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October 20, 2021

Exxon Mobil Corp (XOM.N) board is debating whether to continue with several major oil and gas projects amid a global push from investors for fossil fuel companies to be more cost-conscious and green-energy friendly.

Board members expressed concerns about some projects, including a $30 billion liquefied natural gas development in Mozambique and another multibillion-dollar gas project in Vietnam, the report said, citing people familiar with the matter. Analysts and investors had warned that an overhaul of Exxon's board would shift billions of dollars in spending and strategy over several years.

In May, a quarter of the company's directors lost their seats to outsiders and the appointment of activist Jeff Ubben in March puts a third of the 12-member board in new hands. The talks on projects are taking place as part of a review of Exxon's five-year spending plan, on which the board is set to vote at the end of this month.

The Mozambique or Vietnam projects have been stalled for long periods over local fights as well as sour gas and high costs. No final investment decisions have been taken on these projects. Exxon board members have expressed concerns about whether the projects would return the billions in upfront investment they would require.