ExxonMobil warns EU laws could force ExxonMobil to leave Europe

Woods is one of a growing group of energy producers who are urging European legislators to revise Corporate Sustainability Due Diligence, which mandates that companies operating in the EU identify and address risks related to human rights and the environment across their supply chain.

Woods said on the sidelines at the ADIPEC conference in Abu Dhabi that it would be impossible for us to remain in Europe if we couldn't succeed there.

The directive is intended to provide investors with greater visibility of risks throughout the value chain, and hold companies responsible for any harm they may cause, even if it occurs outside Europe.

Concerns about regulatory overreach

Woods stated that the legislation requires large companies such as ExxonMobil to implement climate change plans in line with the Paris Agreement goal of limiting global temperatures to 1.5degC over pre-industrial levels. He described this requirement as being technically impossible.

He said: "What is astounding to me, the overreach, not only requires me to do this for my business in Europe but also for all of my business around world, regardless of whether or not it touches Europe."

Woods said that ExxonMobil actively campaigns against the directive and warns of "disastrous" consequences if it's adopted in its present form.

He said, "We will continue to try and rally business leaders from around the globe to push back on this legislation."

Woods says that despite the fact that European legislators are listening to energy producers' opposition, it hasn't led to any significant changes.

He said: "It's confusing the language and, in my opinion, increasing the exposure, because it has increased the room for interpretation." Last month, the European Parliament approved further changes to law. The EU hopes to approve final changes before the end of the year.

"Today it is already an overregulated, de-industrialised economy that suffocates economic growth. Woods stated that this would only stifle economic growth.

QATAR ECHOES OBJECTIONS Qatar, a major gas producer, and the United States urged European leaders to reconsider the legislation, which, they claimed, threatened Europe's reliable, affordable supply of energy.

Qatar's Energy Minister reissued his threat on Monday to stop supplying Europe with LNG and stated that it would not be able do business in Europe without the EU changing or cancelling the law.

Saad Al-Kaabi is also the CEO of QatarEnergy.

"I think Europe needs to realize that they need gas from Qatar. He said that they need gas from America. "They need gas from around the globe... It's important that they take this seriously."

Qatar has supplied between 12 and 14 percent of Europe's gas since Russia invaded Ukraine in 2022. ExxonMobil and other companies have called on the EU to go further, withdrawing the policy completely, as they claim it will lead businesses to leave Europe.

NEGOTIATING THE DETAILS FOR IRAQ'S RETURN ExxonMobil has signed an agreement to assist Iraq in developing its Majnoon giant oilfield and expanding oil exports. This marks the return of the energy company to Iraq after two years.

Woods stated that there was still a lot to be done to determine the final parameters of this development, particularly in regards to how Exxon will be compensated.

Woods stated that the company will finalise an arrangement for profit sharing, which is in line with current industry practices. (Reporting and writing by Maha El-Dahan; editing by Tom Hogue, Louise Heavens, and Andrew Mills)

(source: Reuters)