ExxonMobil announced 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.
“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 US Permian Basin, Guyana, Mozambique, Papua New Guinea and Brazil,” Neil Chapman, Senior Vice President, said.
“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,” Mr Chapman added.
The reorganization will be effective 1 April 2019 and involve creation of three new upstream companies – ExxonMobil Upstream Oil & Gas Company, ExxonMobil Upstream Business Development Company and ExxonMobil Upstream Integrated Solutions Company.
The ExxonMobil 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.
ExxonMobil Upstream Business Development Company will oversee strategy development, exploration, acquisitions and divestments and actively manage an upstream portfolio. Consolidation of upstream portfolio management efforts in one organization will further strengthen the company’s ability to optimize portfolio value.
ExxonMobil Upstream Integrated Solutions Company will provide technical and specialized commercial skills, such as drilling, research and technology, gas and power market optimization, and the global deployment of resources.
The following executives will lead the new companies:
- Liam Mallon, currently President of ExxonMobil Development Company, 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.
- Linda DuCharme, currently President of ExxonMobil Global Services Company, will become President of ExxonMobil Upstream Integrated Solutions Company.
The company’s project-delivery capability will be enhanced through a single organization – ExxonMobil Global Projects Company – which will centralize major capital project planning and execution expertise into a single organization that will support all three business segments – upstream, downstream and chemical.
Neil Duffin, currently President of ExxonMobil Production Company, will become President of ExxonMobil Global Projects Company.
As part of the company’s annual presentation to investment analysts in March 2018, ExxonMobil outlined a growth strategy to increase earnings by more than 100% – to $31 billion by 2025 at constant 2017 prices – from 2017’s adjusted earnings.
Investments outlined during the annual investor presentation, across all three segments of ExxonMobil’s business – upstream, downstream, and chemical – will generate double digit rates of return.