ExxonMobil considering sale of Singapore petrol stations for US$1 billion: sources

THE largest bloc of petrol stations in Singapore may soon hit the market.

US energy major ExxonMobil – which is believed to have 59 petrol stations under the Esso brand in Singapore – is said to be considering a sale of these assets. The second-biggest player is Shell Singapore, which has 57 stations across the island. 

A sale by Exxon could raise about US$1 billion, according to a Bloomberg report.

A representative for the oil company told The Business Times: “As a matter of practice, we do not comment on market speculation.”

Exxon is working with financial advisers on the potential disposal, people interviewed by Bloomberg said. There is interest from other industry players and investment funds, although discussions are at a preliminary stage.

The potential sale of its petrol stations in Singapore follows similar divestments elsewhere.

In September last year, for instance, Exxon sold its majority stake in Esso Thailand – including its network of petrol stations – to Thai energy firm Bangchak Corporation. The deal was valued at about 20.1 billion baht (S$780.8 million).

The group said then that it was focusing its investments on global production facilities to meet the world’s demand for lower-emissions fuels and high-performance products.

In 2017, the oil major agreed to sell around 1,000 Esso petrol stations in Germany to UK-based EG Group, as part of a 20-year partnership deal.

The proposed divestment comes at a time when global demand for petrol has dipped, driven by a shift towards electric vehicles (EVs). 

Analysts told Reuters in May that global petrol demand growth could halve in 2024, with potentially the lowest growth since 2020.

BloombergNEF also said in a report released in August last year that oil consumption displaced by EVs could rise to over 20 million barrels per day by 2040.

In Singapore, The Straits Times noted in an article published in August this year that the number of petrol stations now stands at 184, down 17.1 per cent from a peak of 222 in 2003.

Meanwhile, the city-state’s EV population has surged, growing 60 per cent in the first seven months of 2024 to 19,098 vehicles. In that period, EVs accounted for nearly a third of new car registrations.