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Multinational oil and gas firm, ExxonMobil, intends to boost cash flow by $14 billion between 2023 and 2027.
The company said in a corporate strategy update on Wednesday that continuous efforts to improve its business mix and lower operating costs will support this expansion.
ExxonMobil stated that it wants to maximise its business mix by growing sales of high-value goods like performance chemicals, low-emission fuels, and advanced lubricants while simultaneously increasing output from low-cost assets.
In addition to finding ways to lower emissions in difficult economic areas, this approach is consistent with their aim to supply energy on a worldwide scale.
The company anticipates a large rise in upstream (oil and gas production) profitability by 2027 compared to 2019. This expansion will result from investments in profitable projects with low supply costs.
At a Brent price of $35 per barrel, about 90% of their planned capital investments in new oil and gas production over the next five years are expected to provide returns of more than 10%.
ExxonMobil also stated in its statement that it plans to save a further $6 billion in structural costs by the end of 2027, bringing the total savings to over $15 billion compared to 2019.
They intend to accomplish this by streamlining numerous operational components such as maintenance, supply chain, financial reporting, and trade, among others.
The International Energy Agency (IEA) reported in its 2023 World Energy Investment report in October 2023 that major oil, gas, and coal corporations are expected to increase investments in unabated fossil fuel supply by more than 6% in 2023, totaling approximately $950 billion.
President Bola Ahmed Tinubu met with an ExxonMobil delegation in September 2023 to try to get the energy giant to engage in Nigeria’s oil and gas business, claiming that the country is now ready for business under his leadership.
Meanwhile, ExxonMobil’s President of Global Upstream Operations, Liam Mallon, expressed appreciation for President Tinubu’s unwavering commitment to Nigeria’s interests.
He promised a significant increase in output, vowing to supply about 40,000 barrels per day (bpd) as part of a future investment phase in Nigeria.
In his remarks to President Tinubu, Mallon emphasised the company’s commitment to growing deepwater production.
Mallon vowed reciprocal efforts in gratitude for Tinubu’s leadership, emphasising the right timing for growth.
Source: allnewsng.com
