MOBIL <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."