Bangchak acquires Esso Thailand bolstering network and refining capacity
In a significant move in Thailand’s petroleum sector, Bangchak Corporation secured a resounding acquisition of Esso Thailand. ExxonMobil Asia Holdings’ relinquishing of a 65.99% majority stake to Bangchak marks the completion of this transaction. As a consequence of this development, around 700 Esso petrol stations throughout the country will commence operations under Bangchak’s brand, starting tomorrow.
Chaiwat Kovavisarach, the Group CEO and President of Bangchak, confirmed that the company had completed the acquisition, with the monetary value of the ordinary shares of Esso pegged at 22.6 billion baht.
This acquisition signifies the culmination of Esso’s 129-year operation in Thailand. In the wake of this transition, a comprehensive rebranding of all Esso’s petrol stations as Bangchak’s is expected to take place within two years.
The acquisition has effectively bolstered Bangchak’s petrol refinery capacity, elevating it to 174,000 barrels per day. Additionally, it has amplified the company’s network of petrol stations, with the count increasing to approximately 800 locations across the country.
Looking ahead, Bangchak has charted ambitious plans for its future growth. The company aims to augment its refinery capacity to 294,000 barrels per day, which would position it as the largest oil refinery company in Thailand. Simultaneously, it envisions expanding its network of petrol stations to a staggering 2,200 locations.
Bangchak has also emphasised its commitment to supplying world-class petroleum products to the former Esso stations. The company prides itself on offering eco-friendly products, all of which have received quality certifications from the Department of Energy Business.
Just over a month before the Esso merger, Bangchak made headlines for its forward-looking strategy as it navigates the uncertain future of the oil refinery business, deeply impacted by the global push for electric vehicles. In an endeavour to address this dilemma, the corporation steered its focus towards the development of biofuel, known as sustainable aviation fuel (SAF), for aircraft, potentially a major source of revenue shortly.
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