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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 17, 1996
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7555 13-2850309
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
3225 Gallows Road
Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
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Item 5. Other Events
The Registrant hereby incorporates by reference herein the
information set forth in its News Release dated May 16, 1996 a
copy of which is annexed hereto as exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99. Mobil Corporation News Release dated May 16,
1996 which announced that Mobil Corporation had
acquired its 25% interest in the Tengiz oil field
in the Republic of Kazakstan for $1.1 billion.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /s/ Gordon G. Garney
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE May 17, 1996
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
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99. Mobil Corporation, Electronic
News Release dated
May 16, 1996
Exhibit 99
CONTACT: Christopher Springham, +1 703 846 2500
MOBIL ANNOUNCES THE TERMS OF ITS
ACQUISITION OF A 25% INTEREST IN TENGIZ
FAIRFAX, VA., May 16, 1996 -- Mobil Corporation announced today
that it had acquired its 25% interest in the Tengiz oil field in
the Republic of Kazakstan for $1.1 billion. The terms provided
for an initial payment of $500 million, with the balance payable
in installments through the year 2000 contingent upon reaching
certain milestones in exports of Tengiz crude oil. As part of the
agreement, Mobil also obtained an option to acquire another
producing or exploration interest in Kazakstan. In addition,
Mobil has secured a Most Favored Nations clause.
Tengiz recoverable liquid resources are estimated to be at
least 6 billion barrels. With full development of this project,
Mobil would ultimately book reserves of 1.5 billion barrels,
reflecting its 25% share. The portion to be booked as additions
to proved reserves in 1996 will be disclosed later in the year.
Mobil's share of production from this project was reflected
as of May 10, 1996. Total production from Tengiz was 83 thousand
barrels per day (TBD) in the first quarter of 1996, and 100 TBD in
March. Production capacity is expected to reach 130 TBD by the
end of 1996 with completion of field facilities, and well over 200
TBD by the turn of the century. Peak production could ultimately
reach over 700 TBD (Mobil share close to 200 TBD). Mobil fully
supports the goals of the Republic of Kazakstan with respect to
the development of the field and pipeline capacity.
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Capital expenditures to fully develop the field are
expected to be essentially covered by operating cash flow. The
project, which already has modern infrastructure and easily
expandable production facilities in place, provides attractive
economics that meet Mobil's criteria, even at the company's crude
price forecast of $17 per barrel real Brent. Some income from
Tengiz will be booked in 1996, growing to about $100 million
annually around the turn of the century and more than $500 million
with full field development.
Lucio A. Noto, Mobil's Chairman and Chief Executive
Officer, said that "Mobil is delighted to have obtained 25% of the
Tengiz field given that there was substantial competition from
other major companies. The Tengiz project has made considerable
progress over the past several years, and it has world-class
resources which will contribute significantly to Mobil's goal to
profitably grow production and reserves. It builds on the
substantial position which Mobil already has in Kazakstan with its
ventures in the Caspian Sea and Tulpar, and also affords us
additional opportunities." said Noto.
"The timing for entry is favorable, as a recently ratified
protocol, which Mobil helped advance, provides us with a 7.5%
equity interest in the restructured Caspian Pipeline Consortium.
Mobil's capacity entitlement (11.2%) will essentially cover its
share of Tengiz production and we expect to obtain a reasonable
return on the pipeline investment," he said.
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