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(Sept. 25): Exxon Mobil Corp has narrowed the list of bidders for its offshore oil assets in Malaysia that could raise between $ 2 billion and $ 3 billion in a sale, according to people with knowledge of the matter.
EnQuest Plc, which is listed in the UK, and Hibiscus Petroleum Bhd, which is listed in Kuala Lumpur, are among those chosen to make binding offers for the assets, the people said. Other companies have also expressed interest, said the people, who asked not to be identified as the discussions are private.
Exxon Mobil began the process to sell its Malaysian assets last year as part of its global divestment program, Bloomberg News reported. It produces oil and gas in the Southeast Asian nation under four production-sharing contracts with state-owned Petroliam Nasional Bhd, according to its website.
The US oil company’s assets in Malaysia include a 30% stake in the offshore Tapis Blend operations, which produce a low-sulfur crude that was once a benchmark for Asian oil refineries. The production-sharing contracts cover 2.4 million offshore acres and have exploration and production terms ranging up to 38 years, Exxon said in a presentation in 2019.
Deliberations are ongoing and bidders may not proceed with a bid, the people said. Representatives for EnQuest, Exxon and Hibiscus declined to comment.
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