ExxonMobil reshuffling business lines and moving HQ to Houston

U.S. oil and gas major ExxonMobil is reorganising its business structure to improve effectiveness and reduce costs and moving its headquarters from Irving, Texas to Houston.

The oil and gas giant on Monday revealed its plans to further streamline its business structure by combining chemical and downstream companies and centralizing technology and engineering, and other support services. The company is making this move to better support customers, enhance performance, and grow value.

Darren Woods, chairman and CEO, said: “Aligning our businesses along market-focused value chains and centralizing 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.”

Starting from April 1, 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 organisation, ExxonMobil Technology and Engineering, and other centralized service-delivery groups providing like capabilities, building on the successful consolidation of major projects across the corporation in 2019.

As explained by the company, the move is a further evolution of the company’s business model and part of its strategy to build globally competitive businesses that lead the industry in earnings and cash flow growth, operating performance, and the energy transition.

Earlier this year, ExxonMobil finally joined its rivals in a pledge to achieve net-zero greenhouse gas emissions for its operated assets by 2050. The oil major also confirmed its commitment to helping customers reduce their greenhouse emissions by investing in carbon capture and storage, hydrogen, and biofuels.

The company is on track to exceed $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 programs that were announced in 2020.

The new ExxonMobil Product Solutions Company will engineer, manufacture, and deliver products, 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 like lower-emissions fuels to help decarbonise aviation and marine transportation; chemical performance products that enable emissions reductions in applications in the agriculture, health, and renewable energy sectors; next-generation lubricants and plastics for traditional and electric vehicles; and certified circular polymers.

Karen McKee, formerly president of ExxonMobil Chemical Company has been appointed to lead ExxonMobil Product Solutions.

Priorities for ExxonMobil Technology and Engineering, which will integrate technology activities, include developing new technologies to 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.

The oil major also said it will relocate its corporate headquarters from Irving, Texas, to its campus north of Houston. The move, which will be completed mid-year 2023, will enable closer teamwork to accelerate and increase value delivery through company-wide approaches.

“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,” Woods concluded.