ExxonMobil selling Malaysia oil and gas assets to Petronas, sources say

Exxon Mobil Corp 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 people with direct knowledge of the matter said.

The US major, which last year marked its 130th year in Malaysia, has been trying to sell its ageing 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 people said.

Exxon's staff would be transferred to Petronas as part of the deal, one of them said.

Petronas said on Saturday that Petronas Carigali Sdn Bhd is currently engaged in discussions with ExxonMobil Exploration and Production Malaysia Inc regarding the transfer of operations for two production-sharing contracts located offshore peninsular Malaysia.

"The discussions are subject to further agreements between both parties," it said in response to a Reuters query. "Petronas Carigali remains committed to safe operations, as well as maintaining reliable and uninterrupted energy supply for our customers throughout the process."

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.