MOBIL &lt;MOB> CAPITAL EXPENDITURES LOWER IN 1987

  Mobil Corp chairman Allen E. Murray
  said in the annual report issued today that the company's total
  1987 capital expenditures would be lower than the three
  billion dlrs spent in 1986.
      "Overall capital and exploration expenditures will fall
  slightly below the level for 1986 although we'll be ready to
  increase spending whenever the outlook becomes more promising,"
  Murray said.
      Mobil data in the annual report shows capital expenditures
  have been cut every year since 1984's 3.6 billion dlrs to 3.5
  billion dlrs in 1985.
      Murray told shareholders that despite the cuts "the company
  has promising acreage to explore as well as major oil and gas
  reserves to develop in the U.S., Canada, Europe, Africa and
  Indonesia.
      Over the past two weeks Mobil has announced restructuring
  of its domestic exploration and development organization and
  this week a restructuring of its oil services units, which
  support the new affiliate.
      "Mobil's chairman has explained this change by saying we
  need a leaner organization to get more efficient usage from our
  assets," said John Lord, a Mobil Corp spokesman.
      Murray said in announcing the first reorganization, which
  will combine its current three exploration and producing
  affiliates into one organization, Mobil Exploration and
  Production U.S. Inc, that it is more effective than the present
  organization and will improve the company's upstream
  competitive position.
      Yesterday the company said that it will restructure its
  Mobil Exploration and Producing Services Inc, MEPSI, to enhance
  the development and transfer of technology supporting critical
  areas of exploration, drilling, resevoir management and
  computer systems.
      Earnings from Mobil's upstream operations in 1986 were 827
  mln dlrs, down 54 pct from the previous year's 1.8 billion dlrs
  in earnings.
      Mobil's strategy in the exploration and production sector
  will be to give most attention to exploration possibilities
  with the greatest long term potential, the company said.
      In its annual report, Mobil said that this will include
  greater emphasis on "frontier plays that, although riskier, fit
  our strengths of technology and size...This probably also means
  a shift toward emphasis in the foreign area since selective
  overseas exploration offers greater potential."
  

