NEWS over the potential removal of national oil corporation PETRONAS’s former head honcho Tan Sri Wan Zulkiflee Wan Ariffin from ExxonMobil Corp’s board surely comes as a ‘pride bruiser’ at a time when the whole of Malaysia struggles to endure the hardship of a total lockdown to curb the spread of the COVID-19 pandemic.
Attributing Wan Zulkiflee’s downfall to rejection by investors in historic vote, energy publication Energy Voice said this comes after ExxonMobil activist investor Engine No. 1 expanded its presence on the oil giant’s board to three seats, according to preliminary vote tallies.
To recap, Wan Zulkiflee who was the ex-resident and group CEO of PETRONAS from 2015 to 2020 joined the US oil giant – the largest oil company in the western world – in February this year. With his election, the ExxonMobil board has 11 directors, 10 of whom are independent directors.
In welcoming him to the ExxonMobil board, chairman and CEO Darren Woods had said that “Wan Zul’s (as he is fondly known) global industry expertise coupled with his insights related to energy transition will complement our highly experienced board”.
Still, “given the scale and types of challenges facing ExxonMobil which include the energy transition, loss of faith by global capital markets as well as dividend risks, nothing on Wan Zul’s experience will assist,” a Malaysian industry source told Energy Voice previously.
“Engine No. 1 is a textbook example of the forces shaping global investing,” said the Kuala Lumpur-based oil executive on condition of anonymity.
“By focusing on clear management failure, issues at ExxonMobil such as carbon policy, capital investment blunders and a lack of purpose and vision, they were able to bring along the institutional investors and notch the win.”
Wan Zulkiflee resigned from the PETRONAS in June last year after becoming embroiled in a fierce political battle between the Federal government and Sarawak state government. His downfall was sealed after he resisted all attempts to amicably resolve the dispute over oil and gas rights with Sarawak.
“ExxonMobil is at an important crossroads. Debts are piling up, many investment write-offs, no clear plan on renewables,” penned kelvinlym in Wan Zulkiflee’s defence on the Lowyat Forum.
“The ‘green’ activist may be bringing some change to the company. Whether it’s for better or for worse, only time will tell. Many shareholders are investing just for dividends, so more volatility in the short term.” – June 4, 2021
