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Exxon sells Japanese marketing

The trend for oil majors shedding their downstream activities continues as ExxonMobil announces the restructuring of its Japanese refining and marketing operations.

The move will see ExxonMobil Yugen Kaisha being sold to the oil giant's Japanese partner, TonenGeneral Sekiyu K.K. in a deal worth around $3.9bn.  TonenGeneral will take a 99% stake in the business, while Exxon will reduce its overal share in TonenGeneral from 50% to just 22%.

ExxonMobil said it expected the restructuring to be "seamless" and that existing contracts would remain unchanged, with the current management remaining in place until the deal is completed in mid-2012.

The restructuring, which ExxonMobil claims will "result in a single, integrated downstream business better positioned to meet Japan’s energy needs", is another indication of the continuing trend that has seen many of the major oil producers - such as ConocoPhillips and Marathon - creating a clearer separation, or hiving off entirely, their downstream activities from upstream exploration.

ExxonMobil will retain a presence in Japan though specialist chemical production, marine lubes, LNG marketing and other upstream partnerships.

Tags: Asia, Corporate News, ExxonMobil

Published 9th February, 2012

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