Exxon selling stake in Esso Thailand as focus increases on Guyana, other lower-emissions assets

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ExxonMobil Corporation announced it has reached an agreement with Bangchak Corporation to sell its interest in Esso Thailand. This includes the sale of a refinery, select distribution terminals, and a network of Esso-branded retail stations. 

Exxon said this transaction is in keeping with its commitment to strengthen value and ensure overall competitiveness. It intends to achieve this by focusing on assets that meet the world’s demands for lower-emissions fuels. In this regard, Exxon has placed heightened interest and investments in Guyana’s Stabroek Block where it is the operator and has discovered 11 billion barrels with low breakevens. 

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The company is currently awaiting government approval for a fifth project at the Uaru field. Along with four other sanctioned projects, Exxon is expected to develop almost four billion barrels in 20 years.

Karen McKee, President of ExxonMobil Product Solutions noted that the company’s decision is also in keeping with its intent to drive investments in key global production facilities that meet global demand for high-performance products. 

 “We appreciate the talent and determination of our colleagues in Thailand who have safely provided reliable product supply to the Thailand and Greater Mekong markets for more than 125 years, and we thank them for their dedicated service,” McKee said.

ExxonMobil noted that it will continue to supply the Thailand market with branded finished lubricants and chemical products through a new company to be formed. It stressed that 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.  

Exxon said the transaction will be executed by its affiliate, ExxonMobil Asia Holdings Pte. Ltd, which holds 65.99% interest in Esso Thailand. It will close this deal in the second half of 2023, subject to standard conditions and applicable legal requirements, including regulatory approvals.

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