By Yantoultra Ngui and Florence Tan
SINGAPORE (Reuters) – ExxonMobil Corp (NYSE:) has agreed to sell its Malaysian oil and gas assets to state energy company Petronas, leaving the country’s upstream sector where it was previously a dominant producer, two sources with direct knowledge of the matter said.
The US oil company, which celebrated its 130th year in Malaysia last year, has been trying to sell its aging upstream assets in the country since 2020, Malaysian media reported, as part of a shift in its strategy to focus on oil production in America .
Petronas has acquired Exxon’s operations, including the country’s flagship Tapis oil field in Terengganu, which started production in 1978, three sources said.
Exxon 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.
Terms of the deal were not immediately known.
In an article on its website dated November 12, 2023, Exxon said it remains a major energy producer in Malaysia, contributing approximately 40% and 50% of energy production in Peninsular Malaysia respectively.
The company operates 35 oil and gas platforms in 12 fields offshore Terengganu and has a working interest in a further 10 platforms in five fields in the South China Sea.
The combined operations produce approximately 15% of Malaysia’s crude oil and condensate of 600,000 barrels per day, and more than half of Peninsular Malaysia’s natural gas of more than 2 billion cubic feet per day.
The last major investment in the country was a $2.5 billion enhanced oil recovery project in the Tapis field, which started in late 2014.
