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Oil Company Reports Largest Loss in History. In Addition to Divestments, ExxonMobil Also Presented Its Investment Plan
ExxonMobil, operating in the oil and gas sector, has finalized its future business plans. With the plan, the company is cutting investments and taking a write-down of US$ 20 billion in natural gas. The oil company stated that it will prioritize short-term capital spending on advantageous assets with the highest potential future value, including developments in Guyana and the Permian Basin in the U.S., targeted exploration in Brazil, and chemical projects.
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Darren Woods, the company’s president, says that “The ongoing emphasis on high-grade asset base – through exploration, divestment, and prioritizing advantageous development opportunities – will increase earning power and cash generation and rebuild the balance sheet capacity to manage future commodity price cycles while working to maintain a reliable dividend.”
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Petrobras approved the final investment decision for SEAP I (Sergipe Deep Waters), opening a new production frontier in the Northeast: Total investment for the two modules (SEAP I + SEAP II) exceeds R$ 60 billion, with an estimated production of more than 1 billion barrels of oil equivalent.
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Oil continues to fall as negotiations advance between the United States and Iran and the expectation of greater global geopolitical stability.
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Oil sees sharp drop after rumors of a deal between the United States and Iran raise hopes for an end to the war in the Middle East.
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Brazil’s oil production soars and hits an all-time high for the second consecutive month, driven by the pre-salt and the advancement of energy sector giants.
ExxonMobil has aligned several priorities and actions as part of its annual business plan. Among them is leveraging significant cost savings achieved in 2020 that are on track to exceed the announced reductions of US$ 10 billion or 30% of capital spending and 15% of cash operating expenses.
The plan also includes the continuous rhythm of investments. That is, the company expects US$ 16 billion to US$ 19 billion in capital and exploration expenditures in 2021 and US$ 20 billion to US$ 25 billion annually until 2025.
ExxonMobil noted that the next priority is to reserve the long-term value of the company’s investment portfolio by offsetting costs associated with project delays. The company plans to double profits by 2027.
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