Exxon Mobil Sells Malaysian Assets to Petronas

By Yantoultra Ngui and Florence Tan

SINGAPORE (Reuters) – Exxon Mobil Corp (NYSE:XOM) 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, according to two sources with direct knowledge of the matter.

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 as part of a strategy shift towards oil production in the Americas.

Petronas has assumed operations of Exxon’s assets, including Malaysia’s flagship Tapis oilfield in Terengganu, which began production in 1978, according to three sources.

As part of the deal, Exxon’s staff will be transferred to Petronas, one source stated.

Neither Petronas nor ExxonMobil responded to requests for comment, and the terms of the deal are not immediately known.

In an article posted on its website dated Nov. 12, 2023, Exxon stated that it remains a significant energy producer in Malaysia, contributing approximately 40% to 50% of Peninsular Malaysia’s crude oil and natural gas production.

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

These combined operations produce about 15% of Malaysia’s crude oil and condensate, totaling 600,000 barrels a day, and more than half of Peninsular Malaysia’s natural gas output, exceeding 2 billion cubic feet per day.

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