US energy giant ExxonMobil said it will streamline its upstream organization and centralize project delivery across the company to support plans to double operating cash flow and earnings by 2025.
The reorganization will be effective April 1 and involve the 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 that is considered the most attractive since the 1999 merger of Exxon and Mobil. 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 & technology, gas and power market optimization, and the global deployment of resources.
“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,” said Neil Chapman , senior vice president.
The company said in a statement, that 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 percent to $31 billion by 2025 at constant 2017 prices.
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.