Exxon Mobil plans to quit business in Europe and sell off assets in Asia and Africa.
Exxon Mobil is about to make its biggest assets sale for decades. The multinational Oil and Gas company in a bid to free up cash; has put up oil and gas fields in Europe, Asia and Africa worth US$25 billion for sale. The company according to sources plans to use the freed up cash to focus on a handful of mega-projects; which are part of its divestment plans.
Darren Woods, the Chief Executive Officer and Chairman believes the sell-off will help Exxon Mobil to catch up with its competitors; who following the 2014 market crash carried out sweeping portfolio reviews and sold bundles of assets.
Over recent years, Exxon Mobil have continued to underperform when compared to its competitors and major rivals. Disposing off of these assets in three(3) continents will help the company increase the amount available for spending on new developments that will also appease unhappy investors. The investors have been unhappy with weak cash generation and oil output, which flatlined and remained static under Rex Tillerson, who was Woods’ predecessor.
Exxon Mobil plans to end its upstream oil and gas business in Europe; and then use the cash to fund new developments in Guyana, Mozambique, Papua New Guinea, Brazil and the United States.