Exxon to sell Esso Thailand to Bangchak Corp
ExxonMobil has reached an agreement with Thai refiner Bangchak Corp to sell its interest in Esso Thailand, which includes the Sriracha Refinery in a deal valued at about 20.1 billion baht ($603 million)., Exxon said in a release.
The Sriracha refinery site has an aromatics plant that can produce paraxylene, benzene and mixed xylenes. PX production at the site has ceased since April 2021.
The deal also includes select distribution terminals, and a network of Esso-branded retail stations,which will later be re-branded to Bangchak.
ExxonMobil said it would “continue to supply the Thailand market with branded finished lubricants and chemical products through a new company to be formed”, while it focuses its investment on global production facilities
The transaction will be executed by ExxonMobil’s affiliate, ExxonMobil Asia Holdings, which holds 65.99% interest in Esso Thailand. The deal will be funded by cash on hand and bank loans, Bangchak said, noting it would add a refining capacity of 174,000 barrels per day and 700 service stations.
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.
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.