The bank will provide services to Hess in Southeast Asia, with the mandate covering Indonesia, Malaysia, Singapore and Thailand.
The Hess mandate will comprise of JPMorganÆs full suite of treasury services, which includes payments and receivables, liquidity, electronic banking and bank guarantee issuances. More importantly for JPMorgan, serving HessÆs cash management needs in Asia now means that the bank is its global primary cash management provider.
The deal between JPMorgan and Hess once again illustrates the trend for large companies to consolidate their regional cash relationships, which have become very pronounced in recent times. In 2005, the bank announced that it won a competitive bid to provide DuPont with a suite of cash services in 14 Asian markets.
ôConsistent with other markets where it operates, Hess was looking to consolidate itscash systems and relationships in Southeast Asia, and given our existing link, JPMorgan was thrilled to become their global primary cash management provider,ö says Simon Jones, head of corporate sales for JPMorgan treasury services in Asia-Pacific. ôIt is another step in the ongoing relationship between JPMorgan treasury services and Hess, and an important mandate for us regionally.ö
JPMorganÆs treasury relationship with Hess began several years back, with the bank handling its North America cash management requirements. Over time, the relationship evolved to include HessÆs European cash management business before JPMorgan won the right to the oil and gas companyÆs Southeast Asia business.
ôOur relationship with Hess is a great example of JPMorganÆs strength in providing solutions to the oil and gas industry in Asia. It represents one of many successful implementations of our global Paysource technology which provides seamless automated processing of payments from a clientÆs SAP systems,ö says Jones.
The New York-based Hess deals mostly in exploration, production, purchase, transportation and sale of crude oil and natural gas. It also manufacturers, purchases, trades and markets refined petroleum and other energy products. Within Southeast Asia, its exploration and production activities exist in Indonesia, Malaysia and Thailand.
According to JPMorgan, more regional oil and gas mandates are in the pipeline and will add to its existing strength in this sector in Asia.