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Exxon Mobil Board in Discussions Over Project Investment Strategy

Exxon is reportedly discussing whether to abandon two multi-billion dollar projects, including a $30 billion project in Mozambique.
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Exxon Mobil  (XOM) - Get Exxon Mobil Corporation Report shares gained modestly following a report that the company is considering dropping several major oil and gas developments as it reconsiders its project investment strategy.

Some members of the company's board have raised concerns about a $30 billion liquefied natural gas development in Mozambique and another multibillion-dollar gas project in Vietnam, the Wall Street Journal reported.

The discussions were "constructive" Exxon told the Journal while also saying that the company does not comment on internal discussions. 

Concerns about carbon emission and the intensive up front cost multi-billion projects has some board members worried, according to Tuesday's report. 

The discussions are taking place as part of a review of the company's five-year spending plan. The board is expected to vote on that plan at the end of the month. 

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The annual projected emissions from the Mozambique and Vietnam projects were among the highest in the company's plans for oil and gas pipeline projects. 

The Journal reported that Exxon is analyzing expected carbon emissions from each project as part of its review. 

Considerations of a change in direction come amid recent changes in the company's board. Three new directors were successfully nominated by activist investor Engine No. 1 in May and along two other new members.

Engine No. 1 controls just a 0.02% stake in Exxon Mboil, but large pension-fund investors like Calpers, Calstrs and New York State and Local Retirement Systems backed its slate.  

Shares of Exxon Mobil have risen more than 33% this year as oil prices have recovered on the rebounding global economy.