Exxon Mobil Corp board is discussing whether to proceed with several major oil and gas projects as fossil fuels companies are under growing pressure from investors and customers to be more green-energy friendly and cost-conscious, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The report came after a shake-off in the company’s board which placed a third of the 12-member board in new hands backed by activist investors.
According to the report, the projects currently under consideration include a $30 billion LNG development in Mozambique and another multibillion-dollar gas project in Vietnam. The two projects have been stalled due to local fights as well as high costs and sour gas. Exxon has so far made no final investment decisions on these projects. The WSJ reported that board members would vote about the projects at the end of October.
Exxon is also reviewing the estimated carbon emissions from each project, and how they would impact the company’s ability in fulfilling its climate targets, the report said, adding that the expected emissions from Mozambique and Vietnam projects were among the highest. The company also plans to declare that it would increase its investment in a low-carbon division. Previously, it announced a $3 billion investment plan through 2025 in a new unit that would focus on hydrogen, biofuels, carbon capture and storage, and other technologies.
