BANGKOK, Jan 12 — Thai energy conglomerate Bangchak is to buy a controlling stake in US energy giant ExxonMobil’s business in the kingdom, the two companies said Thursday.

The leading Thai energy firm will buy a 66 per cent stake in Esso Thailand (ETL) — at a final price to be determined later — from United States ExxonMobil, they said in a statement.

Bangchak said the agreement valued ETL at 55.5 billion baht (RM7.25 billion) in total and the sale is expected to be completed in the second half of 2023.

The deal will give Bangchak control of a major refinery, increasing its capacity by 174,000 barrels per day, as well as a network of 700 Esso-branded stations.

"This investment is a step towards greater energy security, balancing our long-term strategy with energy affordability and sustainability,” said Chaiwat Kovavisarach, Bangchak Group’s chief executive officer and president.

Bangchak said it would seek to buy the remaining shares — currently held by a range of Thai and foreign investors — after the ExxonMobil sale is completed.

ExxonMobil will retain a presence in Thailand through its finished lubricant and chemical products business, under a yet-to-be-formed company.

President of ExxonMobil Product Solutions Karen McKee said the company was focused on meeting demand for "lower-emissions fuels and high-performance products”.

ExxonMobil reported earnings of US$37.6 billion over the second and third quarters of 2022. — AFP