		2002		2001
From ExxonMobil’s Consolidated Statement of Income
Total costs and other deductions	$	214,772	$	186,996	$	188,815
Less:
Crude oil and product purchases		107,658		90,950		92,257
Merger related expenses		—		410		748
Interest expense		207		398		293
Excise taxes		23,855		22,040		21,907
Other taxes and duties		37,645		33,572		33,377
Income applicable to minority and preferred interests		694		209		569

Subtotal		44,713		39,417		39,664
ExxonMobil’s share of equity company expenses		3,937		3,800		3,832

Total operating costs excluding merger expenses	$	48,650	$	43,217	$	43,496

Components of operating costs


(millions of dollars)	2003		2002		2001
From ExxonMobil’s Consolidated Statement of Income
Production and manufacturing expenses	$	21,260	$	17,831	$	17,743
Selling, general and administrative expenses		13,396		12,356		12,898
Depreciation and depletion		9,047		8,310		7,848
Exploration expenses, including dry holes		1,010		920		1,175

Subtotal		44,713		39,417		39,664
ExxonMobil’s share of equity company expenses		3,937		3,800		3,832

Total operating costs excluding merger expenses	$	48,650	$	43,217	$	43,496

Frequently Used Terms 86 Exxon Mobil Corporation

Cash Flow from Operations and Asset Sales

Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds from sales of subsidiaries, investments, and property, plant, and equipment from the Consolidated Statement of Cash Flows. This cash flow is the total sources of cash from both operating the company’s assets and from the divesting of assets. The Corporation employs a long-standing disciplined regular review process to ensure that all assets are contributing to the company’s strategic and financial objectives. Assets are divested when they are no longer meeting these objectives or are worth considerably more to others. Because of the regular nature of this activity, we believe it is useful for investors to consider sales proceeds together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales


(millions of dollars)	2003		2002		2001
Net cash provided by operating activities	$	28,498	$	21,268	$	22,889
Sales of subsidiaries, investments, and property, plant, and equipment		2,290		2,793		1,078

Cash flow from operations and asset sales	$	30,788	$	24,061	$	23,967

Capital Employed

Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the businesses, it includes ExxonMobil’s net share of property, plant, and equipment, and other assets less liabilities, excluding both short-term and long-term debt. When viewed from the perspective of the sources of capital employed in total for the Corporation, it includes ExxonMobil’s share of total debt and shareholders’ equity. Both of these views include ExxonMobil’s share of amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive measure of capital employed.

Capital employed


(millions of dollars)	2003			2002			2001
Business uses: asset and liability perspective
Total assets	$	174,278		$	152,644		$	143,174
Less liabilities and minority share of assets and liabilities
Total current liabilities excluding notes and loans payable		(33,597	)		(29,082	)		(26,411	)
Total long-term liabilities excluding long-term debt and equity of minority and preferred shareholders in affiliated companies		(37,839	)		(35,449	)		(29,975	)
Minority share of assets and liabilities		(4,945	)		(4,210	)		(3,985	)
Add ExxonMobil share of debt-financed equity company net assets		4,151			4,795			5,182

Total capital employed	$	102,048		$	88,698		$	87,985

Total corporate sources: debt and equity perspective
Notes and loans payable	$	4,789		$	4,093		$	3,703
Long-term debt		4,756			6,655			7,099
Shareholders’ equity		89,915			74,597			73,161
Less minority share of total debt		(1,563	)		(1,442	)		(1,160	)
Add ExxonMobil share of equity company debt		4,151			4,795			5,182

Total capital employed	$	102,048		$	88,698		$	87,985

Return on Average Capital Employed

Return on average capital employed (ROCE) is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment capital employed (average of beginning- and end-of-year amounts). These segment earnings include ExxonMobil’s share of segment earnings of equity companies, consistent with our capital employed definition, and exclude the cost of financing. The Corporation’s total ROCE is net income excluding the after-tax cost of financing, divided by total corporate average capital employed. The Corporation has consistently applied its ROCE definition for many years and views it as the best measure of historical capital productivity in our capital-intensive long-term industry, both to evaluate management’s performance and to demonstrate to shareholders that capital has been used wisely over the long term. Additional measures, which tend to be more cash flow based, are used for future investment decisions.

