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 terms of the deal were not immediately known.
The U.S. major, which last year marked its 130th year in Malaysia, has been trying to sell its aging 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 Exxon Mobil did not respond to requests for comment.
RELATED
WoodMac: Are MidEast, Asia NOCs Poised For M&A Resurgence?
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.
RELATED
Southeast Asia NatGas Projects Could Unlock $100B Boom- Rystad
Recommended Reading
CEO: Berry Gears Up for Horizontal Drilling in Uinta Stacked Pay
2024-12-13 - Berry Corp.’s legacy roots are in California’s Central Valley—but its growth engine is in Utah’s emerging Uinta Basin, CEO Fernando Araujo told Hart Energy.
Shale Outlook Uinta: Horizontal Boom to Continue in 2025
2025-01-11 - After two large-scale transactions by SM Energy and Ovintiv, the Uinta Basin is ready for development—and stacked pay exploration.
Early Innings: Uinta’s Oily Stacked Pay Exploration Only Just Starting
2025-03-04 - Operators are testing horizontal wells in less developed Uinta Basin zones, including the Douglas Creek, Castle Peak, Wasatch and deeper benches.
More Uinta, Green River Gas Needed as Western US Demand Grows
2025-01-22 - Natural gas demand in the western U.S. market is rising, risking supply shortages later this decade. Experts say gas from the Uinta and Green River basins will make up some of the shortfall.
PRB’s Sage Butte Ready for M&A Across Lower 48, Maybe Canada Too
2025-01-08 - Private E&P Sage Butte Energy, which operates in the Powder River Basin, is less interested in the Permian Basin, citing the cost of entry.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.