Exxon Mobil Corp Exits Malaysian Oil and Gas Sector, Sells Assets to Petronas
In a significant move, Exxon Mobil Corp has agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, marking its exit from the country’s upstream sector. The deal includes the transfer of operations for two production-sharing contracts located offshore peninsular Malaysia, including the renowned Tapis oilfield in Terengganu.
Exxon, which has been a dominant producer in Malaysia for over 130 years, has been looking to sell its ageing assets in the country since 2020 as part of a strategic shift towards focusing on oil production in the Americas. The terms of the deal have not been disclosed yet.
Petronas, in response to a Reuters query, confirmed that its subsidiary, Petronas Carigali Sdn Bhd, is currently in discussions with ExxonMobil regarding the transfer of operations. The state energy firm emphasized its commitment to safe operations and ensuring a reliable energy supply for customers throughout the transition process.
Exxon’s staff will be transferred to Petronas as part of the agreement. The U.S. major’s operations in Malaysia have been significant, contributing a substantial portion to the country’s crude oil and natural gas production. With this deal, Petronas will take over the mantle and continue to play a key role in Malaysia’s energy sector.
The move represents a significant shift in the Malaysian oil and gas landscape, with Petronas strengthening its position as a key player in the industry. Stay tuned for further updates on this developing story.
