According to the Wall Street Journal, the US company is reviewing the five-year spending plan considering the investment strategy in a rapidly changing landscape, especially post-pandemic.
Exxon Mobil’s board is currently debating whether to continue with several large oil and gas projects, including the $30 billion Area 4 Rovuma Basin project in Cabo Delgado, while there is a global push by investors for fossil fuel companies to be more investment-conscious and energy-friendly.
According to the WSJ, board members reportedly expressed concerns about some projects, including the $30 billion liquefied natural gas development in Mozambique and another gas project in Vietnam.
While it is true that Exxon itself has not publicly stated its position on these issues and that the final vote will only take place at the end of October, the truth is that for months now analysts and investors have been warning that a review of Exxon’s investment projects is inevitable as it needs to cut billions of dollars in spending to adjust its long-term strategy.
An example of this change, in May, a quarter of the company’s directors lost their seats and, with the appointment of activist Jeff Ubben, a third of the 12 board members passed into new hands.
Area 4 is operated by Mozambique Rovuma Venture (MRV), a joint venture co-owned by ExxonMobil (which leads the consortium), Eni and CNPC (China), which holds a 70% participating interest in the concession contract.
The Portuguese company Galp, Kogas (South Korea) and Empresa Nacional de Hidrocarbonetos (Mozambique) each have a 10% stake in exploration.
In early March last year, in the first weeks of the pandemic, Exxon Mobil postponed for the third consecutive year the Final Investment Decision on the natural gas exploration project in Mozambique, putting the US$30 billion investment in doubt.
