Standard Post with Image

Exxon Plans to Merge Fuels, Lubricants Divisions

  • Exxon Mobil Corp plans to merge two of its products divisions, a sign of the times for big oil companies who generally are sharpening their corporate focus on the growing challenges of exploration and production.The largest US oil company said on Wednesday it expected its Lubricants & Petroleum Specialties Company to merge with its Fuels Marketing Company, effective Feb. 1, 2012, subject to board approval.This follows last year's move by Chevron Corp to merge its chemicals and refinery units into one integrated "downstream" division, as it favors investment in the steadier and recently far more lucrative "upstream" business of oil and gas extraction.
  • Chevron has since shrunk its downstream profile worldwide, selling off several marketing units and its British refinery.Others have abandoned downstream operations altogether, including ConocoPhillips and Marathon Oil Corp.Exxon said the merged unit was set to be run by Alan Kelly, now president of the lubricants arm, which is home to the Mobil 1 motor oil brand and which Exxon says is the world's top supplier of lubricant basestocks with 18 per cent market share.Fuels Marketing is responsible for customers at 42,000 service stations, 700 airports and 300 marine ports. Its president, Harold Cramer, is stepping down at the end of the month after 38 years with the company.Exxon has two other divisions responsible for its refining and chemical operations.

Source