Carlyle chasing energy assets

Carlyle Group has emerged as the global private equity fund vying for ExxonMobil’s downstream energy assets and Altona refinery, as bidders prepare their final bids for the assets on December 16.

It is understood ExxonMobil is self-advised on the selldown and had reached out to about 20 parties about the assets.

The understanding is the buyer pool is limited due to local industry participants likely to be prevented from buying the assets by the Australian Competition & Consumer Commission.

As revealed by this column last week, the US-based oil giant is selling not only its $US3bn-odd portfolio of upstream oil and gas assets in the Bass Strait, but its downstream assets as well.

The refinery and other downstream assets such as tanks and trucks to supply petrol stations throughout Australia are expected to net Exxon an additional $800m.

Carlyle joins Japan’s Idemitsu and a joint venture between Macquarie Group and BP and at least one Chinese party in bidding for the assets.

Altona Refinery, based in Victoria, produces several refined petroleum products including unleaded petrol, diesel and jet fuel.

It produces more than 14 million litres of refined fuel products daily, which is enough to fill about 330,000 cars.

It is understood ExxonMobil is keen to conclude the sales process for its downstream assets before it gears up for the divestment of its upstream assets through adviser JPMorgan.

ExxonMobil owns a 50 per cent interest in the Gippsland Basin Joint Venture with resources giant BHP, which is also a potential seller.