Esso exits Thailand market after 129 years

[webfact]

BANGKOK (NNT) - Petroleum company Esso Thailand has been acquired by Bangchak, following the completion of a majority stake acquisition by ExxonMobil. Esso’s petrol stations across the country will be operating under Bangchak’s brand from tomorrow.

 

The acquisition of Esso Thailand by Bangchak Corporation is now complete, with the Thailand-based petroleum company acquiring a 65.99% majority stake in Esso Thailand from ExxonMobil Asia Holdings. Following the completion of this deal, some 700 Esso’s petrol stations across the country will start operating under Bangchak’s brand.

 

Mr. Chaiwat Kovavisarach, Group CEO and President of Bangchak, said the company had completed the 22.6 billion baht acquisition of Esso’s ordinary shares.

 

This acquisition marks the end of Esso’s 129-year operations in Thailand, with all Esso’s petrol stations being completely rebranded as Bangchak’s within 2 years.

 

This deal helped Bangchak increase its total petrol refinery capacity to 174,000 barrels per day and expanded its network of petrol stations to some 800 locations across the country.

 

The company now plans to increase its refinery capacity to 294,000 barrels per day, effectively making it the largest oil refinery company in Thailand, and expanding its network of petrol stations to 2,200 locations.

Bangchak will be supplying its world-class petroleum products to former Esso stations. The company says all its products are eco-friendly and have received quality certifications from the Department of Energy Business.

by Tanakorn Sangiam

Source: https://thainews.prd.go.th/en/news/detail/TCATG230901091223020

 

-- NNT 2023-09-01

 

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[KhunBENQ]

About >two months< ago they completed a takeover and rebuild of a private pump station in our area and now a shining Esso station

[SoilSpoil]

PTT killed all competition.

[circa02]

It's pretty much all the same now BangChak with Inthanin coffee, or PTT with 7/11 and Amazon. Getting rarer to see a forecourt with independent coffee shops and 40-50baht eateries unless you're driving out of town..

[BenStark]

@JBChiangRai Thanks for providing a link to something that is common knowledge.

 

Now where is the evidence that, the probably Chinese EV, you own has an LFP battery?

[JBChiangRai]

7 minutes ago, BenStark said:

@JBChiangRai Thanks for providing a link to something that is common knowledge.

 

Now where is the evidence that, the probably Chinese EV, you own has an LFP battery?

here you go

[edwinchester]

2 hours ago, KhunBENQ said:

About >two months< ago they completed a takeover and rebuild of a private pump station in our area and now a shining Esso station

Yes, exactly the same near us or do you live near Thalad Khet, Kanchanaburi too?

[howerde]

wonder if you will still get the free water?

[kennw]

6 minutes ago, howerde said:

wonder if you will still get the free water?

Wonder if the Esso member card will still be accepted by Bangchat because currently Bangchat will not issue one to non-Thais. If not then I will not use the new Bangchat. 

[howerde]

1 minute ago, kennw said:

Wonder if the Esso member card will still be accepted by Bangchat because currently Bangchat will not issue one to non-Thais. If not then I will not use the new Bangchat. 

Last time i filled up they said use all your points up before September, might try shell if they won't let me have a member card

[george]

What perks/discounts do you get on a member Card?

[watchcat]

55 minutes ago, SoilSpoil said:

PTT killed all competition.

So did CP GROUP.

[John Drake]

4 minutes ago, watchcat said:

So did CP GROUP.

Don't worry. PTP and Srettha are going to be taking care of monopolies. 

[billd766]

1 hour ago, SoilSpoil said:

PTT killed all competition.

No they didn't. Out here in rural Kamphaeng Phet in the big village 6 km away there are 5 gas stations, none of whom are PTT.

 

The nearest PTT station is about 16 km away and I would have to pass 10 or 11 gas stations (including 2 Esso stations) to get to PTT.

[ExpatOilWorker]

4 hours ago, webfact said:

The company now plans to increase its refinery capacity to 294,000 barrels per day, effectively making it the largest oil refinery company in Thailand, and expanding its network of petrol stations to 2,200 locations.

Take that EV evangelists!

[SoilSpoil]

31 minutes ago, billd766 said:

No they didn't. Out here in rural Kamphaeng Phet in the big village 6 km away there are 5 gas stations, none of whom are PTT.

 

The nearest PTT station is about 16 km away and I would have to pass 10 or 11 gas stations (including 2 Esso stations) to get to PTT.

Maybe you ought to get out of your village in the middle of nowhere more often. PTT is by far tge biggest gas station in Thailand pushing all competition of the map. 

[Burma Bill]

1 hour ago, howerde said:

wonder if you will still get the free water?

Thanks for reminding me. The main petrol station where I lived near Nong Rua (Khon Kaen) was ESSO. PTT and PT were out of town. This ESSO station was the only one that gave a free 1.5 litre bottle of drinking water at that time when you purchased 1000 baht of fuel. Not much, I know, but useful on long journeys when the other outlets gave you s-d all! PTT stations were just comfort breaks for me (7-11 and toilets), not for filling up with fuel.

