ExxonMobil has agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, exiting the country’s mining sector where it has been the dominant producer, two sources with direct knowledge of the matter said.
Petronas took over operations of Exxon’s assets, including the country’s most vital oil field, Tapis in Terengganu, where production began in 1978, three sources said.
One of the sources said that as a part of the deal, Exxon employees could be transferred to Petronas.
Petronas and ExxonMobil didn’t reply to requests for comment.
The terms of the contract weren’t initially known.
In an article published on its website on November 12, 2023, Exxon said it stays a major energy producer in Malaysia, accounting for about 40% and 50% of Peninsular Malaysia’s oil and natural gas production, respectively.
The combined operations produce about 15 percent of Malaysia’s crude oil and condensate production, amounting to 600,000 barrels per day, and greater than half of Peninsular Malaysia’s natural gas production, amounting to greater than 2 billion cubic feet per day.
The last major investment within the country was the USD 2.5 billion enhanced oil recovery project on the Tapis field, which began in late 2014.
