UPDATE 1-Exxon, Shell advance in Newfield's Asia auction-sources

Thu Aug 15, 2013 3:29am EDT
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* Second-round bids due in mid-September

* Newfield is Malaysia's fourth-biggest oil producer

* All shortlisted parties on good terms with Petronas

* Newfield unloading older assets to invest closer to home

By Denny Thomas and Niluksi Koswanage

HONG KONG/KUALA LUMPUR, Aug 15 (Reuters) - Energy majors Exxon Mobil Corp and Royal Dutch Shell are among the suitors advancing to the next round of bidding for Newfield Exploration Co's Malaysian and Chinese oil and gas fields valued at about $1.2 billion, people familiar with the matter said.

Newfield and Hess Corp are among a number of U.S. energy companies unloading ageing and less productive oil and gas fields to invest in more strategic and profitable projects, particularly in and close to their home markets. The moves are driven in part by activist shareholders.

Nearly a dozen suitors were attracted to Newfield's auction that kicked off about two months ago. Newfield's advisor, Goldman Sachs, has whittled down to the list to at least four, inviting Canada's Talisman Energy Inc and KUFPEC, a unit of Kuwait Petroleum Corp, to submit second-round bids in mid-September along with Exxon and Shell, the people added.

"The management is of one mind and that is to sell the assets and refocus on North America," one person familiar with the matter told Reuters.   Continued...