ExxonMobil to sell downstream units in Malaysia
ExxonMobil affiliates have agreed to sell their interest in three businesses operating in the Malaysian downstream petroleum sector to San Miguel Corp. (SMC).
The agreement includes ExxonMobil’s 65% stake in the publicly traded company Esso Malaysia Berhad (EMB), which operates the Port Dickson refinery, as well as its wholly-owned ExxonMobil Malaysia Sdn Bhd (EMMSB) and ExxonMobil Borneo Sdn Bhd (EMBSB) affiliates, which are involved in the retail, industrial and wholesale and aviation fuels businesses.
These refining, distribution and fuels marketing businesses will continue to operate as they do today under the new shareholder, ExxonMobil said.
The transaction has no impact on ExxonMobil’s upstream interests in Malaysia, where it is active in petroleum and natural gas exploration and production through its affiliate ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI).
Also excluded from this transaction are the marketing and sales of chemicals, lubricants, and asphalt products, and the operations of the ExxonMobil Kuala Lumpur Business Support Center.
The announcement marks a refocusing of ExxonMobil operations, but the company remains committed to Malaysia as a producer and supplier of crude, lubricants, asphalt, waxes and chemical products, it said.
The numerous physical assets in these three companies include the Port Dickson refinery (88kbd capacity), equity interest in 10 fuel distribution terminals (7 active), approximately 560 branded retail fuel sites (420 company owned), as well as ExxonMobil’s industrial and wholesale and aviation fuels businesses.
The Esso and Mobil brands used in the marketing of fuels products, including their associated marketing programs, will remain in the market place for up to three years to facilitate San Miguel Corp.’s transition to a new retail fuels brand.
San Miguel Corp. is a Philippines business conglomerate and the parent company of Petron, the largest oil refining and marketing company in the Philippines.
The agreements with San Miguel Corp. were executed by ExxonMobil International Holdings and Mobil International Petroleum Corp.
Formal change in control of the three impacted ExxonMobil affiliates, subject to regulatory review, is anticipated to occur in the first half of 2012.
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