ExxonMobil Selling Malaysia Oil and Gas Assets to Petronas

Friday, July 19, 2024

Exxon Mobil has agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, exiting the country's upstream sector where it used to be a dominant producer, two sources with direct knowledge of the matter said.

The U.S. major, which last year marked its 130th year in Malaysia, has been trying to sell its ageing upstream assets in the country since 2020, Malaysian media have reported, part of a shift in its strategy to focus on oil production in the Americas.

Petronas has taken over operations of Exxon's assets, including the country's flagship Tapis oilfield in Terengganu which began production in 1978, three sources said.

Exxon's staff would be transferred to Petronas as part of the deal, one of the sources said.

Petronas and ExxonMobil did not respond to requests for comment

The terms of the deal were not immediately known.

In an article posted on its website dated Nov. 12, 2023, Exxon said it remained a significant energy producer in Malaysia, contributing about 40% and 50%, respectively, to Peninsular Malaysia's crude oil and natural gas production.

The company operates 35 oil and gas platforms in 12 fields offshore Terengganu, and has a working interest in another 10 platforms in five fields in the South China Sea.

The combined operations produce about 15% of Malaysia's crude oil and condensate of 600,000 barrels a day, and more than half of peninsular Malaysia's natural gas of more than 2 billion cubic feet per day.

Its last major investment in the country was in a $2.5 billion enhanced oil recovery project at the Tapis field, which started up in late 2014.


(Reuters - Reporting by Yantoultra Ngui and Florence Tan; additional reporting by Trixie Yap in Singapore, Ron Bousso in London, and Rozanna Latiff in Kuala Lumpur; Editing by Tony Munroe and Susan Fenton)

Categories: Industry News Activity Asia Oil and Gas

Related Stories

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Turkey Discovers New Black Sea Gas Reserve

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

Current News

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Petronas, Inpex Secure Oil and Gas Exploration Rights off Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com