ExxonMobil to Increase Permian Profitability Through Digital Partnership with Microsoft

  • Permian application to generate billions of dollars in value over the
    next decade and drive capital efficiency
  • Potential to expand production by as much as 50,000 oil-equivalent
    barrels a day by 2025
  • Largest-ever oil and gas acreage to use cloud technology

IRVING, Texas–(BUSINESS WIRE)–ExxonMobil
said today a new partnership with Microsoft will make its Permian Basin
operations the largest-ever oil and gas acreage to use cloud technology
and is expected to generate billions in net cash flow over the next
decade through improvements in analyses and enhancements to operational
efficiencies.

The application of Microsoft technologies by ExxonMobil’s XTO Energy
subsidiary – including Dynamics 365, Azure, Machine Learning and
Internet of Things – is anticipated to improve capital efficiency and
support Permian production growth by as much as 50,000 oil-equivalent
barrels per day by 2025.

“The combination of Microsoft’s technologies with our unique strengths
in oilfield technologies, production efficiency and integration will
help drive growth in the Permian and serve as a model for additional
implementation across the U.S. and abroad,” said Staale Gjervik, senior
vice president, Permian Integrated Development for XTO. “The
unconventional business is fast moving, complex and data rich, which
makes it well suited for the application of digital technologies to
strengthen our operations and help deliver greater value.”

ExxonMobil’s partnership with Microsoft includes an integrated cloud
environment that securely and reliably collects real-time data from oil
field assets spanning hundreds of miles. The data will enable ExxonMobil
to make faster and better decisions on drilling optimization, well
completions and prioritization of personnel deployment. Importantly,
leak detection and repair response times could be further reduced with
enhanced access to emissions data, strengthening XTO’s voluntary
actions to manage methane emissions
.

ExxonMobil’s application of these technologies in its Permian Basin
acreage, which covers a 9.5 billion oil-equivalent barrel resource base
and more than 1.6 million acres, represents industry’s largest acreage
position using cloud technology.

Alysa Taylor, corporate vice president of Microsoft Business
Applications and Industry, said ExxonMobil is taking a leadership
approach in its digital strategy.

“ExxonMobil is leading the way for industry, grounding their goals in
making data-driven decisions that will result in safer operations for
their employees and more profitable activities for the company,” said
Taylor. “Our cloud infrastructure and business applications will
continue to support ExxonMobil as it fully realizes its strategy across
the Permian.”

Microsoft’s platforms, including Azure Data Lake, will enable ExxonMobil
to rapidly incorporate third-party solutions at scale across the
Permian. Examples include mobile field data apps to optimize well
performance, and AI algorithms for analyzing drilling and completions
data to improve performance.

With the additional layer of Microsoft’s intelligent business
applications, such as Dynamics 365, ExxonMobil and XTO will have a
complete, end-to-end view of the Permian operations.

“Digital technology is a fundamental enabler for our Permian
development,” said Gjervik. “Through our partnership with Microsoft,
we’re combining our technical and engineering expertise with cloud and
data analytics capabilities to develop the Permian resource in the most
capital-efficient manner. Collaboration with Microsoft is key to our
future development efforts, which include predictive maintenance
capacities, innovative tools for employees, and artificial intelligence
and machine learning integration.”

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products, and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement: Statements
of future events or conditions in this release are forward-looking
statements. Actual future results, including project plans and timing,
future production rates and cash flows, and the impact and results of
new technologies, including productivity and efficiency gains and
emission reductions, could vary depending on the outcome of further
research and testing; the development and competitiveness of alternative
technologies; the ability to scale pilot projects on a cost-effective
basis; technical and operating factors; and other factors discussed in
this release and under the heading “Factors Affecting Future Results” on
the Investors page of ExxonMobil’s website at exxonmobil.com. References
to oil equivalent barrels include quantities that are not yet classified
as proved reserves but that are expected ultimately to be moved to the
proved reserves category and produced in the future.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for
the era of an intelligent cloud and an intelligent edge. Its mission is
to empower every person and every organization on the planet to achieve
more.

Contacts

ExxonMobil Media Relations
(972) 940-6007

Microsoft Media Relations
(425) 638-7777

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