By US oil major Exxon Mobil Corp is planning a sale of its petrol stations in Singapore in a deal that could raise about $1 billion, Bloomberg reported on Tuesday, citing sources.
A sale would allow Exxon to deploy the cash in other business segments with higher growth prospects, according to the report.
The report also noted that players in the energy sector and investment finds had also shown interest in the sale.
Exxon has about 59 petrol stations across Singapore under its Esso brand, according to Esso’s website.
Second big divestment in recent months
If the sale is completed, it would become the oil major’s second divestment in Southeast Asia in recent months.
Reuters reported in July that Exxon had agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, exiting the country’s upstream sector where it used to be a dominant producer
In Singapore, the company has been operating for more than 130 years.
In the country, the company has a refining complex, a lubricant plant, a fuels terminal and liquefied petroleum gas bottling plant.
The sale could also mirror similar attempts by other oil majors such as Chevron Corp.
Chevron Corp has been considering a sale of all of its Caltex-branded service stations in Hong Kong amid interest from prospective investors, Bloomberg reported.
Shallow-water block in Guyana
Meanwhile, Exxon Mobil and its partners in Guyana, US Hess Corp and China’s CNOOC have been discussing with the local government to develop a shallow-water block, Reuters reported.
The block was won in an auction in 2022.
Exxon and its partners have been pumping all the crude oil in Guyana, with production currently more than 600,000 barrels per day. The production is concentrated in one offshore block, the Stabroek Block.
The consortium is also interested in developing a shallow-water block offshore the South American country, according to the report.
The offshore block has become the world’s newest oil producer, especially because of Exxon and its partners that developed several producing platforms in Stabroek.
Revenues surge from offshore block in Guyana
Since the discovery of the offshore block in Guyana, Exxon and its partners have received billions of dollars in revenues and profits.
Production from the block has surged and is now above the 600,000 barrels per day level.
The company is focused on increasing production to over 1 million barrels per day from the offshore block, according to the report.
Total oil production in the country is seen rising to over 1.6 million barrels per day by 2030, as the government seeks to maximize returns from the industry before the predicted demand growth peak.
If the peak demand predictions fail to materialize, the outlook for Guyana’s oil industry is even brighter, according to the report.
The post Exxon eyes $1 billion sale of Singapore petrol stations to focus on high-profit sectors appeared first on Invezz
