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SEC Info - Mobil Corp - 10-K - For 12/31/94 - EX-13   SEC Info     Home     Search     My Interests     Help     Sign In     Please Sign In   Mobil Corp · 10-K · For 12/31/94 · EX-13 Filed On 3/13/95   ·   SEC File 1-07555   ·   Accession Number 67182-95-10   in  this filing. an "object" Search.   Show  docs searched  and  the 1st "hit". every "hit". As Of Filer Filing On/For/As Docs:Pgs 3/13/95 Mobil Corp 10-K 12/31/94 9:109 Annual Report   ·   Form 10-KFiling Table of Contents Document/Exhibit Description Pages Size 1: 10-K Annual Report 25 137K 2: EX-11 Statement re: Computation of Earnings Per Share 2± 11K 3: EX-12 Statement re: Computation of Ratios 2± 8K 4: EX-13 Annual or Quarterly Report to Security Holders 70 470K 5: EX-21 Subsidiaries of the Registrant 3 21K 6: EX-23 Consent of Experts or Counsel 1 9K 7: EX-24 Power of Attorney 2± 12K 8: EX-24 Power of Attorney 2 6K 9: EX-27 Financial Data Schedule 2± 9K EX-13   ·   Annual or Quarterly Report to Security HoldersExhibit Table of Contents Page (sequential) | (alphabetic) Top  Alternative Formats (RTF, XML, et al.) Consolidated Financial Statements Environment, The Exploration & Producing Letter to Shareholders Management Discussion and Analysis Marketing & Refining Notes to Financial Statements Shareholder Information Supplementary Information The Environment Vision, Mission, Values Vmv 11st Page 2Letter to Shareholders 8Vision, Mission, Values "Vmv 10Exploration & Producing 18Marketing & Refining 26The Environment 28Management Discussion and Analysis 39Consolidated Financial Statements 46Notes to Financial Statements 60Supplementary Information 68Shareholder Information EX-131st Page of 70TOCTopPreviousNextBottomJust 1st TABLE OF CONTENTS Letter to Shareholders...............................................1 Vision, Mission, Values..............................................4 Exploration & Producing..............................................5 Marketing & Refining.................................................9 Chemical and Other Businesses.......................................13 The Environment.....................................................16 Financial Section Financial Highlights................................................17 Management Discussion and Analysis..................................18 Consolidated Financial Statements...................................29 Notes to Financial Statements.......................................36 Reports of Management and Independent Auditors......................49 Supplementary Information...........................................50 Shareholder Information.............................................58 Directors and Officers..............................................59 An important part of the domestic and foreign operations covered by this report is carried on by operating divisions, subsidiaries and affiliates conducting their respective businesses under the direction and control of their own managements. Except as otherwise indicated by the context, this report uses such terms as "Mobil," "corporation," "company," "we" and "our," sometimes for the parent corporation and all such divisions, subsidiaries and affiliates collectively, and sometimes for one or more of them. Mobil Annual Report is printed on recycled and recyclable paper. · Enlarge/Download Table Financial Highlights 1993 1994 % Change -------------------------------------------------------------------------------------------------- Income before change in accounting principle (millions) $2,084 $1,759 (16) Per common share (based on average shares outstanding) 5.07 4.28 (16) -------------------------------------------------------------------------------------------------- Net income(1)(millions) $2,084 $1,079 (48) Per common share (based on average shares outstanding) 5.07 2.57 (49) -------------------------------------------------------------------------------------------------- Return on average shareholders' equity(2) 12.3% 10.4% - Return on average capital employed(2) 9.7% 8.4% - Income per dollar of revenue(2) 3.3 cents 2.6 cents (21) Petroleum earnings per gallon sold 3.9 cents 3.1 cents (21) -------------------------------------------------------------------------------------------------- Revenues (millions) $63,975 $67,383 5 Total assets, year-end(3)(millions) 40,733 41,542 2 Capital and exploration expenditures (millions) 3,656 3,825 5 Shareholders' equity, year-end (millions) 17,237 17,146 (1) Per common share (based on shares outstanding at year-end) 42.74 42.61 - -------------------------------------------------------------------------------------------------- Common shares outstanding, year-end (thousands) 398,168 395,987 (1) Shareholders of common stock, year-end 200,100 193,900 (3) Number of employees, year-end 61,900 58,500 (5) -------------------------------------------------------------------------------------------------- (1) After 1994 charge of $680 million for change in accounting principle. (2) Based on income before 1994 change in accounting