DIVESTITURE
ExxonMobil sells its downstream operations in Thailand
ExxonMobil has reached an agreement with Bangchak Corporation to sell its interest in Esso Thailand Limited (ETL) that includes: the Sriracha Refinery, select distribution terminals, and over 700 Esso-branded retail stations. The transaction will be executed by ExxonMobil’s affiliate, ExxonMobil Asia Holdings Pte. Ltd, which holds 65.99% interest in Esso Thailand.
Bangchak entered into the share purchase agreement with ExxonMobil for the acquisition of 2,283,750,000 ordinary shares of ETL on 11 January 2023. Bangchak Corporation will subsequently launch a tender offer for the remaining ordinary shares of ETL after the completion of the transaction with ExxonMobil.
ExxonMobil will continue to supply the Thailand market with branded finished lubricants and chemical products through a new company to be formed. ExxonMobil’s upstream operations through its affiliate ExxonMobil Exploration and Production Khorat Inc., and ExxonMobil’s Bangkok Global Business Center, which employs about 2,000 people, will not be impacted.
“As we execute our strategy, ExxonMobil is focusing its investments on global production facilities to meet the world’s demand for lower-emissions fuels and high-performance products, while divesting assets where others see the potential for greater value,” said Karen McKee, president of ExxonMobil Product Solutions. “We appreciate the talent and determination of our colleagues in Thailand who have safely provided reliable product supply to the Thailand and the Greater Mekong markets for more than 125 years, and we thank them for their dedicated service.”
Mr. Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, said “This investment is a step towards greater energy security, balancing our long-term strategy with energy affordability and sustainability.
I believe this transformational transaction marks the beginning of a new chapter for BCP and for Thailand.”
With this acquisition, Bangchak will have a refinery with a capacity of 294 KBD and a network of 2,100 service stations.
The transaction is expected to close in the second half of 2023, subject to standard conditions and applicable legal requirements, including approval from regulatory authorities.