Thai energy conglomerate Bangchak is to buy a controlling stake in US energy giant ExxonMobil's business in the kingdom, the two companies said Thursday.

The leading Thai energy firm will buy a 66 percent stake in Esso Thailand (ETL) -- at a final price to be determined later -- from United States ExxonMobil, they said in a statement.

Bangchak said the agreement valued ETL at 55.5 billion baht ($1.6 billion) in total and the sale is expected to be completed in the second half of 2023.

The deal will give Bangchak control of a major refinery, increasing its capacity by 174,000 barrels per day, as well as a network of 700 Esso-branded stations.

"This investment is a step towards greater energy security, balancing our long-term strategy with energy affordability and sustainability," said Chaiwat Kovavisarach, Bangchak Group's chief executive officer and president.

Bangchak said it would seek to buy the remaining shares -- currently held by a range of Thai and foreign investors -- after the ExxonMobil sale is completed.

ExxonMobil will retain a presence in Thailand through its finished lubricant and chemical products business, under a yet-to-be-formed company.

President of ExxonMobil Product Solutions Karen McKee said the company was focused on meeting demand for "lower-emissions fuels and high-performance products".

ExxonMobil reported earnings of $37.6 billion over the second and third quarters of 2022.

AFP