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Exxon considers selling stake in LNG terminal offshore Italy
Global Banking & Finance Review®
Company
By Sabrina Valle and Francesca Landini
HOUSTON (Reuters) – Exxon Mobil Corp. is considering selling its majority stake in the Rovigo LNG terminal offshore Italy as part of a strategy to divest from non-core assets, the company said in a statement on Wednesday.
The terminal, also named, Adriatic LNG, is owned by Exxon’s subsidiary ExxonMobil Italiana Gas S.r.l. (70.7%), QatarEnergy subsidiary Qatar Terminal Company Limited (22%) and Snam Spa (7.3%). Snam has the right of first refusal should a partner decide to divest.
Exxon said that while it was verifying market interest, it had not made a decision about a potential sale nor has it identified a buyer at this early stage.
“Tests like this are consistent with our focused investment strategy, highlighting our willingness to divest non-core assets to those who can derive greater value,” Exxon spokesperson Meghan Macdonald said.
Any transaction would not impact Exxon’s imports of LNG into the Adriatic LNG terminal, nor its interest in the Italian and European markets as a natural gas supplier, the company said.
(Reporting by Sabrina Valle; Editing by Mark Porter, Kirsten Donovan)
LNG stands for liquefied natural gas, which is natural gas that has been cooled to a liquid state for easier storage and transport.
A majority stake refers to owning more than 50% of a company's shares, giving the owner significant control over the company's decisions.
Divestment is the process of selling off a subsidiary or investment, often to focus on core business areas or improve financial performance.
A subsidiary is a company that is controlled by another company, known as the parent company, which owns a majority of its shares.
Market interest refers to the level of demand or interest from potential buyers or investors in a particular asset or investment opportunity.
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