Exxon Mobil Corporation 87 Frequently Used Terms

Frequently Used Terms (continued)

Return on average capital employed


(millions of dollars)	2003			2002			2001
Net income	$	21,510		$	11,460		$	15,320
Financing costs (after-tax)
Third-party debt		(69	)		(81	)		(96	)
ExxonMobil share of equity companies		(172	)		(227	)		(229	)
All other financing costs – net⁽¹⁾		1,775			(127	)		(25	)

Total financing costs		1,534			(435	)		(350	)

Earnings excluding financing costs	$	19,976		$	11,895		$	15,670

Average capital employed⁽²⁾	$	95,373		$	88,342		$	88,000
Return on average capital employed – Corporate total⁽²⁾		20.9	%		13.5	%		17.8	%

(1)		“All other financing costs – net” in 2003 includes interest income (after-tax) associated with the settlement of a U.S. tax dispute.

(2)		Tables showing average capital employed and return on average capital employed by business segment are on page 11 of this document.

Shareholder Return

Shareholder return measures the change in value of an investment in stock over a specified period of time, assuming dividend reinvestment. We calculate shareholder return over a particular measurement period by dividing (1) the sum of (a) the cumulative value of dividends received during the measurement period, assuming reinvestment, plus (b) the difference between the stock price at the end and at the beginning of the measurement period; by (2) the stock price at the beginning of the measurement period. For this purpose, we assume dividends are reinvested in stock at market prices at approximately the same time actual dividends are paid. Shareholder return is usually quoted on an annualized basis.

Dividend, Share Purchase, and Total Yield

Dividend yield represents the portion of the value of an investment at the beginning of a period that is received through a cash dividend during the period. For example, a stock worth $100 at the beginning of the year that pays a single $2 cash dividend during the year has a dividend yield of 2 percent.

The company also distributes cash to shareholders through share purchases. We define share purchase yield as the ratio of aggregate spending for share purchases (excluding spending to offset share issuance under benefit plans) during a period divided by aggregate market value of the stock at the beginning of the period. For example, a company with 10 shares outstanding at the beginning of the year priced at $100 per share that purchases $30 worth of stock during the year has a share purchase yield of 3 percent.

Total yield is the sum of the dividend and share purchase yields. A non-selling shareholder receives only a dividend yield but holds a proportionately larger interest in the company as total shares outstanding are reduced.

Cash returned to shareholders


(millions of dollars)	2003		2002		2001
Cash dividends	$	6,515	$	6,217	$	6,254
Share purchases⁽¹⁾		5,003		4,087		5,001

Total	$	11,518	$	10,304	$	11,255

Dividend, share purchase and total yield

(percent)

2003

2002

2001

Dividend

2.8

2.3

2.1

Share purchase⁽¹⁾

2.1

1.5

1.6

Total

4.9

3.8

3.7

(1)

Excludes spending to offset share issuance under benefit plans.

Production Capacity

Amount of production that can be sustained considering normal downtime assumptions, based on historical experience. Production capacity is normally limited by either well capacity or facilities capacity, depending on the physical setup. It does not take into account unforeseen events that can impact actual production volumes such as abnormal downtime, OPEC quotas, weather patterns, natural disasters, or civil unrest.

Frequently Used Terms 88 Exxon Mobil Corporation

Finding and Development Costs

Finding and development (F&D) costs per oil-equivalent barrel is a performance measure ratio. F&D costs per barrel are costs incurred in property acquisition and exploration (finding), plus costs incurred in development activities divided by proved oil-equivalent reserves additions, excluding sales. Both the costs incurred and the proved reserves additions include amounts applicable to equity companies as well as Canadian tar sands operations. We also refer to F&D costs as replacement costs.

Replacement Costs

See Finding and Development Costs, above.

