USA: Oil and Gas Exxon Mobil to Streamline Upstream Organisation
With an aim to support the company’s growth plans, Exxon Mobil has undertaken this move. The firm also plans to centralise its project delivery across the company and further integrate its upstream business with the downstream and chemical segments.
Texas/USA – Exxon Mobil Corporation has recently stated that it will streamline its upstream organisation and centralise project delivery across the company to support previously announced plans to double operating cash flow and earnings by 2025.
The company intends to focus on increasing its overall value by strengthening its upstream business and further integrating it with the downstream and chemical segments to take advantage of its unique capabilities across the value chain.
The reorganisation will be effective from April 1 and involve creation of three new upstream companies – Exxon Mobil Upstream Oil & Gas Company, Exxon Mobil Upstream Business Development Company and Exxon Mobil Upstream Integrated Solutions Company.
The Exxon Mobil Upstream Oil & Gas Company will focus on end-to-end value chain management in five distinct global businesses – unconventional, liquefied natural gas, deepwater, heavy oil and conventional.
Exxon Mobil Upstream Business Development Company will oversee strategy development, exploration, acquisitions and divestments and actively manage an upstream portfolio that is considered the most attractive since the 1999 merger of Exxon and Mobil. Consolidation of upstream portfolio management efforts in one organisation will further strengthen the company’s ability to optimise portfolio value.
Exxon Mobil Upstream Integrated Solutions Company will provide technical and specialised commercial skills, such as drilling, research & technology, gas and power market optimisation, and the global deployment of resources.
The following executives will lead the new companies:
• Liam Mallon, currently president of Exxon Mobil Development Company, will become president of Exxon Mobil Upstream Oil & Gas Company.
• Steve Greenlee, currently president of Exxon Mobil Exploration Company, will become president of Exxon Mobil Upstream Business Development Company.
• Linda Du Charme, currently president of Exxon Mobil Global Services Company, will become president of Exxon Mobil Upstream Integrated Solutions Company.
The company’s proven project-delivery capability will be enhanced through a single organisation —Exxon Mobil Global Projects Company—which will centralise major capital project planning and execution expertise into a single organisation that will support all three business segments – upstream, downstream and chemical.
Neil Duffin, currently president of Exxon Mobil Production Company, will become president of Exxon Mobil Global Projects Company.
As part of the company’s annual presentation to investment analysts in March 2018, Exxon Mobil outlined a growth strategy to increase earnings by more than 100 per cent – to 31 billion dollars by 2025 at constant 2017 prices – from 2017’s adjusted earnings.
Investments outlined during the annual investor presentation, across all three segments of the firm’s business – upstream, downstream, and chemical – will generate double digit rates of return.