Asia Braces for Impact of Exxon, Mobil Link
Asia's oil sector is preparing itself for the impact of Exxon's multi-billion dollar merger with Mobil, analysts and industry sources say.
The United States government this month approved Exxon Corp's US$82 billion purchase of its rival Mobil Corp to create the world's largest publicly traded oil company.
A regulatory condition allowing the merger was that the new company sell US$2 billion in assets in the United States.
A spokeswoman for Esso Singapore, a unit of Exxon, culled speculation that one of the refineries would be shut down because weak profit margins were forecast for several years to come.
She said Exxon Mobil Corp would operate both their refineries in Singapore, which have a total refinery capacity of 570,000 barrels per day (bpd).
"We consider both refineries as world-class refineries. Both will be retained and we will operate both refineries," she said.
The combined operation would dominate the Singapore sector taking up around half of the combined capacity of around 1.2 million bpd. Royal/Dutch Shell operates a 435,000 bpd refinery and Singapore Refining Co a 285,000-bpd complex.
Singapore acts as a barometer for Asian refining because it is the most sensitive to international price swings. …