Liquids and Natural Gas Reserves and Resources

Proved oil and gas reserves are the estimated quantities of crude oil, natural gas, and natural gas liquids that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. In some cases, substantial new investments in additional wells and related facilities will be required to recover these proved reserves. Proved reserves include 100 percent of each majority-owned affiliate’s participation in proved reserves and ExxonMobil’s ownership percentage of the proved reserves of equity companies, but exclude royalties and quantities due others. To more accurately represent ExxonMobil’s total proved liquids reserves, tar sands reserves associated with the Syncrude operation in Canada are included in all documents other than SEC filings. Gas reserves exclude the gaseous equivalent of liquids expected to be removed from the gas on leases, at field facilities, and at gas processing plants. These liquids are included in net proved reserves of crude oil and natural gas liquids. Net proved developed reserves are those volumes that are expected to be recovered through existing wells with existing equipment and operating methods. Undeveloped reserves are those volumes that are expected to be recovered as a result of future investments to drill new wells, to recomplete existing wells, and/or to install facilities to collect and deliver the production from existing and future wells.

Resources, Resource Base, and Recoverable Resources

Resources, resource base, recoverable oil, recoverable hydrocarbons, recoverable resources, and similar terms used in this report include quantities of oil and gas that are not yet classified as proved reserves, but which ExxonMobil believes will likely be moved into the proved reserves category and be produced in the future.

Capital and Exploration Expenditures

Capital and exploration expenditures (capex) are the combined total of additions at cost to property, plant, and equipment and exploration expenses on a before-tax basis from the Consolidated Statement of Income. ExxonMobil’s capex includes its share of similar costs for equity companies. Capex excludes depreciation on the cost of exploration support equipment and facilities recorded to property, plant, and equipment when acquired. While ExxonMobil’s management is responsible for all investments and elements of net income, particular focus is placed on managing the controllable aspects of this group of expenditures.

Volatility

Volatility (of total returns) quantifies the risk borne by an investor holding the stock. Volatility is a measure of the average dispersion of returns about their mean value over a period of time. It is calculated as the standard deviation of monthly returns and is typically quoted on an annualized basis.

Fixed Charge Coverage Ratios

The fixed charge coverage ratio, defined by the Securities and Exchange Commission and detailed in Form 10-K, measures the number of times fixed financing charges for the year are covered by available pre-tax earnings (before financing charges) for that year. The ratio is calculated by dividing available pre-tax earnings before financing charges by fixed financial charges for the year. The net fixed charge coverage ratio eliminates interest income from the numerator (available earnings) and reduces the denominator (fixed charges) by an equivalent amount. This calculation is consistent with using all available cash balances to reduce debt outstanding as is done for our net debt to capital ratio to provide a more complete view of our financial strength.

Frequently Used Terms 89 Exxon Mobil Corporation

INDEX


Africa		40-44
Annuity plans		9
Asia-Pacific		50-51
Asset sales		87
Balance sheet		13
Capital expenditures		2, 16-17, 25, 63, 79, 89
Capital employed		2, 11, 25, 53, 63, 79, 87
Cash flow		2, 15, 87
Cash flow statement		15
Cash returned to shareholders		88
Caspian Region		48-49
Chemical		78-85
Chemical manufacturing locations		85
Chemical products		83
Chemical technology		22-23
Chemical volumes and revenues		84
Coal		3, 19, 53
Cogeneration facilities		19, 31, 39, 53, 66, 74, 82
Competitive performance	IFC, 6, 8, 19, 80
Corporate		1-17
Depreciation and depletion expenses		12
Discontinued operations		86, 87
Dividend information		2, 9, 15, 88
Downstream		62-77
Downstream technology		22-23
Earnings		9, 10, 15, 25, 60-61, 63, 79, 86
Efficiencies		8, 27, 63, 66, 68, 71, 81
Employees		8
Europe		36-39
Exploration and production earnings		60-61
Finding and development costs		29, 59, 89
Financial highlights and ratios		2
Financial statements		10-17
Fixed charge coverage ratio		2, 89
Frequently Used Terms		86-89


