ExxonMobil to sell Malaysia oil and gas assets to Petronas: sources

Exxon Mobil Sells Malaysian Oil and Gas Assets to Petronas

SINGAPORE - Exxon Mobil Corp has finalized an agreement to sell its Malaysian oil and gas assets to state-owned Petronas, marking an exit from a sector where it once dominated, according to sources with direct knowledge of the situation. This move aligns with Exxon's broader strategy to concentrate on oil production activities in the Americas.

Petronas, Malaysia's national energy company, will now manage Exxon's former assets, including the prominent Tapis oilfield located in Terengganu, which has been operational since 1978. As part of this transition, Exxon's staff will be transferred to Petronas. However, specific terms of the deal were not disclosed, and both companies have not commented on the agreement.

ExxonMobil's presence in Malaysia, which celebrated its 130th anniversary last year, has been substantial. The company has been responsible for around 40% of Peninsular Malaysia's crude oil production and 50% of its natural gas output. Exxon's operations include 35 oil and gas platforms across 12 fields offshore Terengganu and interests in an additional 10 platforms across five fields in the South China Sea. Combined, these operations contribute approximately 15% of Malaysia's crude oil and condensate production, which totals around 600,000 barrels per day, and more than half of the peninsula's natural gas production, exceeding 2 billion cubic feet per day.

Exxon's last significant investment in Malaysia was a $2.5 billion enhanced oil recovery project at the Tapis field, which commenced in late 2014.