By Yantoultra Ngui and Florence Tan
SINGAPORE (Reuters) -Exxon Mobil Corp has agreed to promote its Malaysian oil and gasoline belongings to state vitality agency Petronas, exiting the nation’s upstream sector the place it was a dominant producer, two individuals with direct data of the matter stated.
The U.S. main, which final yr marked its one hundred and thirtieth yr in Malaysia, has been making an attempt to promote its ageing upstream belongings within the nation since 2020, Malaysian media have reported, a part of a shift in its technique to give attention to oil manufacturing within the Americas.
Petronas has taken over operations of Exxon’s belongings, together with the nation’s flagship Tapis oilfield in Terengganu which started manufacturing in 1978, three individuals stated.
Exxon’s workers can be transferred to Petronas as a part of the deal, one in all them stated.
Petronas stated on Saturday that Petronas Carigali Sdn Bhd is presently engaged in discussions with ExxonMobil (NYSE:) Exploration and Manufacturing Malaysia Inc relating to the switch of operations for 2 production-sharing contracts positioned offshore peninsular Malaysia.
“The discussions are topic to additional agreements between each events,” it stated in response to a Reuters question. “Petronas Carigali stays dedicated to secure operations, in addition to sustaining dependable and uninterrupted vitality provide for our prospects all through the method.”
ExxonMobil didn’t reply to requests for remark.
The phrases of the deal weren’t instantly recognized.
In an article posted on its web site dated Nov. 12, 2023, Exxon stated it remained a big vitality producer in Malaysia, contributing about 40% and 50%, respectively, to Peninsular Malaysia’s and manufacturing.
The corporate operates 35 oil and gasoline platforms in 12 fields offshore Terengganu, and has a working curiosity in one other 10 platforms in 5 fields within the South China Sea.
The mixed operations produce about 15% of Malaysia’s crude oil and condensate of 600,000 barrels a day, and greater than half of peninsular Malaysia’s pure gasoline of greater than 2 billion cubic toes per day.
Its final main funding within the nation was in a $2.5 billion enhanced oil restoration mission on the Tapis area, which began up in late 2014.