Fuels marketing			68-69
Global Climate and Energy Project			19
Income statement			14
Industry outlook			3-5
Liquids and natural gas production volumes			54-55
Lubricants and specialties			70-71
Market valuation			2
Merger expenses			10, 86
Middle East			45-47
North America			32-35
Operating costs			12, 60-61, 86
Petroleum product sales			63, 76-77
Power			53
Production capacity			1, 88
Property, plant, and equipment			12, 15
Proved liquids and natural gas reserves			57-59, 89
Proved reserves replacement			25, 29, 58-59, 89
Refinery throughput, capacity, and utilization			72
Refining and supply			64-67
Replacement costs			29, 59, 89
Reserves			28, 29, 57-59, 89
Resources			5, 25, 28, 29, 89
Retail sites			73
Return on average capital employed			2, 11, 25, 63, 79, 87-88
Russia			47
Safety, Health & Environment			18-19
Share purchases			8, 88
Shareholder return			2, 8, 88
South America			52
Special items			10, 86
Technology			20-23
Upstream			24-61
Upstream project summary			30
Upstream technology			20-21
Volatility			8, 89

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Esso, and Mobil. For convenience and simplicity, terms like Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations and global or regional business lines are also sometimes used for convenience and simplicity. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. Words like venture, joint venture, partnership, co-venturer, and partner are used to indicate business relationships involving common activities and interests, and those words may not indicate precise legal relationships.

The following terms are trademarks, service marks, or proprietary-process names of Exxon Mobil Corporation or its affiliates: Achieve, Esso, Exceed, Exxon, ExxonMobil, Exxpol, GO-fining, Hydrofining, Mobil, Mobil 1, On the Run, SCANfining, Signum, Speedpass, Stellar, SuperSyn, Synesstic, Visom, Vistamaxx, and XyMax.

The following third-party trademarks or service marks, referenced in the text of this report, are owned by the entities indicated: Cadillac and Corvette (General Motors Corporation), Lancer (Mitsubishi Motors North America Inc.), MasterCard (MasterCard International, Inc.), McLaren (McLaren North America Inc.), Mercedes-Benz (DaimlerChrysler AG), NASCAR (National Association for Stock Car Racing Inc.), Porsche (Dr. Ing, h.c. F. Porsche AG), 7-Eleven (7-Eleven, Inc.), Tesco Express (Tesco Stores Limited), Tim Hortons (TDL Group Limited), and Upromise (Upromise, Inc.).

Index 90 Exxon Mobil Corporation


2003 Financial & Operating Review		Taking on the world’s toughest energy challenges.^TM

•		Upholding the highest ethical standards and business integrity

•		Ensuring safe, environmentally-sound operations

•		Capturing quality investment opportunities while maintaining a selective and disciplined approach

•		Executing operational excellence in all aspects of our businesses

•		Developing and employing cutting-edge proprietary technology

•		Achieving leadership positions in each of our core businesses

•		Optimizing financial performance through geographic and functional portfolio diversity and integration

•		Maintaining a strong financial position to allow for the pursuit of all profitable opportunities

•		Attracting and retaining an exceptionally qualified and highly motivated workforce

•		Leveraging efficiency gains through our Global Functional Organization

•		Record low safety incidents

•		Record earnings — highest in the history of the Corporation

•		Industry-leading return on capital employed of 21 percent

•		Proved reserves additions replaced 105 percent of production

•		Oil-equivalent production capacity increased 1 percent

•		16 Upstream projects started up in 2003, with a combined targeted gross daily peak production of 1.2 million barrels of oil per day and 1.3 billion cubic feet per day of natural gas

•		Key resource additions from Qatar, Angola, Canada, Nigeria, Brazil, Kazakhstan, and the United States

•		Downstream operating cost, efficiency gains, and revenue enhancements in excess of $1.5 billion

•		Chemical prime product sales equivalent to last year’s record level

•		Annual dividend payments increased for the 21st consecutive year

•		$11.5 billion returned to shareholders through dividends and share purchases

•		World GDP grew about 2.5 percent in 2003, versus 2.0 percent in 2002.