principle. (3) 1993 data reclassified to conform with current year presentation. Annual Dividends (per share of common stock, in dollars) EX-132nd Page of 70TOC1stPreviousNextBottomJust 2nd LETTER TO SHAREHOLDERS You can be proud of the strong performance turned in by Mobil people around the world in 1994. We met the challenge of weak business conditions. Operating income of more than $2.2 billion rose slightly from 1993. The big negatives our people faced were: worldwide crude oil prices around $1 a barrel lower than 1993, U.S. natural-gas prices down by more than 30 cents a thousand cubic feet, and refinery margins down some 30%. In terms of business conditions, the only bright spots were a substantial improvement in chemical industry fundamentals and better international petroleum marketing margins. Overall, business factors lowered 1994 income by more than $500 million after taxes. The big bright spot was how we performed-how we met our customers' needs better and more efficiently. Worldwide, we raised our oil and gas production by 2% and petroleum product sales by 5%. At the same time that volumes were up, we brought costs down. We reduced controllable cash operating expenses by more than $250 million before taxes in 1994. That's on top of a reduction of $575 million during the previous two years. Over the same three-year period, we were also able to offset more than $1 billion in higher costs that arose from inflation and volume growth. And headcount was down by 9,000, or 13%, including 3,400 in 1994. Meanwhile, our competition is not standing still, and we're not through. We'll always be working to improve efficiency and adapt to changes in the business environment as well as new developments in technology. A major study of how we supply staff support services worldwide is on schedule for recommendations this spring and implementation by the end of the year. While we strive to run our businesses better and smarter, we'll maintain our focus on growth and on valuing our people. Our goal is to improve earnings and position the company for future growth-not merely to cut expenses. Last year was the seventh straight year that our shareholders saw an increase in their annual dividend, which rose to $3.40. The total return to Mobil shareholders in 1994 -- dividends plus stock-price appreciation -- was 11%. That compares with an 8% average for our major competitors and 1% for the Standard & Poor's 500. Over the last five years, our return has also been 11% a year, compared with 8% for our competitors and 9% for the S&P. With our eye on attractive growth opportunities around the world, we plan to increase our capital and exploration expenditures from $3.8 billion in 1994 to $4.1 billion for 1995. We remain flexible, and the budget can be revised to fit unusual opportunities or changes in the business environment. The international area accounts for an increasing share of our spending. We'll also keep working to get more out of our EX-133rd Page of 70TOC1stPreviousNextBottomJust 3rd existing assets, and to sell those that are marginal or worth a lot more to someone else. While optimistic that we'll see some improvement from the weak business conditions prevailing in 1994, we're not counting on improved conditions to grow our earnings. We judge future projects on today's market conditions. If they don't measure up, we don't invest the money. By continuing with our programs to restructure, reduce costs, improve operating efficiencies and invest for growth, we expect to achieve substantial improvements. We've set a target of increasing our return on capital employed by the end of 1998 to 12% from a little over 10%, based on operating earnings, in 1994. That means earnings in excess of $3 billion. To help keep the company focused on our goals, we've developed a statement of Vision, Mission and Values (reprinted on Page 4), and we're formulating key performance Lucio A. Noto Mobil 1 EX-134th Page of 70TOC1stPreviousNextBottomJust 4th LETTER TO SHAREHOLDERS Our people will continue to meet the challenge. We'll build on our strengths, deal with our weaknesses, and enter new markets and countries that promise good opportunities for growth. indicators to measure our progress. Our compensation will be consistent with these measurements. Although we must increase our efficiency by downsizing to stay competitive, people remain our greatest strength. One thing that makes us so strong is the diversity of our work force. We've rededicated ourselves to fostering that diversity. We're removing from our workplaces any impediments that may still stand in the way of fully utilizing the strengths of all our employees, and we're redoubling our efforts to achieve greater internationalization at all levels of management. Each of our business segments performed well in 1994: In Exploration & Producing, our production levels increased again as we set records in the U.K. and Nigeria and brought several new fields on stream. Plus we were able to replace 117% of our production with new proved reserves, excluding purchases