Exxon Mobil Corporation (NYSE:XOM) is prepared to write down some $2.6 billion from the value of its Californian assets which include fields out of action since 2015.
The Santa Ynez project was taken offline amid a pipeline leak and has been the subject of multiple efforts to restart operations.
Exxon, in a Securities and Exchange Commission filing, said that it is still progressing efforts ‘to enable a restart of production’ but noted continuing regulatory challenges. It added that it may write down between $2.4 billion and $2.6 billion for the offline asset.
In New York, Exxon stock was slightly higher ahead of Friday’s open after closing close to 1% lower yesterday.