The United States oil giant ExxonMobil Corp said in a statement that it would remove certain dry gas resources from the development plan amid the economic crisis, resulting in an impairment charge of $17-20 billion
MOSCOW (Pakistan Point News / Sputnik - 01st December, 2020) The United States oil giant ExxonMobil Corp said in a statement that it would remove certain dry gas resources from the development plan amid the economic crisis, resulting in an impairment charge of $17-20 billion.
"Assets removed include certain dry gas resources in the Appalachian and Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas in the United States, and in western Canada and Argentina. The decision will result in a non-cash, after-tax fourth quarter impairment charge of approximately $17 billion to $20 billion," the company said in a statement.
ExxonMobil's Chief Executive Darren Woods said in the statement that this decision was made to maintain a reliable dividend.
The company also expects its capital and exploration expenditures next year to be between $16-19 billion, while the capital spending through 2025 would be limited to between $20-25 billion annually.
In April, ExxonMobil said that this year it would cut capital expenditures by 30 percent and cash operating costs by 15 percent.
In October, ExxonMobil reported a $680-million loss in the third quarter and announced that it expected to cut nearly 2,000 jobs, mainly at its offices in Houston, as the coronavirus pandemic continues to alter the operations of the US oil giant.
