Exxon Mobil Corporation's (NYSE:XOM) vice president of its shale oil and gas business, which has been central to the group’s planned acquisition of Pioneer Natural Resources (NYSE:PXD), was arrested on Thursday on accusations of sexual assault.
David Scott, who has been with Exxon for over 26 years, holding leadership roles in various international operations including in the UK and UAE, was arrested in Texas on second-degree assault charges and has had his bail set at US$30,000.
The arrest of Scott, who has played an instrumental role in Exxon’s ambitious takeover plans, comes at a critical time for Exxon, which is in the middle of its largest acquisition since the 1999 Mobil merger.
Last week, reports revealed ExxonMobil was considering taking over shale producer Pioneer Natural Resources in a deal which values the company at over $55 billion.
“All ExxonMobil employees, officers and directors are accountable for observing the highest standards of integrity and code of conduct in support of the company’s business and otherwise,” a company statement said, adding that “this individual will not continue work responsibilities”.
Scott’s arrest has thrown Exxon’s key growth strategy into uncertainty, given his pivotal role in overseeing the company’s operations in the prolific Permian Basin, America’s leading oilfield, which the US giant would become undisputed leader of should it acquire Pioneer.
ExxonMobil’s shares lifted a little over 2% in pre-market trading on Monday, having closed for the weekend at US$108.99.