Exxon Streamlines Upstream to Support Growth
ExxonMobil Corporation (Exxon) has revealed it will “streamline” its upstream organization and “centralize project delivery across the company” to support previously announced plans to double operating cash flow and earnings by 2025.
The reorganization will be effective April 1 and will involve the creation of three new upstream companies; ExxonMobil Upstream Oil & Gas Company, ExxonMobil Upstream Business Development Company and ExxonMobil Upstream Integrated Solutions Company.
Exxon said the company’s “proven” project-delivery capability will be “enhanced” through a single organization – ExxonMobil Global Projects Company.
ExxonMobil Upstream Oil & Gas Company will focus on end-to-end value chain management in five global businesses – comprising unconventional, liquefied natural gas, deepwater, heavy oil and conventional – Exxon revealed.
ExxonMobil Upstream Business Development Company will oversee strategy development, exploration, acquisitions and divestments and ExxonMobil Upstream Integrated Solutions Company will provide technical and specialized commercial skills, such as drilling and research and technology, according to Exxon.
ExxonMobil Global Projects Company will centralize major capital project planning and execution expertise into a single organization that will support all three business segments – upstream, downstream and chemical – Exxon outlined.
The current president of ExxonMobil Development Company, Liam Mallon, will become president of ExxonMobil Upstream Oil & Gas Company.
Steve Greenlee, currently president of ExxonMobil Exploration Company, will become president of ExxonMobil Upstream Business Development Company and Linda DuCharme, currently president of ExxonMobil Global Services Company, will become president of ExxonMobil Upstream Integrated Solutions Company.
Neil Duffin, currently president of ExxonMobil Production Company, will become president of ExxonMobil Global Projects Company.
“We’re simplifying and integrating our upstream organization to better capitalize on the industry-leading portfolio we’ve assembled through acquisitions and exploration success in the U.S. Permian Basin, Guyana, Mozambique, Papua New Guinea and Brazil,” Neil Chapman, Exxon senior vice president, said in a company statement.
“Our focus is on increasing overall value by strengthening our upstream business and further integrating it with the downstream and chemical segments to take advantage of our unique capabilities across the value chain. A clear example is what we’re doing in the Permian, which includes upstream, midstream and downstream investments, enabling us to maximize value unlike any of our competitors,” he added.
As part of the company’s annual presentation to investment analysts in March 2018, Exxon outlined a growth strategy to increase earnings by more than 100 percent to $31 billion by 2025.
Exxon, which is the largest publicly traded international oil and gas company, according to its website, is scheduled to release its fourth quarter and full year 2018 earnings on Friday.
On November 2, 2018, Exxon announced estimated third quarter 2018 earnings of $6.2 billion, compared with $4 billion a year earlier.
Exxon has offices all around the world, including North America, South America, the Middle East/North Africa, Sub Saharan Africa, Asia Pacific and Europe.
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