and sales. Our long-term target is to increase production at about the 2% pace of recent years and replace at least 100% of production. Development projects now under way in Canada, Nigeria, Qatar and other countries should allow us to accomplish this. And we will continue to build on our leadership position in liquefied natural gas. In Marketing & Refining, many of our refineries set production records, and our sales grew. A wide range of business initiatives are blunting the impact of poor refining margins. By year-end we had achieved the changeover to cleaner-burning reformulated gasoline for more than 50% of our U.S. sales. We're making investments for growth-in EX-135th Page of 70TOC1stPreviousNextBottomJust 5th the lubricants business, for example, and in the emerging Asia-Pacific region and Latin America. At the same time, we are reviewing the performance of some of our assets in more-mature markets in the U.S. and Europe. It was the best year since 1990 for Mobil Chemical's operating income. Margins improved, especially for petrochemicals. All our chemical businesses showed early benefits from ongoing re-engineering programs. We've begun plans to build a paraxylene plant in Texas and expand ones in Singapore and Louisiana, doubling our capacity to make this key building block in the manufacture of polyester. Both Marketing & Refining and Mobil Chemical were helped by the new refinery units and aromatics complex at our manufacturing facility in Singapore. Just a few months after the aromatics plant was brought on stream early in the year, it was functioning beyond design capacity, turning out paraxylene and other intermediate products to meet the fast- · Enlarge/Download Table Earnings (Millions of dollars) 1993 1994 Change ----------------------------------------------------------------------------------------------- Petroleum Upstream $1,530 $1,324 $ (206) Downstream 1,088 964 (124) Chemical 44 224 180 Corporate and Other (139) (72) 67 Net Financing Expense (299) (209) 90 ----------------------------------------------------------------------------------------------- Operating income $2,224 $2,231 $ 7 ----------------------------------------------------------------------------------------------- Special items $ (140) $ (472) $ (332) ----------------------------------------------------------------------------------------------- Income Before Change in Accounting Principle $2,084 $1,759 $ (325) ----------------------------------------------------------------------------------------------- Cumulative Effect of Change in Accounting Principle(1) - $( 680) $ (680) ----------------------------------------------------------------------------------------------- Net income $2,084 $1,079 $(1,005) ----------------------------------------------------------------------------------------------- (1) Reflects adoption effective January 1, 1994, of a change in the accounting method used to apply the lower of cost or market test for crude oil and product inventories. Mobil 2 EX-136th Page of 70TOC1stPreviousNextBottomJust 6th LETTER TO SHAREHOLDERS MOBIL AT A GLANCE What we do: Mobil Corporation is a major oil, gas and petrochemical company with operations in more than 100 countries. Our other businesses include plastics, mining and land development. Major strengths: An international company for over a century, our people, our asset base, our worldwide presence, our financial flexibility and our technology have helped us build shareholder value and maintain a steadily rising dividend. We have a solid, growing customer base and a record of environmental excellence. How we did in '94: Our operating earnings were flat with 1993 despite a drop in crude-oil prices, U.S. natural-gas prices and worldwide refinery margins. Earnings were helped by improved chemical and international marketing margins, expense reductions, higher sales and new investments coming on stream. What's ahead: Growth opportunities, cost reductions and restructurings will continue to strengthen Mobil. Investing is increasing, particularly in the international area. EX-137th Page of 70TOC1stPreviousNextBottomJust 7th growing demand in the region for plastic fibers. So we have many reasons to feel good about our future. The world needs oil and natural gas. Oil demand is growing, particularly in the Pacific Rim, where Mobil is the most leveraged among the majors, with more than 30% of our worldwide refining capacity. Natural-gas demand is also growing, especially for liquefied natural gas, in which Mobil has a leading position. We have an expanding position in petrochemicals. And our 1994 results showed once again that our people will continue to meet the challenge. We'll build on our strengths, deal with our weaknesses, and enter new markets and countries that promise good opportunities for growth. During 1994 we said goodbye to two directors. Allen E. Murray retired after 41 years, the last eight as chairman, president and CEO. Robert G. Weeks, senior vice president and chief financial officer, retired after 40 years. We thank them both for their