ExxonMobil Restructures its Upstream
US major ExxonMobil will streamline its upstream organisation and centralise project delivery across the company, it said January 31. The aim is to support its announced plan to double operating cash flow and earnings by 2025.
The world's biggest privately-owned oil and gas producer wants annual earnings of $31bn by 2025 at constant 2017 prices and to generate double-digit rates of return from its upstream, downstream and chemicals units.
Senior vice-president Neil Chapman said it was time to organise the "industry-leading portfolio" it had assembled with finds and acquisitions in the US Permian Basin, Guyana, Mozambique, Papua New Guinea and Brazil.
That will involve integrating upstream with the downstream and chemical segments, along the lines of its Permian activities where upstream, midstream and downstream investments allow it to maximise value, "unlike any of our competitors.”
From April 1 there will be three new upstream companies: ExxonMobil Upstream Oil & Gas Company; ExxonMobil Upstream Business Development Company; and ExxonMobil Upstream Integrated Solutions Company.
The first of those will focus on end-to-end value chain management in five distinct global businesses: unconventional, LNG, deepwater, heavy oil and conventional. It will be managed by Liam Mallon, now president of ExxonMobil Development.
The second will actively manage the portfolio, overseeing strategy development, exploration, acquisitions and divestments. Consolidating upstream portfolio management will allow better optimisation of portfolio value, it said. It will be managed by Steve Greenlee, who is now head of ExxonMobil Exploration.
And the third will provide technical and specialised commercial skills, such as drilling, research & technology, gas and power market optimisation, and the global deployment of resources. It will be run by Linda DuCharme, now head of ExxonMobil Global Services. The present president of ExxonMobil Gas & Power Marketing is Peter Clarke, who will have been a year in the job in a month.
The company’s project-delivery capability will be managed by ExxonMobil Global Projects. Neil Duffin, who is now president of ExxonMobil Production, will run it so that it supports all three business segments: upstream, downstream and chemical, it said.