Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Exxon names BAML to run Malaysia asset sales: sources

Published 10/09/2019, 01:34 PM
Updated 10/09/2019, 01:34 PM
© Reuters. FILE PHOTO: Logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro

By Ron Bousso

LONDON (Reuters) - Exxon Mobil Corp (NYSE:XOM) has appointed Bank of America Merrill Lynch (NYSE:BAC) to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said.

The Malaysian assets, which include stakes in two large fields, are expected to fetch up to $3 billion, the sources said.

Exxon is exploring a sale of its Malaysian oil-and-gas producing assets, among a number of other properties worldwide, confirmed spokeswoman Julie King.

The oil major has no agreements with potential buyers for the Malaysian properties and will continue to operate the fields as it explores their sale, she said. Exxon has said it aims to sell $15 billion in assets by 2021.

Bank of America declined to comment.

Irving, Texas-based Exxon has ramped up sales of assets around the world in recent months. Those it has offered or sold include production in Norway, Australia, Nigeria, Azerbaijan and Britain.

In Malaysia, Exxon operates 35 oil and gas platforms in 12 offshore fields and has working interests in another 10 platforms in five fields in the South China Sea, according to its website.

The operations produce 15% of Malaysia's oil output of 600,000 barrels per day and half of its natural gas output of over 2 billion cubic feet per day.

The fields are operated under a 50% and 78% stake in two large production sharing contracts (PSC), consultancy WoodMackenzie said in a note.

"The Malaysian assets are both operated and generally highly mature, with a significant amount of ageing infrastructure. A buyer will need to have strong operating credentials, and be recognised by (Malaysian national oil company) Petronas to be a suitably qualified and reputable operator," one banker said.

© Reuters. FILE PHOTO: Logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro

Exxon, which has operated in Malaysia for more than 125 years, will continue to operate other businesses in the country after any sale. It runs two support centers in Kuala Lumpur for its upstream, fuels, lubricants and chemicals manufacturing and for information technology support. It also is a provider of polyethylene to the Malaysian market.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.