Exxon Selling 19% Sinopec Stake
Exxon Mobil Corp. said it is selling its 19 percent stake in China oil refiner Sinopec after achieving its expected goals through the deal.
The value of the deal has yet to be determined because the sale is in progress.
However, Irving, Texas-based Exxon Mobil, the world's biggest company by market value, is selling 3.17 billion shares likely to bring in 1.37 billion to 1.4 billion dollars.
Use of the proceeds is likely to be a topic of discussion for the first-quarter report, said Lauren Kerr, a spokeswoman for Exxon Mobil.
"Our original objectives were to demonstrate our commitment to China and to support Sinopec's IPO, and those objectives have been achieved," Kerr said.
"We remain strongly committed to China and Sinopec and are pleased with our ongoing partnerships with Sinopec."
Exxon Mobil is working with Sinopec and Saudi Aramco on the Fujian project, a 3.5 billion dollar expansion of an existing refinery and the addition of a petrochemical complex.
Exxon Mobil is also working with those partners on a joint feasibility study for a fuels marketing joint venture. And, it is in discussions with Sinopec to build an integrated refining complex in Guangdong.
(CRI Mar. 2005)