San Miguel Corporation, the parent company of Petron Corporation, is making its mark as a petroleum leader in the region with its expansion in Malaysia through the acquisition of three subsidiaries comprising Exxon Mobil’s downstream oil business in Malaysia.
Esso Malaysia Bhd, ExxonMobil Malaysia Sdn Bhd, and Exxon Mobil Borneo Sdn Bhd have been purchased by San Miguel Corporation for a reported $610 million.
Physical assets include the Port Dickson refinery with a rated capacity of 88,000 barrels per day; seven fuel distribution terminals; and a network of roughly 560 branded service stations, 420 of which are company-owned.
San Miguel Corporation is the largest integrated oil refining and marketing company in the country, through its petroleum brand Petron Corporation. Petron operates a network of over 1,700 service stations in the Philippines and is presently undertaking a major upgrade of its refinery that will allow full conversion of the fuel oil production to higher-value products such as gasoline, diesel, and petrochemicals.
“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 SMC President and Chief Operating Officer Ramon S. Ang. “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 further said SMC will continue to uphold world-class product quality, safety and environmental standards. “This acquisition provides us with a unique opportunity to expand our participation in the regional oil and gas sector, and we will focus our efforts not just on upgrading refinery capabilities, but expanding reach into underserved areas in the fuels market.”
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