KUALA LUMPUR: Exxon Mobil Corp is contemplating a sale of its Malaysian upstream offshore belongings because the US vitality large continues with its divestiture programme, in keeping with individuals with information of the matter.
The corporate is working with an adviser on the potential sale of the Malaysian belongings, which may elevate about US$2 billion to US$three billion, the individuals stated, asking to not be recognized as a result of the matter is non-public.
Exxon has began sounding out potential patrons, though sale concerns are at a preliminary stage and the corporate may nonetheless determine towards a transaction, the individuals stated. Potential bidders for the belongings may embrace different main vitality corporations with an curiosity within the area, the individuals stated.
Exxon Mobil didn’t instantly reply to requests exterior of normal enterprise hours in Texas the place it’s headquartered, whereas its representatives in Singapore and Australia weren’t in a position to present remark.
A sale would observe Exxon’s sale of its US$four.5 billion Norwegian belongings final month, which is a part of the corporate’s divestment plan designed to assist fund one of many largest company turnarounds in its historical past after years of stagnating manufacturing and a stock-price that has underperformed rivals.
For Asia, Exxon is more likely to exit tasks value a mixed US$5 billion in Vietnam, Indonesia, Thailand, Australia and Malaysia as a part of its asset gross sales programme, Wooden Mackenzie analysts together with Andrew Harwood stated in a press launch Monday.
Exxon produces oil and gasoline in Malaysia beneath 4 manufacturing sharing contracts (PSCs) with the state-owned Petroliam Nasional Bhd, in keeping with its web site.
The PSCs cowl 2.four million acres offshore and have exploration and manufacturing phrases ranging as much as 38 years, Exxon stated its most-recent 10-Ok submitting.