•		World oil demand increased by about 1.4 million barrels per day in 2003. World natural gas consumption increased by about 6 billion cubic feet per day in 2003.

•		Brent oil prices averaged almost $29 per barrel in 2003, up about $4 per barrel versus 2002.

•		Natural gas prices in the United States were volatile, but on average were 74 percent higher versus 2002. In Europe, natural gas prices were up 23 percent versus 2002, and up 7 percent excluding foreign exchange effects.

•		2003 industry refining margins throughout the world improved versus 2002 and were particularly strong during the first half of 2003. The stronger margins reflected many crude oil and finished product market factors, including stronger product demand in the U.S.and elsewhere.

•		Worldwide industry chemical demand grew 3 percent during 2003, primarily driven by growth in Asia.

(1)		See Frequently Used Terms.

(2)		Debt includes short- and long-term debt. Capital includes short- and long-term debt, shareholders’ equity, and minority interests.

(3)		Current liabilities include short-term debt (notes and loans payable).

•		Coal will grow, driven by strong demand in China and India and continued growth in the U.S.

•		Hydropower and nuclear power will also grow, though public opposition and the lack of suitable sites will limit capacity.

•		ICE research is underway to better understand the complex interactions between the blend of molecules in gasoline or diesel fuel and an engine. This research will help optimize future fuel/engine systems for higher efficiency and lower emissions.

•		A second path, called homogeneous charge compression ignition (HCCI), involves new combustion technologies that have attributes of both gasoline spark ignition and diesel compression ignition. Advances through research could lead to 30 percent better fuel efficiency as compared to current gasoline-fueled engines, and a significant reduction in smog-causing emissions and carbon dioxide.

•		Another promising extension of ICE technology is hybrid-vehicle technology. Hybrids use a gasoline engine for steady speeds and an electric motor for extra power during the more energy demanding phases of start-up and acceleration. In city driving, where this technology has major advantages, these vehicles deliver a fuel economy improvement of more than 50 percent. Models using this technology are on the road today.

•		Maximize profitability of existing oil and gas production

•		Identify and pursue all attractive exploration opportunities

•		Invest in projects that deliver superior returns

•		Capitalize on growing natural gas and power markets

•		Includes 100 percent of majority-owned affiliates’ proved reserves.

•		Includes ExxonMobil’s percentage ownership of equity company proved reserves.

•		Condensate is included in crude oil reserves.

•		Can only consider price changes provided for by existing contracts.

•		Can assume substantial new investment will be required.

n	=	ExxonMobil Operated

t	=	Joint Operation

l	=	Operated by Others

*		Under negotiation.

**		Not yet determined.

•		Identify, develop, and capture markets to support the growth of equity natural gas volumes

•		Maximize the value of natural gas, natural gas liquids, helium, CO₂, power sales, and assets

•		Minimize delivered cost of natural gas, natural gas liquids, and power

•		28 percent increase in cogeneration capacity currently under construction (over 800 megawatts)

•		Refurbishment of the Castle Peak coal-fired plant ongoing and construction of Black Point units 7 and 8 underway

•		Continued improvement in operating performance

•		*Maintain best-in-class operations, in all respects*

•		*Provide quality, valued products and services to our customers*

•		*Lead industry in efficiency and effectiveness*

•		*Capitalize on integration with other ExxonMobil businesses*

•		*Selectively invest for resilient, advantaged returns*

•		*Maximize value from leading-edge technology*

•		Across the Downstream business, the industry continues to experience significant volatility in margins. While margins recovered in 2003 versus 2002, we continue to see a downward long-term trend. Productivity gains derived from advancements in technology and operational efficiencies continue to take costs out of running the business, maintaining the downward pressure on industry margins.

•		2003 industry refining margins throughout the world improved versus 2002 and were particularly strong during the first half of 2003. The stronger margins reflected many crude oil and finished product market factors, including stronger product demand in the United States and elsewhere.

