HOUSTON – ExxonMobil confirmed Monday that the oil and gas giant will be relocating its corporate headquarters from Irving, Texas to its campus north of Houston. The move, which will be completed mid-year 2023, will enable closer teamwork to accelerate and increase value delivery through company-wide approaches.
In a statement sent to KPRC2, ExxonMobil said about 250 people currently work at the Irving location, including the CEO and management committee. The company is hoping that the majority of its employees will relocate to Houston.
“I welcome today’s news that ExxonMobil will relocate its corporate headquarters to the Houston area. As the 10th largest company in the U.S., according to the Fortune 500, Exxon will bring a strong workforce and a wealth of resources,” said Mayor Sylvester Turner. “In this city, we partner with our energy sector to move forward positively in a way that can benefit Houstonians and create a global impact on climate, resilience and sustainability. Exxon’s decision further supports Houston as the center of the energy transition.”
Turner said the city is currently working on two major projects with the company, including the large-scale deployment of carbon capture and storage (CCS) technology.
The Greater Houston Partnership said the news proves Houston is a leader in the industry.
“We are thrilled with today’s news. ExxonMobil’s move further solidifies Houston’s position as the Energy Capital of the World. ExxonMobil is a key participant in our Houston Energy Transition Initiative said the agency’s CEO Bob Harvey. “We look forward to working with the company as we continue to position Houston to lead the energy transition to a low-carbon future.”
Harvey went on to say, “ExxonMobil’s announcement represents the third Fortune 500 headquarters announcement in greater Houston in 13 months, solidifying our position as the number 3 Fortune 500 headquarters city in the nation.”
ExxonMobil is further streamlining its business structure by combining chemical and downstream companies and centralizing technology and engineering, and other support services, to better support customers, enhance performance and grow value.
“Our transformed business structure enables us to more fully leverage the corporation’s scale, integration, technology advantages, and the skills and capabilities of our talented workforce, to better serve our customers,” said Darren Woods, chairman and chief executive officer.
“Aligning our businesses along market-focused value chains and centralizing service delivery, provides the flexibility to ensure our most capable resources are applied to the highest corporate priorities and positions us to deliver greater shareholder returns.”
Effective April 1, the company will be organized along three business lines – ExxonMobil Upstream Company, ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions. They will be supported by a single technology organization, ExxonMobil Technology and Engineering, and other centralized service-delivery groups providing like capabilities, building on the successful consolidation of major projects across the corporation in 2019.
The move is a further evolution of the company’s business model and part of its strategy to build globally competitive businesses that lead industry in earnings and cash flow growth, operating performance and the energy transition.
ExxonMobil is on track to exceed $6 billion in structural cost savings by 2023, compared to 2019, driven by savings from the new business structure and measures such as centralizing procurement, digital transformation of processes, and right-sizing programs that were announced in 2020.
The new ExxonMobil Product Solutions Company will engineer, manufacture and deliver products needed by modern society at an industry-leading scale, serving multiple segments, products and markets. It will play a critical role in reducing greenhouse gas emissions and plastic waste by developing more sustainable products such as:
- Lower-emissions fuels to help decarbonize commercial transportation, including aviation and marine.
- Chemical performance products that enable customer emissions reductions in applications in the agriculture, health and renewable energy sectors.
- Next-generation lubricants and plastics that improve efficiency for traditional and electric vehicles.
- Certified circular polymers that bring new life to plastic waste through advanced recycling.
ExxonMobil Product Solutions will be the market leader in sales of polyethylene and other high-value chemical products and hold the No. 2 market position in aromatics, lubricants and fuel additives.
Karen McKee, formerly president of ExxonMobil Chemical Company has been appointed to lead ExxonMobil Product Solutions.
ExxonMobil Technology and Engineering will integrate technology activities, improving value delivery through centralized management of technical capabilities tightly linked to business priorities.
Priorities include developing new technologies to significantly lower the cost of scope 1, 2 and 3 emissions reductions; reducing greenhouse gas emissions at the asset level; increasing production yields and revenue; developing high-value differentiated products for customers; and improving advanced recycling of plastic waste.
Linda DuCharme, formerly president of ExxonMobil Upstream Integrated Solutions and ExxonMobil Upstream Business Development, has been appointed to lead ExxonMobil Technology and Engineering Company.
“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” said Woods. “Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition.”
This change will also consolidate the Upstream into a single organization, ExxonMobil Upstream Company, which will be led by Liam Mallon, formerly president of ExxonMobil Upstream Oil and Gas Company.