ExxonMobil Looks to Dump $25 Billion in Oil and Gas Assets
ExxonMobil is working to increase its asset sale program significantly, and is expected to give up oil and gas assets in Asia, Europe and Africa, worth up to US $ 25 billion, in order to free cash to invest in other basic projects (according to Reuters).
Darren Woods, Chairman and CEO, confirmed that Exxon has an official target of selling $15 billion of non-strategic assets by 2021. Nearly a third of the target was achieved in the third quarter of 2019.
Currently, the company focuses on Permian, Guyana, Mozambique and Papua New Guinea. The company is also looking to sell more assets in at least 11 countries worldwide.
The company signed a deal in September 2019 to sell its non-operating assets in Norway to Var Energi AS for $4.5 billion. The company may also seek to sell its assets in the UK, making it the latest US oil company to leave the North Sea in the UK.
Reuters estimates that Exxon is also looking to sell offshore gas assets in Germany, sell a stake in a offshore project in Romania, stakes in fields in Nigeria, their entire stake in a field in Chad, exit from Equatorial Guinea, and sell assets in Malaysia, Indonesia, Australia and Azerbaijan. Exxon is also in talks to sell stakes in several fields in the Gulf of Mexico.
Moody’s has therefore changed its valuation of Exxon from “stable” to “negative” and expects negative free cash flow to continue in 2020 and 2021, even if the company achieves its $15 billion official asset sale target by 2021.