HOUSTON, (Reuters) – Exxon Mobil (XOM.N), said yesterday that Dan Ammann, former president of General Motors (GM.N), will take over its largest and most profitable business early next year.
Ammann, who joined Exxon two years ago to run its clean energy unit, called Low Carbon Solutions, will replace 34-year Exxon veteran Liam Mallon as president of Exxon’s oil and gas pumping business, effective Feb. 1, 2025.
The appointments of Ammann and Barry Engle, another former GM executive, as president of Low Carbon Solutions, reflects the U.S. oil producer’s continued reshaping of its top management with outsiders.
“It certainly is a new management model for Exxon Mobil, which really started post-activist Engine 1’s board shakeup,” said energy analyst Paul Sankey of Sankey Research, referring to an activist investor’s 2021 proxy fight that won three Exxon board seats.
As head of Exxon’s Upstream business unit, Ammann will oversee a business that has contributed more than two-thirds of Exxon’s operating profit this year.
Engle, who joined the company in September as an Ammann deputy, is a long-time auto industry executive who worked at General Motors until 2020. The Low Carbon unit was designed to make a business by helping Exxon and industrial customers reduce carbon emissions from operations.
Under Ammann, Exxon has spent big on potential carbon dioxide sequestration sites, acquiring carbon dioxide pipeline firm Denbury for $4.9 billion, and creating lithium and hydrogen development partnerships.
While more than 100 nations wanted to cap plastic production, a handful of oil-producers were prepared only to target waste.
Abu Dhabi state oil firm ADNOC recently struck a preliminary deal to acquire a 35% stake in a proposed Exxon hydrogen project if it reached a financial go-ahead. Financial terms were not disclosed.
“These appointments continue the company’s approach of leveraging the diverse skills and experiences of a very accomplished executive team to bring fresh perspectives and approaches to each of our exceptionally talented organizations,” said Exxon CEO Darren Woods in a statement.
Exxon in 2021 named former Diageo drinks finance executive Kathryn Mikells as CFO and this year hired general counsel Jeff Taylor from Fox Corp (FOXA.O).
