FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes/File Photo
LONDON (Reuters) – Exxon Mobil has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said.
The Malaysian assets, which include stakes in two large fields, are expected to fetch over $2 billion, the sources said.
Exxon did not respond to a request for comment. Bank of America declined to comment.
Irving, Texas-based Exxon has ramped up sales of assets around the world in recent months with the goal of raising $15 billion from disposals by 2021. Those include production in Norway, Australia, Nigeria, Azerbaijan and Britain.
Exxon operates in Malaysia 35 oil and gas platforms in 12 offshore fields and has working interests in another 10 platforms in five fields in the South China Sea, according to its website.
The operations produce 15% of Malaysia’s oil output of 600,000 barrels per day and half of its natural gas output of over 2 billion cubic feet per day.
The fields are operated under a 50% and 78% stake in two large production sharing contracts (PSC), consultancy WoodMackenzie said in a note.
“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 recognized by (Malaysian national oil company) Petronas to be a suitably qualified and reputable operator,” one banker said.
Reporting by Ron Bousso, Anshuman Daga and Florence Tan in Singapore and Gary McWilliams in Houston; Editing by Alexandra Hudson