Exxon Mobil Expects To Take Up To $2.6 Bln Writedown On California Assets

(RTTNews) - Exxon Mobil Corp. (XOM) expects to book $2.4 billion - $2.6 billion in impairments in the fourth quarter for its upstream business.

Impairments primarily reflect idle Upstream Santa Ynez Unit assets and associated facilities in California. While the company is progressing efforts to enable a restart of production, continuing challenges in the state regulatory environment have impeded progress in restoring operations, Exxon Mobil said in a regulatory filing.

The announcement comes days after Chevron Corp. (CVX) said it would book $3.5 billion to $4 billion in charges for the fourth quarter, due to challenges related to regulations in California and previously sold oil and gas production assets in the Gulf of Mexico.