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Exxon Mobil mulling disposal of Malaysian assets: Bloomberg
Posted on Wednesday, 09 October 2019 13:36
Exxon Mobil is weighing a sale of its Malaysian upstream offshore operations for between USD 2.00 billion and USD 3.00 billion, Bloomberg reported, citing people familiar with the situation, in the latest development of its planned USD 15.00 billion asset divestiture scheme.

The US-based oil and gas giant has already begun the process of sounding out buyers, which are likely to include other large energy businesses, the insiders noted.

According to the sources, while a sale is strongly being considered by Exxon Mobil, talks are still preliminary and therefore there can be no guarantee of a deal being made.

In addition, Bloomberg cited insiders in a separate report that the company is also working with Jefferies to consider options for its UK North Sea assets that could raise another USD 2.00 billion.

Over the last month alone, Exxon Mobil has made headlines regarding the sales of its 50.0 per cent stake in the Gippsland Basin oil and gas development in Australia’s Bass Strait for around USD 3.00 billion and the possible USD 5.00 billion disposal of its Asia Pacific operations.

The group’s aim is to offload USD 15.00 billion worth of assets by 2021, which so far have included the USD 4.50 billion divestment of its Norwegian offshore oil and gas field assets to Var Energi in September.

Exxon Mobil produces oil and gas in Malaysia under four production sharing contracts with State-owned Petroliam Nasional.

Zephyr, the M&A database published by Bureau van Dijk, shows there has been one other Malaysian oil and gas group targeted in a deal in 2019 to date.

This involved Tan Sri Halim Saad selling a 4.6 per cent in Sumatec Resources to investors for MYR 1.10 million (USD 262,033).

Globally, 861 deals featuring oil and gas companies have been announced worldwide so far this year, two of which were worth more than USD 10.00 billion.

The top two transactions are linked, as Occidental Petroleum will receive USD 10.00 billion in funding from Berkshire Hathaway in the second-largest of these, contingent on the group’s planned USD 55.00 billion takeover of Anadarko Petroleum in the biggest acquisition in the year to date.

© Zephus Ltd