MOBIL <MOB> WILL NOT INCREASE BUDGET
Mobil Corp Chairman Allen E. Murray said
the company's exploration and production budget would not be
increased in the foreseeable future as it is "operating on the
assumption that (oil) prices will remain on the lower end of
the spectrum.
     "Our budget is at about the same level as it was last year
and I think it is the right amount," said Murray who was in
town for ceremonies celebrating the consolidation of Mobil's
domestic exploration and production operations into a new,
locally-based subsidiary.
     Last year, Mobil spent a total of 2.13 billion dlrs on
exploration and production, 341 mln dlrs in the United States
and 1.79 billion overseas.
     Murray said the new subsidiary, Mobil Exploration and
Production U.S. Inc., was not created as "part of any cost
saving effort" but instead to "increase our efficiency and
ability to stay ahead of the pack."
     The consolidation will, however, save Mobil about 15 mln
dlrs annually once relocation and reorganization costs have
been absorbed, according to A.F. Stancell, vice president of
U.S. producing operations for the company.
     Mobil, the nation's second largest oil company, responded
to the collapse of oil prices last year -- from 30 dlrs a
barrel at end-1985 to as low as 10 dlrs in mid-1986 -- by
laying off 5,500 people and cutting its budget in midyear by 27
percent, or 1.1 billion dlrs.
     Of that amount, more than 900 mln dlrs was eliminated from
its exploration and spending spending plans.
     But the company reported an increase in profits in 1986
over 1985 and a jump in per share earnings to 3.45 dlrs a share
from 2.55 dlrs.           
 Reuter
