ExxonMobil is further streamlining its business structure by combining its chemical and downstream companies and centralising its technology, engineering, and other support services, to better support customers, enhance performance and grow value.
“Our transformed business structure enables us to more fully leverage the corporation’s scale, integration, technology advantages, and the skills and capabilities of our talented workforce, to better serve our customers,” said Darren Woods, Chairman and CEO.
“Aligning our businesses along market-focused value chains and centralising service delivery, provides the flexibility to ensure our most capable resources are applied to the highest corporate priorities and positions us to deliver greater shareholder returns.”
Effective of 1 April 2022, the company will be organised along three business lines – ExxonMobil Upstream Company, ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions. They will be supported by a single technology organization, ExxonMobil Technology and Engineering, and other centralised service-delivery groups providing like capabilities, building on the successful consolidation of major projects across the corporation in 2019.
The move is a further evolution of the company’s business model and part of its strategy to build globally competitive businesses that lead industry in earnings and cash flow growth, operating performance and the energy transition.
ExxonMobil is on track to exceed US$6 billion in structural cost savings by 2023, compared to 2019, driven by savings from the new business structure and measures such as centralising procurement, digital transformation of processes, and right-sizing programmes that were announced in 2020.
The new ExxonMobil Product Solutions Company will engineer, manufacture and deliver products needed by modern society at an industry-leading scale, serving multiple segments, products and markets. It will play a critical role in reducing greenhouse gas emissions and plastic waste by developing more sustainable products such as:
ExxonMobil Product Solutions will be the market leader in sales of polyethylene and other high-value chemical products and hold the number two market position in aromatics, lubricants and fuel additives.
Karen McKee, formerly President of ExxonMobil Chemical Company, has been appointed to lead ExxonMobil Product Solutions.
ExxonMobil Technology and Engineering will integrate technology activities, improving value delivery through centralised management of technical capabilities tightly linked to business priorities.
Priorities include developing new technologies to significantly lower the cost of scope 1, 2 and 3 emissions reductions; reducing greenhouse gas emissions at the asset level; increasing production yields and revenue; developing high-value differentiated products for customers; and improving advanced recycling of plastic waste.
Linda DuCharme, formerly President of ExxonMobil Upstream Integrated Solutions and ExxonMobil Upstream Business Development, has been appointed to lead ExxonMobil Technology and Engineering Company.
This change will also consolidate the upstream into a single organisation, ExxonMobil Upstream Company, which will be led by Liam Mallon, formerly President of ExxonMobil Upstream Oil and Gas Company.
To further collaboration and integration, the company said it will relocate its corporate headquarters from Irving, Texas, to its campus north of Houston, US. The move, which will be completed mid-year 2023, will enable closer teamwork to accelerate and increase value delivery through company-wide approaches.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” said Woods. “Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition.”
Read the article online at: https://www.hydrocarbonengineering.com/the-environment/01022022/exxonmobil-to-streamline-its-business-structure/