Edited September 1, 2023 by Burma Bill
additional information

[kimamey]

4 hours ago, KhunBENQ said:

About >two months< ago they completed a takeover and rebuild of a private pump station in our area and now a shining Esso station

There's a new one near where my wife works on the road into Roi Et from the west. I'm sure that's Esso.

[ExpatOilWorker]

17 minutes ago, Burma Bill said:

Thanks for reminding me. The main petrol station where I lived near Nong Rua (Khon Kaen) was ESSO. PTT and PT were out of town. This ESSO station was the only one that gave a free 1.5 litre bottle of drinking water at that time when you purchased 1000 baht of fuel. Not much, I know, but useful on long journeys when the other outlets gave you s-d all! PTT stations were just comfort breaks for me (7-11 and toilets), not for filling up with fuel.

You need to get yourself a PTT blue card. Free coffee ☕️ ????. 

 

[Srikcir]

4 hours ago, webfact said:

This deal helped Bangchak increase its total petrol refinery capacity to 174,000 barrels per day

Esso's crude oil refining capacity in Thailand 2021 was 177,000 BPD. Bangchak was 120,000 BPD.

www.statista.com

So maybe with acquisition of Esso refinery Bangchak increases its output by 177,000 BPD based on 2021 outputs?

For a total of 297,000 BPD based on 2021 outputs that would place Bangchak #1 in Thailand's crude oil refinery vs RRC/PTTAR/PTTCC at 280,000 BPD, moving from 6th place (2021). Hence:

• The company now plans to increase its refinery capacity to 294,000 barrels per day, effectively making it the largest oil refinery company in Thailand.

Anyone remember this acquisition being actively reviewed and approved by the Thailand SEC with public comment as now two refinery owners appear to control the Thailand crude oil refinery industry?

All I could find is that " ... Bangchak sent the acquisition intimation (sic) to the Securities and Exchange Commission on Monday (August 28)." ref. September 1, 2023  https://www.nationthailand.com

 

[tgw]

damn, shocking news.
will "soi Esso" get a new name ?

[Dazinoz]

54 minutes ago, ExpatOilWorker said:

Take that EV evangelists!

Need the extra fuel to fuel the heavy mining equipment to mine the materials required to make the cars, especially the batteries and fuel to the power stations to provide electricity to charge the EV cars. And before you comment on solar an wind, do your research how much of what I have already mentioned goes into their production.

[billd766]

29 minutes ago, SoilSpoil said:

Maybe you ought to get out of your village in the middle of nowhere more often. PTT is by far tge biggest gas station in Thailand pushing all competition of the map. 

Instead of talking about me why not stick to the topic that PTT has killed all the competition.

 

That cannot be true if Bangchak has bought out the Esso chain

[wolf81]

Interesting to see so many Western/foreign companies leave in the last couple of years.

 

MAKRO, Lotus, 7-Eleven, Carrefour, now Esso ...

 

Wonder if at some time companies like Shell and Unilever follow suit.

 

I'm suspecting these companies leave because Thailand makes it hard for them to do business here? But not sure.

 

Will reduce competition though and that cannot be a good thing.

Edited September 1, 2023 by wolf81

[Jaggg88]

2 hours ago, george said:

What perks/discounts do you get on a member Card?

[RichardColeman]

I guess their profits went down when Mr. DIY started selling plastic , air swerving footballs 

[LittleBear57]

On 8/30/2023 at 6:33 PM, mfd101 said:

Good luck with that.

 

Government subsidies merely distort the market (both supply & demand) and 'benefit' (in the short term) the rich as well as the poor. They also distort or kill the evolution to alternative means of transport (eg in Thailand's case, decent railways both inter- and intra-city).

 

[SoilSpoil]

3 hours ago, billd766 said:

Instead of talking about me why not stick to the topic that PTT has killed all the competition.

 

That cannot be true if Bangchak has bought out the Esso chain

I am not talking about you, I am responding to your comment. The world doesn't revolve around you mr Bild!

[billd766]

15 minutes ago, SoilSpoil said:

I am not talking about you, I am responding to your comment. The world doesn't revolve around you mr Bild!

Nor does it revolve around you. PTT may have killed all the competition around where you live, but if you read the comments they have not killed the competition across the whole of Thailand.

 

The nearest PTT station to me is about 16 km away and the next nearest is on the route 1 about 60 km to the north east or at Klong Meelai about 70 km to the south east.

 

There are plenty of PTT stations on the main highways, and IIRC plenty in the bigger cities, but far fewer in the rural parts of Thailand, which cover a far greater area, once you get out of the cities and off the highways. There are more customers but also more choice of gas stations ranging from ones the size of PTT down to little Mom and Pop shops selling gasoline in bottles and from 200 litre barrels.

 

They are mainly supplied by independent companies. The turnover is not as high, but neither are their expenses.

[Skeptic7]

Made a lot of money in XON/XOM. Kinda nostalgic, but gas is gas. "Dem tung" regardless of the name on the pump. ⛽