long and distinguished careers and the many successes they brought to Mobil. We're also grateful to William J. Kennedy III, who will be retiring at the end of April. He has served with excellence as a non-employee director since 1979. Our employees and board will work together to make Mobil a company that, in the words of our Vision statement, "sets the standard for excellence. A company that brings value to our customers, provides superior returns to our shareholders and respects the quality of life in every one of our communities." /S/LUCIO A. NOTO ---------------- Lucio A. Noto Chairman, President and Chief Executive Officer February 24, 1995 Mobil 3 EX-138th Page of 70TOC1stPreviousNextBottomJust 8th VISION, MISSION, VALUES VMV Vision, Mission and Values Our Vision: To be a GREAT, global company. A company, built with pride by all our people, that sets the standard for excellence. A company that brings value to our customers, provides superior returns to our shareholders and respects the quality of life in every one of our communities. Our Mission: To be a dynamic company that will continually find and develop opportunities for profitable growth in our core businesses, and that will realize the greatest value from our existing assets while keeping tight control of our costs. We Value: People To value, trust and empower all of our people to be mutually accountable for Mobil's success; to provide opportunities in a changing environment without boundaries, where each person can develop to be the best that he or she can be. Customers To understand and satisfy our customers' needs better than anyone and to offer products and services that provide them with the best value. Shareholders To reward our shareholders by providing a superior long-term total return, which exceeds that of our peers. Ethics To conduct our business to the highest ethical standards and in compliance with all applicable laws and regulations. Technology To develop or acquire and then rapidly apply appropriate technology to obtain and sustain competitive advantage. Environment, Health & Safety To protect the environment and the health EX-139th Page of 70TOC1stPreviousNextBottomJust 9th and safety of our people and the communities in which we work. Mobil 4 EX-1310th Page of 70TOC1stPreviousNextBottomJust 10th EXPLORATION & PRODUCING EXPLORATION & PRODUCING AT A GLANCE What we do: E&P searches for and produces oil and gas. Total proved reserves are 6.6 billion barrels of oil equivalent. Production is 1.7 million barrels a day. Gas accounts for roughly half of reserves and production. Major strengths: Advanced technologies and focused strategies have helped boost oil and gas production around the world. We've increased activities in emerging areas and continue to apply reservoir-management technologies to extract more from mature areas. How we did in '94: Operating earnings were down 13%, due to lower prices and higher exploration expense. Worldwide production rose 2%. We replaced 117% of production with proved reserves, excluding asset sales and purchases. The Griffin field in Australia, and Scott and Hudson fields in the U.K. were on stream for a full year. What's ahead: Replacement of reserves and new field developments in established areas such as the U.K., Nigeria, Qatar and Hibernia will increase near-term production. For the long term, exploration and producing ventures we are pursuing in Kazakhstan, Peru, Italy, Southeast Asia and other emerging areas could expand our reserve base and provide new production. The Hibernia project offshore Newfoundland took a big step forward when the lower section of the production platform was towed from dry-dock to its deepwater construction site. The platform, covering an area the size of two football fields, will be installed at its site, 200 miles southeast of St. John's, in 1997. Production will reach 125,000 barrels a day by 2000. Mobil 5 EX-1311th Page of 70TOC1stPreviousNextBottomJust 11th EXPLORATION & PRODUCING Exploration & Producing's 1994 operating earnings of $1.3 billion (U.S., $306 million; International, $1,018 million) were down $206 million, or 13%. Reduced operating expenses, reflecting the benefits of restructuring and continuous improvement initiatives, offset to some degree the lower worldwide crude and natural-gas prices and higher exploration expenses, the result of a more extensive drilling program. Our worldwide oil and gas production level increased in 1994 for the eighth time in the last 10 years, reaching a record of 1.7 million barrels of oil or its equivalent per day. This is up 2% from 1993 and 22% since 1985. We accomplished this in spite of asset sales and the natural decline of mature fields. Excluding purchases and sales, we added 117% of our production for the year to our proved reserves. Development projects now under way that will come on stream before 2000 will contribute about 600,000 barrels a day of new production. They will more than offset production declines in EX-1312th Page of 70TOC1stPreviousNextBottomJust 12th existing fields. We have developed