US oil and gas major ExxonMobil is set to reorganize its upstream business through the creation of new companies as part of its target to double operating cash flow and earnings in the next six years or so.
ExxonMobil said that it will optimize its upstream business and centralize project delivery across the group by taking up certain decisions.
The company’s senior vice president Neil Chapman revealed that plans are to simplify and integrate the upstream organization to further exploit the portfolio made via acquisitions and exploration success across the Permian Basin in the US, Guyana, Mozambique, Papua New Guinea and Brazil.
Chapman 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.”
The reorganization, which will come into force on 1 April 2019, will create ExxonMobil Upstream Oil & Gas, ExxonMobil Upstream Business Development and ExxonMobil Upstream Integrated Solutions.
ExxonMobil Upstream Oil & Gas will be engaged in end-to-end value chain management across five global businesses – unconventional, liquefied natural gas, deepwater, heavy oil and conventional.
ExxonMobil Upstream Business Development’s role will be to look into strategy development, exploration, acquisitions and sales of assets and also to actively handle the group’s upstream portfolio.
The oil and gas major said that consolidating its upstream portfolio management efforts in a single organization will strengthen its ability to streamline portfolio value further.
The third upstream company to be created – ExxonMobil Upstream Integrated Solutions, will focus on offering technical and specialized commercial skills like drilling, research and technology, gas and power market optimization along with the deployment of resources across the world.
As part of centralizing project delivery across the group, ExxonMobil will bundle its project-delivery capability into a single organization, called ExxonMobil Global Projects. The role of this company will be to centralize major capital project planning and execution expertise into a single entity that will support all the group’s three business segments, which are upstream, downstream and chemical.
In another development, the oil and gas major said that it will move forward with the planning needed for implementing the Ca Voi Xanh project in Vietnam alongside its partners. The integrated gas-for-power project is expected to see a multi-billion dollar investment.