Exxon Mobil Corp is exploring a sale of its fuel station network in Hong Kong, according to people familiar with the matter, as the US oil and gas giant continues to trim its retail footprint globally.
The company, which operates under the Esso brand, may seek a valuation of US$500 million (RM1.9 billion) to US$600 million for the assets, one of the people said. Considerations are ongoing and no final decisions have been made, the people added.
The potential divestment comes at a time of uncertainty for the retail fuel industry. While gas stations have historically provided stable cash flows, the business is facing renewed pressure from extreme volatility in crude markets following the outbreak of the Iran war.
ExxonMobil has a global strategy to streamline assets and has appointed advisers to handle a series of sale of its downstream retail sites under the Esso brand in markets including France, New Zealand and Hong Kong, one of the people said.
Last October, the company agreed to sell its Esso-branded service stations in Singapore to PT Chandra Asri Pacific Tbk. Exxon currently has 39 Esso-branded gas stations in Hong Kong, according to its website.
Full story Exxon Mobil Said to Consider Sale of Hong Kong Gas Stations | I3investor
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