strategies and tactics to help us extract as much value from our existing resource base as possible and to enable us to select new opportunities with the best chance of success. In addition to our worldwide experience, we offer potential partners and host countries a highly competitive portfolio of strengths in technology, capital formation, project management and environmental protection. As the political climate changes around the world, E&P is prepared to move quickly to evaluate and acquire interests in high-potential exploration and development projects in emerging areas. Mobil is active in many countries in areas such as the Pacific Rim, the Middle East, the former Soviet Union and South America that are emerging as important players in oil and gas exploration and development, having recently opened their borders to international oil companies. In the Asia/Pacific/Middle East region, work continues on several mega-projects: In Qatar, the continued development of the Qatargas project added the equivalent of 61 million barrels of proved reserves in 1994. Plans for the Qatargas venture (Mobil share 10%) expanded to three trains when an agreement was completed for the sale of an additional two million tons of liquefied natural gas (LNG) annually to supply seven Japanese gas and electric utilities. Engineering and construction of the first two trains are on schedule to begin LNG deliveries in 1997. The third train is due on stream in 1999. The Ras Laffan venture (Mobil share 30%) drilled its first North field appraisal well in early 1994. This well confirmed a prime block consisting of more than 35,000 acres for initial project development. Engineering for the design of the plant and field facilities was substantially completed in 1994. Deliveries from Ras Laffan are expected to begin around 2000. Collection of seismic data began in the northeastern Caspian Sea, where Mobil is the only U.S.-based company selected by the Kazakhstan government to participate in the exploration of the country's highly prospective and environmentally sensitive offshore area. We are involved in negotiations to secure exploration acreage onshore as well. In 1994, we were active in several of the joint ventures we entered in 1993. We began drilling a well in Vietnam and drilled an unsuccessful well in New Zealand. Seismic tests were conducted offshore Malaysia. In the Europe/Russia/Africa region, we acquired both new development and new exploration plays, and we evaluated existing licenses. We acquired new exploration areas in Egypt, Italy, Algeria and Equatorial Guinea, and In a first for Germany, Mobil combined horizontal drilling with a technique called "hydraulic fracturing" to recover gas economically from an extremely tight sandstone reservoir. Our operating people make effective use of technology to get more from the resource base. Mobil 6 EX-1313th Page of 70TOC1stPreviousNextBottomJust 13th EXPLORATION & PRODUCING In Nigeria, Mobil's equity production is expected to rise to more than 240,000 barrels a day by 1998. EX-1314th Page of 70TOC1stPreviousNextBottomJust 14th a potential development opportunity in Italy. The first wells in Egypt and Equatorial Guinea were unsuccessful. A well is currently drilling at a second location off Equatorial Guinea. Additionally, enormous exploration potential lies in the yet-to-be-drilled deep-water Nigerian acreage block we were awarded in 1993. Plans are to drill in the block in 1996. Our Americas region drilled two unsuccessful wildcat wells in the 2.5-million-acre Madre de Dios concession in northern Bolivia and one in Peru. Negotiations are also under way for exploration acreage adjacent to the large undeveloped Camisea gas and condensate discovery in Peru. Mobil opened a venture office in Caracas, Venezuela, and signed a letter of intent with Lagoven, an affiliate of the state oil company, to evaluate the feasibility of developing heavy crude in the Orinoco region. Internationally, we continued to invest in hydrocarbon reserves and production in mature areas with proven track records where the potential remains high. In Germany, the Netherlands, Norway, Nigeria and the U.K., we continued to add reserves. Internationally, Mobil replaced 152% of production with proved reserves. U.K. fields produced at a record rate in 1994, yet we replaced 111% of production with new reserves. The Excalibur field in the U.K. Southern Gas Basin was brought on stream in mid-1994. We increased our equity interest in the producing Pickerell field and had a successful appraisal drilling program in the Jupiter area. Ten new fields are due on stream by 1996, included among them Nevis South, Galahad, Ganymede/Callisto and Gawain. In the Norwegian North Sea, production started from the Statfjord East satellite field. Statfjord North, a second satellite to the giant Statfjord field, came on stream in early 1995. Development plans are being finalized for the giant Smorbukk field, scheduled to come on stream in 2000. Mobil began drilling on one of its awards from the 14th Norwegian licensing round