San Miguel acquires Exxon Mobil's downstream business in Malaysia

Diversified conglomerate San Miguel Corp. acquired the downstream petroleum business of US-based oil giant Exxon Mobil in Malaysia. In a statement to the Philippine Stock Exchange on Thursday, San Miguel said it would pay $610 million to acquire 65 percent of Esso Malaysia Bhd (EMB), and the entire ExxonMobil Malaysia Sdn Bhd (EMMSB), and Exxon Mobil Borneo Sdn BHd (EMBSB). The three subsidiaries are engaged in refining, distributing and marketing petroleum products. Their physical assets include the Port Dickson refinery with a related capacity of 88,000 barrels a day; seven fuel distribution terminals; and a network of about 560 branded service stations, of which 420 are company-owned. In selling its downstream business in Malaysia, Exxon Mobil said it would focus its Malaysian business in upstream, chemicals, lubricants, and global business support. “Exxon Mobil’s Malaysian downstream business is attractive to San Miguel given that there is plenty of room to move up the value chain by upgrading refinery capabilities," said Ramon S. Ang, San Miguel president and chief operating officer. “Our plan would be to upgrade the Port Dickson refinery so that it can make use of a wider variety of crudes, and produce higher-value products." Ang added. Ang also said the acquisition provides San Miguel with an opportunity to “expand" in the regional oil and gas sector. Through subsidiary Petron Corp., San Miguel is the largest oil refiner in the Philippines with a crude distillation capacity of 180,000 barrels per day. Petron operates a network of over 1,700 service stations in the Philippines. - CMA/OMG, GMA News