•		Fuels Marketing margins were stronger in all regions, primarily due to the lag effect related to lower crude prices early in the year.

•		Worldwide lube basestock margins were higher in 2003, reflecting tighter supply and demand fundamentals.

	•		The Exxon, Mobil, and Esso brands are well recognized and respected throughout the world and are valued by customers for superior quality, performance, and reliability.

	•		Our global functional organization enables better prioritization and more rapid deployment of new technologies, while fully leveraging best practices and cost efficiencies across the Downstream businesses.

	•		The development and application of proprietary technology are key to ExxonMobil’s sustained competitive advantage. The competitive strength resulting from our in-house technical capability is enhanced through close cooperation between the technology and business organizations. This alignment of research priorities results in timely and cost-effective solutions to the highest-value business opportunities.

	•		The ability to fully leverage the world-class scale and integration of our global operations represents a key advantage for ExxonMobil. The rapid dissemination and application of knowledge gained in an individual operation to the rest of the global portfolio is one example of this advantage.

•		In 2003, our initiatives reduced ongoing operating costs in Fuels Marketing by $245 million pre-tax.

•		In the highly competitive retail business, disciplined execution of retail site operating best practices, systematically applied to our service stations across the world, drove down on-site operating costs, and increased earnings from convenience products and services. The improvements in profitability resulting from this approach are best demonstrated through reduction in a site’s “breakeven fuels margin.” This is the fuels margin required for a retail site to break even after netting against total site operating costs the non-fuels income at the site. With the combined effect of increased non-fuels income, disciplined management of operating costs, and higher average site volumes, we lower this margin. For example, at our U.S. company-operated sites, we have lowered this number by nearly 20 percent since 2000.

•		We use a focused market approach to retail investments to provide the foundation for building long-term value. This approach selects and prioritizes potential markets for investment through a rigorous, disciplined, and globally consistent market planning process.

•		In addition to making selective and disciplined retail investment decisions, we continue to high-grade our portfolio of retail sites around the world. Since 1999, our total retail chain has been reduced by 14 percent, while total fuels volumes have been maintained.

•		An important measure of efficiency in the retail business is market effectiveness, the ratio of the percentage of volume ExxonMobil sells in a market to the percentage of retail sites we have in that market. For industry across a given market the ratio is 1.0. For those markets where we have fully seen the benefits of a focused market approach, our market effectiveness has improved dramatically and is 40 percent better than the industry.

•		Our popular On the Run convenience store format incorporates leading-edge technology and market research to provide value and convenience to our customers. In 2003, Fuels Marketing added 201 new On the Run stores worldwide, bringing the total to 1,000 in 41 countries and territories. In the U.S., ExxonMobil’s On the Run chain received the 2003 “Convenience Store Chain of the Year” award granted by Convenience Store Decisions magazine.

•		Strategic alliances with leading food or grocery marketers in selected markets can enhance our convenience store offering by leveraging the strength of our alliance partner’s distribution system or product brand value. Examples include our alliances with Tesco in the United Kingdom and Thailand, Doutor and 7-Eleven in Japan, Tim Hortons in Canada, and Innscor across Africa. In 2003, Fuels Marketing expanded its alliance offerings to over 600 sites around the world.

•		Innovative programs, including Speedpass and Upromise, create value and significantly increase customer loyalty. Speedpass users number more than 7 million customers in the U.S., Canada, Singapore, and Japan. Speedpass is accepted at over 10 thousand Exxon, Mobil, and Esso sites. ExxonMobil’s participation in the Upromise program — which helps families save for college — is unique in the industry. During 2003, Upromise membership increased to over 4 million participants in the United States. Research shows that the combined effect of these and other customer loyalty programs can increase ExxonMobil’s share of an average household’s monthly motor fuel purchases from 10 to nearly 90 percent.

•		Focus on businesses that capitalize on core competencies

•		Capture full benefits of integration across all ExxonMobil operations

•		Continuously reduce costs to achieve best-in-class performance

•		Invest selectively in internationally advantaged projects

•		Build proprietary technology positions

•		Demand in the established markets of North America remained relatively flat, with industrial production lagging the economic recovery.