and was preparing to test others. Mobil acquired an interest in the Njord field, where development will begin in 1995, with first production in 1997. In Western Europe, drilling in the Netherlands' North Friesland area added reserves totaling 136% of 1994 production. The offshore Netherlands is a maturing gas province with limited future potential. Mobil has reached tentative agreement to sell its P-Quad exploration and producing assets. In Germany, two development wells were drilled in the new Walsrode gas field. Overall, German reserve replacement was 177% of production in 1994. In Nigeria, where we are the second-largest producer, we reached a new equity production record of 175,000 barrels a day, a seventh straight year of record production. Production increases during 1994 were primarily from horizontal drilling in the Ubit field, development wells in the Enang field, regional workovers and optimization of producing practices. We initiated development of the Oso natural gas liquids recovery project. Work continued on expansion of production at Ubit, the Ekpe gas compression project and Edop field development. With these and other developments, Mobil's equity production is expected to rise to more than 240,000 barrels a day by 1998. In addition, Mobil had three exploration discoveries in 1994 in Nigeria. In Canada, the highlight of 1994 was the float-out of the gravity base structure for the Hibernia development project. This 615-million-barrel field off the coast of Newfoundland is scheduled for production start-up in 1997. In addition, Mobil and partners, along with a consortium of pipeline companies, are preparing plans to develop and bring Sable Island natural gas to markets in eastern Canada and the U.S. Northeast. Onshore, advanced technologies kept production in mature western Canadian fields near 1993 levels. In the Pacific Rim, full-year production from the Australian Griffin/Scindian/Chinook complex averaged 25,000 barrels of oil equivalent a day. We expanded our exploration activity to a total of 10 EX-1315th Page of 70TOC1stPreviousNextBottomJust 15th permits covering 8.1 million acres. Mobil relinquished its interest in The Ras Laffan LNG venture drilled its first appraisal well early in 1994, confirming a prime block consisting of over 35,000 acres. This venture, plus the Qatargas project, are expected to add more than a billion barrels of oil equivalent to our reserves and more than 125,000 barrels a day to our production over the years ahead. Mobil 7 EX-1316th Page of 70TOC1stPreviousNextBottomJust 16th EXPLORATION & PRODUCING Worldwide demand for LNG is expected to more than double in the next 15 years. Papua New Guinea when gas discovered failed to meet levels that would support development. Evaluation activities continue in Vietnam, including drilling the Blue Dragon prospect on acreage acquired in 1994. In the U.S., we continue to extract more from maturing assets, relying heavily on the increased use of sophisticated enhanced-recovery technologies and reservoir-management practices. Comparing 1994's results with 1993's, production held steady, with a slight decline in oil production offset by an increase in natural gas production. Production of California heavy oil set another record at 87,000 barrels a day and is projected to rise to 91,000 barrels a day in 1995. The increase in natural-gas production was led by the Mary Ann and Mobile Bay 823 fields offshore Alabama, which were up 15% to 140 million cubic feet a day. In the U.S., only 51% of hydrocarbons produced in 1994 were replaced with new proved reserves. Initiatives to reduce operating costs and divest nonstrategic assets continued in 1994, and 30 fields were sold. Mobil is continuing to reduce production costs, which have declined 21% since 1991. Natural gas accounts for roughly half of our worldwide production and reserves. Demand for this clean-burning fuel is expected to grow faster than for oil as gas increasingly becomes the fuel of choice in many applications, including electrical generation. That means opportunities for leading gas companies like Mobil. Integrated from the gas field to the end user, we produce, transport and process gas and distribute it directly to customers. And now we've adopted a goal of expanding that customer base by participating in the development and operation of power-generation facilities. In North America, we're a leader among natural-gas producers and direct marketers. Mobil Natural Gas Inc. was created in 1987 to independently market Mobil's U.S. gas production and third-party gas to customers in the U.S., Canada and Mexico. We're expanding this successful business. In Europe, Mobil Gas Marketing has taken advantage of the opening of the British gas market and is now the largest independent direct marketer of gas in the U.K., supplying gas for power generation and to a wide variety of industrial and commercial customers. In addition to marketing Mobil's equity gas production, we have purchased for resale our partners' gas from the Scott and Beryl fields. U.K. gas sales averaged 