ExxonMobil (XOM) is enlarging its biggest asset sale in decades, with plans to divest up to $25 billion of gas and oilfields in Europe, Asia and Africa, banking sources told Reuters.
The oil supermajor is sharpening its focus on a handful of mega projects at home and abroad, Kallanish Energy understands.
The huge selloff, which includes ExxonMobil quitting its upstream oil and gas business in Europe, comes amid growing pressure from investors to free up cash for new developments in Guyana, Mozambique, Papua New Guinea and the U.S.
Recently, the Texas-based company has drawn up a list of assets, located in at least 11 countries, which it wants to sell. The list easily exceeds its current $15 billion disposal target for 2021, three banking sources with direct knowledge of the plans told Reuters.
An ExxonMobil spokeswoman told Reuters the company does not “comment on market rumors or speculation.”
ExxonMobil, the world’s largest publicly-held energy company, has signed numerous deals in recent months, including a $4.5 billion exit from Norway. It’s also offering assets in Australia, Nigeria and Malaysia.
The expanded plan will see ExxonMobil sell out of operations in the British North Sea, Germany and Romania. In Europe, that would leave it with production in the Netherlands, where it holds a stake together with Royal Dutch Shell in the Groningen gas field, which the government plans to shut in 2022.
The plan would also see ExxonMobil significantly pare back operations in Southeast Asia with the sale of its assets in Indonesia and Malaysia, the sources told Reuters.
In Africa, ExxonMobil wants to sell its operations in Chad, Equatorial Guinea, as well as parts of its Nigerian assets.
While ExxonMobil is set to ramp up its spending sharply in the coming years to develop new oil and gas projects, most of its peers have more cautious spending plans due to an uncertain outlook for oil prices and growing pressure from investors to diversify away from fossil fuels towards renewables.
This post appeared first on Kallanish Energy News.