ExxonMobil is warning that it expects to have a one-time writedown of $2.5 billion in 4Q2023 for the reduced value of some upstream assets in California, similar to a one-time quarterly impairment expected by Chevron Corp.

The one-time impairment would be for the idled Santa Ynez Unit (SYU) and associated oil and gas facilities, ExxonMobil stated in a Securities and Exchange Commission Form 8-K.

“Impairments primarily reflect idle upstream Santa Ynez Unit assets and associated facilities in California,” ExxonMobil stated. “While the corporation is progressing efforts to enable a restart of production, continuing challenges in the state regulatory environment have impeded progress in restoring operations.”

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