Thread regarding ExxonMobil Corp. layoffs

Outlook rumour in industry is Fawley sell announcement sometime in 2q before Summer break in Europe, unless serious new and unforeseen headwinds encountered.

Rumour mill is red hot on this.

The socialists and the unions in France are harder to deal with than the Chinese. Shutdown of Chemicals/Refining in France, Germany and Italy are inevitable. Same with Fos/PJG. Europe is uncompetitive on oil/gas and petrochem because of high gas prices and high electricity prices. Burdensome climate regulations, high taxes, high labor costs and high HR benefits. At least France can be proud of lower CO2 emissions from the plant and those who no longer have jobs.

@7klc+1s1EuRVs
IOL refineries are IOL assets and will be treated as such.
The only one that might go away is Nanticoke, but only if Sarnia is able to meet the jet demand on its own.

Agree with @3ryk. With Gravenchon Chemicals shut down, PJG will no longer be a synergy site and is being set up to sell or convert to a terminal.

IOL refineries are next. Canadians, stay safe!

Pi-s poor management practices are beginning to take a toll. Toxic sls are causing workforce decline. Congratulations Durwood you are getting what you wanted. Only way to save this sinking ship is to start promoting folks from the ranks that know what it takes to make a plant run efficiently instead of these hobgoblins

Very strong, and new rumours circulating in the industry about Fawley. Sell negotiations close to conclusion it is said. Consistent with the EM selloff of the other UK plays.

My suspicion is that after the PJG steam cr--ker is shut down, the rest of the site will be sold. XOM handle the cost of removing the liability no one else wants and due to labour laws wouldn't be able to shut down right away after a sale.

They sold Sriracha right after Euro V project. Project doesn’t mean security.

True about Fawley, site impossible to sell without FAST. Not selling without FAST would mean shuttering as crude flexibility so limiting to GM. Fawley is a dead man walking unless a low cost advantaged trader buys the site to make money.

Fawleys is next. To those who say EM wouldn't spend $1bn on FAST if they didn't intend to keep it, I say they have to in order to make it a marketable asset. Did the same with the North Sea asset sales to Neo... pumped $1bn into the Penguins field beforehand and effectively sold at a loss.

Doubt you would sell Fawley post FAST, the FAST costs alone would never be recouped.

Other non chem plant refineries are likely to be next on the chopping block

So what will happen to the Texas Chemical - plastic plant & workers, when the new chemical - plastic plant is open in China in 2026?

It’s simple, the corporate overheads (including yumTech & GO&a-s, Gpee, etc) with opex cuts and bloated workforce make it hard for old refineries that aren’t integrated to turn a penny. Best is to sell it, so costs can be restructured by new owners. Win for everyone except the older employees in the original place. They get some minimal severance and are left to the street. Welcome to Capitalism.

This is a fair weather warning to all refineries and base chem plants. If you can hide in Upstream (the fat cow that feeds this company) of speciality chemicals (the less fat but still a cow), great do it. Otherwise, upskill and jump to safer have .

Yes, Fawley looks ideal after FAST for a sale. However, with Grangemouth no longer operating as a refinery, it become even more key to the UK?

We’re only selling the Fos refinery. The steam cr--ker at NDG and all of its derivative units is getting shut down. No buyer. We will continue operating the NDF refinery (for now?).

Trafigura is one of the companies buying Fos. It’s a vertical integration play for them. They’re traders first and foremost and they will be way better than us finding the exact right place to sell every drop of finished product.

At least FOS will not need to pay the EMTEC Shared Research Agreement (SRA) corporate tax. The SRA OPEX is no longer competitive within the refining industry.

It should have happened over a decade ago. The Euro-heavy leadership protected their home sites far too long-to the expense of the rest of the business.

Hopefully the new owners will let the employees keep their wine at lunch.

Some people are buying the EM sites, they don't buy unless they have a strong case to make money. Exxon is too expensive to make money for itself in any markets or locations that can't absorb it's over inflated overheads and inefficiency. You don't make money unless it's easy money when you are set up to perform in the 4th quintile.

I’m curious what you would have us do differently. Europe is in terminal industrial decline, between energy costs and labor policies. It’s sad considering I know some who work there, but it’s only surprising how long it took.

Yep, Fawley definitely in the lead as he next site to be sold.

Next in line : Uk…