According to two sources cited by Reuters, ExxonMobil is in talks with Petronas to sell its upstream gas and oil assets in Malaysia.
ExxonMobil, which makes the Mobil lubricant and grease range, has increasingly focused its upstream efforts on the Americas, with it having extensive assets in the US and a string of developments in the pipeline in Guyana.
Despite it having recently celebrated operating in Malaysia for 130 years, divesting its mature upstream assets there would fit with this strategy. Indeed, the Malaysian media have reported that Exxon has been seeking a buyer since 2020.
In addition to being a provider of lubricant and coolant solutions, Petronas is the state-owned energy company of Malaysia, so the assets would be a logical acquisition for the company. One of Reuter’s sources said that any staff involved would be transferred across to Petronas.
In response to a query from Reuters, Petronas said:
“The discussions are subject to further agreements between both parties. Petronas Carigali remains committed to safe operations, as well as maintaining reliable and uninterrupted energy supply for our customers throughout the process.”
Reuters also requested a comment from ExxonMobil, but said the company declined to respond. The deal’s terms are also currently unknown.
ExxonMobil operates 35 gas and oil platforms offshore of Terengganu across 12 fields. It also has stakes in a further 10 platforms in the South China Sea in five fields.
According to ExxonMobil’s website, the company contributes about 50% of Malaysia’s natural gas production and 40% of its crude oil production.
