International Finance
Oil & Gas

Exxon appoints Bank of America to execute Malaysian assets sale

Exxon Malaysian assets sale
It operates 35 oil and gas platforms in 12 offshore fields in the country

American multinational Exxon Mobil has appointed Bank of America Merrill Lynch to execute its Malaysian oil and gas assets sale, according to media reports. 

Spokesperson Julie King told the media that Exxon is exploring potential opportunities for its Malaysian oil and gas assets sale, in addition to other properties globally. According to the reports, Exxon plans to sell $15 billion worth of assets by 2021. 

Currently, Exxon has no sale opportunities in the pipeline—and will continue to operate the fields till a deal takes place. 

The company operates 35 oil and gas platforms in 12 offshore fields in Malaysia. In addition, it has working interests in 10 platforms in five fields in the South China Sea. 

Exxon’s operations produce 15 percent of Malaysia’s 600,000 barrels per day oil output and half of its natural gas output of more than 2 billion cubic feet per day. 

WoodMackenzie said in a note that, “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.” 

In recent months, Exxon has increased efforts in assets sales worldwide. Exxon assets have been offered or sold to oil  producing companies in Norway, Australia, Nigeria, Azerbaijan and Britain.

Exxon has operated in Malaysia for more than 125 years. Media reports said that the company will continue to operate other businesses in Malaysia after a sale takes place. It operates two support centres in Kuala Lumpur for upstream, fuels, lubricants and chemicals manufacturing. 

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