562 million cubic feet per day. Mobil will also purchase gas from the Britannia field starting in 1998. In 1994, we established the Mobil Europe Gas group to coordinate all our European affiliate gas-marketing activities and to seek new markets for gas. German gas EX-1317th Page of 70TOC1stPreviousNextBottomJust 17th sales of 465 million cubic feet a day held steady. Gas sales in Norway also held steady, while sales in the Netherlands fell slightly. The capacity of the Mobil-operated Scottish Area Gas Evacuation system (Mobil share 22.5%) was doubled to 1.2 billion cubic feet a day in 1994, and treating facilities were enhanced to accommodate the higher-sulfur gas from the Brae and Scott fields that is now being processed. In 1994, the Excalibur field (Mobil share 100%) began delivering gas through the Lancelot Area Pipeline System at a rate of 85 million cubic feet a day. A future Lancelot area satellite, the Galahad field (Mobil share 72%), is currently under development for a planned production start-up in late 1995. Deliveries of LNG from the Arun field in Indonesia now total more than 2,400 cargoes since 1978, with a record 224 cargoes shipped in 1994 to markets in the Asia-Pacific region. Each cargo is about 58,000 tons, or enough to supply all the electricity needs of a city the size of Washington, D.C., for about two weeks. Worldwide demand for LNG is expected to more than double in the next 15 years. Mobil's PT Arun joint venture is the largest marketer of LNG in the region, supplying some 20% of the LNG delivered to Asia-Pacific markets. While the Arun field will continue to produce at its current rate for some time, we are actively developing discovered fields such as South Lhok Sukon, Pase and NSO and are exploring for new ones to supplement supplies to the PT Arun processing plant after Arun production decline begins in the late 1990s. Mobil 8 EX-1318th Page of 70TOC1stPreviousNextBottomJust 18th MARKETING & REFINING MARKETING & REFINING AT A GLANCE What we do: The downstream sector processes crude oil into fuels, lubricants, petrochemical feedstocks and other products at 21 refineries. It also includes supply, trading and transportation activities that help optimize our worldwide system. Some 20,000 service stations sell Mobil products around the world. Major strengths: We have a strong presence in the high-growth Pacific Rim region, and our U.S. refineries are among the best at processing heavy, lower-cost crude oils into premium products. Operating costs have been slashed and facilities upgraded to enhance their competitiveness and meet the latest environmental standards. How we did in '94: Operating income declined 11% from 1993. Expense reductions and other business initiatives partially offset weaker manufacturing margins. Product sales rose 5%. What's ahead: Upgrades to refineries in Japan and Australia and new marketing facilities in China will help meet Pacific Rim demand growth. Organizational changes in Europe and the U.S. will enhance our ability to find growth opportunities and reduce costs. Market entry programs in Latin America are positioning us for further growth. With a brighter, more open look, "On-the-Run" stores at Mobil service stations carry new merchandise and a new strategy aimed at keeping customers coming back. By the end of 1996, we expect to have franchised more than 500 of these new convenience stores. Mobil 9 EX-1319th Page of 70TOC1stPreviousNextBottomJust 19th MARKETING & REFINING Marketing & Refining had a successful year in 1994 despite difficult business conditions. The impact of a lingering recession and continued growth in industry refining capacity caused worldwide refining margins to soften, falling as much as 30% in some markets. Improved marketing margins, particularly outside the U.S., partially offset weaker manufacturing results. While the business climate was difficult, operating income in 1994 was $964 million-only 11% below 1993's strong earnings performance-for Mobil's downstream portfolio, which includes Middle East, Marine Transportation, and Supply & Trading as well as Marketing & Refining. In contrast, many of our competitors reported a drop in downstream income of 20% to 30% or more. Mobil's growing competitive strength reflects the impact of ongoing strategies designed to make us a top global competitor-a company strong enough to weather difficult times and positioned to prosper in the good times. These strategies cover a wide range of business initiatives that can be summarized in two broad objectives: Obtain the maximum value from our existing assets through more productive operating practices and lower costs. Identify and develop opportunities for growth in selected high-potential markets as well as in existing, mature markets. Getting the most out of what we have starts with an intention to become a true market-driven organization delivering unprecedented customer satisfaction. To accomplish this, we need to understand our customers, know what they want, reinvent our business to deliver it, and do all of this at the lowest