Exxon Mobil is in advanced discussions to divest its Hong Kong fuel station network, with sources indicating the deal could be valued between $500 million and $600 million.
The U.S. energy giant has appointed a financial adviser and is engaging four to five potential bidders, including commodity trading houses, according to people familiar with the matter.
The talks, reported on Wednesday, come as Hong Kong’s downstream fuel market undergoes consolidation and transition pressures linked to electrification trends.
Exxon operates about 41 service stations in the city under its Esso brand, maintaining a presence that dates back to its first station in Kowloon in 1926.
Any sale would mark a significant reshaping of its regional retail footprint and could attract a premium valuation given its scale compared to recent transactions.
The move follows a February agreement by Bangchak Corporation to acquire Chevron’s Hong Kong fuel business for $270 million, underscoring rising deal activity in the sector.
Industry dynamics have been further complicated by volatility in global oil markets, partly driven by geopolitical tensions affecting supply routes such as the Strait of Hormuz.
These disruptions have led to price swings, creating uncertainty around asset valuations while prompting companies to reassess portfolio strategies.
Exxon recently flagged that its first-quarter earnings could decline due to hedging and accounting impacts, despite stronger oil and gas prices.
The potential divestment highlights how major oil firms are repositioning amid energy transition pressures and evolving market conditions in Asia’s key fuel hubs.