- Company has agreed to Sell operational and non-operated Barnett Shale gas assets in Texas for $750 million
- Company has entered into agreement to sell its Romanian upstream affiliate for over $1 bn to Romgaz
- Company is also planning a large-scale blue hydrogen facility in Baytown, Texas
- The financials of the company has been impacted by the Ukraine war
ExxonMobil has agreed to sell operational and non-operated Barnett Shale gas assets in Texas for $750 million to subsidiaries of BKV Corporation. Additional payments will be made under transaction and payment estimation will be based on future natural gas prices.
ExxonMobil is committed to maximising shareholder profits by pursuing opportunities with the lowest cost of supply. According to Liam Mallon, president of ExxonMobil Upstream Company, the Company will continue to improve its upstream leadership position.
Under the terms of the transaction:
- North American gas assets were removed from the company’s development plan in 2020.
- Sale is in line with the company’s investment priorities on advantaged assets which have lowest cost of supply
- The transaction may be completed during the first half of the FY 2022.
Barnett Shale gas assets have operated safely and responsibly for nearly two decades. After acquisition, BKV has plans to develop the resource in line with the policy of achieving net zero greenhouse gas emissions by 2025.
Under the terms of the transaction, employees’ jobs will be safe. All employed with ExxonMobil subsidiaries in the Barnett Shale will receive full employment offers with BKV. The transaction may be completed during the first half of the FY 2022.
During the beginning of May 2022, ExxonMobil announced its agreement to sell its upstream assets to Romgaz. Company has entered into agreement to sell its Romanian upstream affiliate known as ExxonMobil Exploration and Production Romania for over $1 bn to Romgaz, the transaction is subject to Romanian government approvals and expected to close during the second quarter. ExxonMobil has had a presence in Romania’s upstream industry since November 2008, when it purchased a stake in the Black Sea’s deepwater Neptun Deep block.
Romgaz is Romania’s largest natural gas producer and one of the biggest in Eastern Europe. The company is Romania’s largest natural gas supplier, producing over 40% of the country’s total natural gas consumption.
During April, ExxonMobil has announced three fresh finds off the coast of Guyana, raising its estimate of the Stabroek Block’s recoverable resource to nearly 11 billion oil-equivalent barrels.
The Stabroek Block in Guyana covers 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited, an ExxonMobil subsidiary, is the operator and owns a 45 percent stake in the Block. Hess Guyana Exploration Ltd. maintains a 30% stake, while CNOOC Petroleum Guyana Limited holds a 25% stake.
ExxonMobil is advancing its step in Carbon Capture. The company has partnered with Pertamina, Indonesia’s state-owned energy provider, to investigate the feasibility of large-scale adoption of lower-emission technologies such as carbon capture and storage and hydrogen production. Company is also planning a large-scale blue hydrogen facility in Baytown, Texas, which will be supported by one of the world’s largest carbon capture and storage projects.
Company earned $5.5 billion in the first quarter of 2022. Operating operations generated $14.8 billion in cash flow. Cash flows were sufficient to support capital expenditures and dividends to shareholders.
The financial results of the company has been impacted by the Ukraine war. The first-quarter results included a $3.4 billion unfavourable identified item related to ExxonMobil’s expected withdrawal from Russia’s Sakhalin-1.