possible cost. Starting with Mobil's refineries, our people are focusing on sharing best practices and developing initiatives to improve operating reliability, increase premium product yields and reduce expenses. At our 315,000-barrel-a-day Beaumont, Texas, refinery, Mobil's largest, records were set in 1994 for the production of Super Unleaded gasoline, jet fuel and low-sulfur diesel. In addition, net cash operating costs have been reduced by more than $80 million per year since 1992. Production records were set and operating expenses reduced at many of our U.S. and overseas refineries. In Europe, a breakthrough was achieved in the use of multi-plant computer models to exploit operational synergies between refineries. Our successes there are helping Mobil refineries in other regions. We are backing up these efforts with key investments designed to improve our refineries and keep them in the top tier of competition. In the early 1990s, many of these investments were in the U.S. and were needed to meet product specifications imposed by the 1990 Clean Air Act Amendments. As a result, all five of Mobil's U.S. refineries are capable of producing cleaner-burning reformulated gasoline for today's markets. In the last few years, our focus has shifted to the Pacific Rim and the region's growing demand for quality petroleum and petrochemical products. In Australia, construction is about to begin on a $180 million upgrading unit for our Altona refinery, and we are expanding lubricant base-stock production at our Adelaide refinery. In Singapore, the major gasoline and petrochemical complex that started up at our Jurong refinery in early 1994 is already operating above design capacity. In Japan, our joint-venture refinery in Chiba (50% Mobil) brought on stream two major upgrading projects costing a total of $270 million during 1994, and approval was granted for the construction of a $370 million upgrading unit at another joint-venture refinery in Kawasaki (25% Mobil). These facilities will upgrade lower-value products, such as high-sulfur fuel oil, into higher-valued gasoline and low-sulfur distillate for the Japanese market. Continuous imразделы проведение анкетирование ppg краска ваза 2111 басейны intex добрый тепло тиристорный контактор антиобледенительные система нестандартный коробка автобетононасосы зеркало вагинальный подбор холодильный камера лечение зарубежом футбольный тотализатор доставка дров кулер 478 лакокраска измеритель сопротивление капсула миаози жила кострома прайс сушильный машина стеклянный перегородка растворитель 646 аденома ферромолибден холодильный камера купить ниппель радиат купить блинницу герб рф купить 6131 трехфазный электросчетчик asus p505 спецобувь заказ лечение алкоголизма прибор крыса купить чейнджер восстановление файл токовый клещ установка hotbird компания доминике купить нипель фосфорицирующая краска эдас-134 аденома предст.ж-зы контейнерный автозаправка ваза 2113 снегоуборочный машина магнитно-маркерные доска metrobond педагогика психология центральный детский мир эдас-934 аденома предст.ж-зы горячий обед дефектоскопия сварной швов shell omala эфирный антенна kaasi ppg краска изготовление пленка альтернативный медицина басейны intex вечерний платье управление ярославль прамышленый альпинизм стелажи силуэт слименд лифт машина r-600 шелкография московский флаг ферромолибден сдача ielts восстановление файл электрокамин dimplex model plasma (sp9) mobihel краска скрипт рассылка объвлений доставка хим. реагент позитивный психология автобетононасосы долг акриловый вставка вкладыш автоинформатор тестоокруглитель ленточный узи тошиба стелажи купить k800i футбольный тотализатор красный площадь васильевский спуск светодиодный экран билет хоккей рефконтейнеры лечение щитовидный железа деловой костюм эрозия шейка матка градирня вентиляторные грд облицовка панель газовый заправка прамышленый альпинизм трубогиб дорном купить автотехнику тонировка стекол восстановление информация электросчетчик сэт вызов врач домашний очаг здоровье танго кэш knauf гипсокартон renu multiplus 355мл помещение шиномонтаж диспетчеризация измеритель температры tognana фарфор флеш презентация виниловый дирижабль блюдо фарфор иностранный долг тонирование стеклопакетов арочный конструкция пвс избавиться спам создание лого электромонтажный стол кайт меховой холодильник 8800 gold edition штамповка стопный пластырь ножной пластырь магнитный доска акриловый вкладыш авиа отправка билет ммдм пазл огнестойкий краска экстракт корень лопух сух. man гильза микросреда компания дирижабль подбор эмаль вызов врач капсула миаози ларсен центр пассажирский лифт мытье потолок болен алкоголизмом заказать флаг градирня вентиляторные получение выписка егрп ваза 2115 зал аэробика mobil pegasus серверные корпус консольный переключатель fargo кострома риелтор тройник перех винный холодильник задний зеркало эфирный антенна locus peg perego venezia зеркало вагинальный винный холодильник масло облепих.концентрат sikkens краска враждебный поглощение вилатерм сделать пазл пошив корпоративный костюм аденома предстательный железа mobil pegasus