•		European demand grew marginally.

•		Growth in Asia slowed at the beginning of the year and recovered sharply during the second half.

•		Challenged by historically high and volatile energy and feedstock costs, industry prices increased sharply compared to 2002.

•		On average, industry margins improved slightly.

•		Leading financial returns throughout the business cycle

•		$14 billion of capital employed

•		More than $25 billion in revenues

•		Leading manufacturing capabilities at highly integrated sites

•		Products marketed in more than 150 countries

•		One of the largest producers of olefins, the basic petrochemical building blocks.

•		Largest worldwide producer of polyolefins, including polyethylene, the largest-volume plastic, and polypropylene, one of the fastest growing and most versatile polymers.

•		Largest global producer of paraxylene and benzene. Paraxylene is one of the fastest growing petrochemicals and the main raw material for the manufacture of polyester fibers and polyethylene terephthalate (PET) recyclable bottles. Benzene is a primary building block for a broad array of products ranging from nylon to polystyrene.

•		Our recent investments in capacity additions in Saudi Arabia and Singapore allowed us to profitably increase our participation in high-growth markets such as China. The excellent performance of these sites provided major contributions to the earnings increase we accomplished in 2003.

•		Construction of the Baton Rouge metallocene ethylene elastomers plant was completed in 2003. This new, one of a kind facility, which will produce more than 90 thousand tons annually, uses ExxonMobil’s Exxpol metallocene catalyst and a proprietary manufacturing process to make next-generation elastomers. This facility further strengthens our position as a premier supplier of ethylene elastomers.

•		ExxonMobil Chemical’s films business completed an expansion of its manufacturing plant in Shawnee, Oklahoma. The installation of a new 6.6 meter orienter provides additional annual capacity of 15 thousand tons and helps us meet growing demand for white opaque films used in the packaging and labeling markets.

•		An expansion of the Fina-Antwerp Olefins steam crackers (ExxonMobil share, 35 percent) was completed in 2003. The project increases ExxonMobil’s share of ethylene produced at the complex by more than 50 thousand tons per year, or 11 percent.

•		Three new steam and power cogeneration facilities are being built at the Beaumont, Baytown, and Sarnia integrated refining and petrochemical sites. These new facilities will improve the reliability and increase the energy efficiency of the chemical plants at the complexes. Added benefits include reduced emissions of carbon dioxide, sulfur dioxide, and other gases.

•		The competitiveness of the Baytown olefins plant was further improved with the completion of a feed flexibility and efficiency project. In addition to a 24 thousand ton capacity increase, the project reduced energy consumption and increased the site’s ability to process advantaged feedstocks.

•		The company completed a project to increase the efficiency of the Baton Rouge, Louisiana, isopropyl alcohol plant. The project also resulted in a 10 percent capacity increase.

•		Implementation of our Global Enterprise Management System continued in 2003. This global information technology platform, which supports a broad range of business processes, strengthens our global operations and enables the implementation of common practices around the world in support of consistent service delivery to our global customers.

•		ExxonMobil continues to explore additional opportunities for advantaged growth in both established and developing markets of the world, including China and a potential joint-venture project for the production of petrochemicals in Venezuela.

•		In 2003, Tonen Chemical Company (ExxonMobil share, 50 percent) sold its 35 percent interest in Japan Polychem, a Japan-based polyolefins producer, to Mitsubishi Chemicals.

•		Our low-molecular-weight polyisobutylene business was sold to BASF.

•		Our synthetic polyester-based refrigeration lubricant business was sold to Estech Gmbh & Co., KG and Hatco Corporation.




		Additional copies may be obtained by writing or phoning:

		Exxon Mobil Corporation Investor Relations Post Office Box 140369 Irving, Texas 75014-0369

		Phone: 972-444-1157 Fax: 972-444-1505

		This and other ExxonMobil publications and information may be accessed via the Internet:

		www.exxonmobil.com