Transfer of Operatorship
ExxonMobil has transferred the operational control of two major offshore production sharing contracts (PSCs) in Malaysia to Petronas Carigali, a subsidiary of Malaysian national Energy company Petronas. The handover does not indicate a complete exit from Malaysia for ExxonMobil, which continues to hold a working interest in these assets. Instead, it supports ExxonMobil’s broader effort to streamline its global exploration and production (E&P) portfolio.
Important Assets and Ongoing Projects
One of the major assets involved in this transfer is the Tapis oilfield, which has been in operation for over 45 years. This field has benefited from enhanced oil recovery (EOR) efforts since 2014, prolonging its lifespan. Despite the transfer of operational control, ExxonMobil remains committed to this asset through its subsidiary, ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI), ensuring the continuation of the EOR project and sustained production levels.
Continuity and Energy Reliability
Petronas Carigali’s takeover of these operations ensures that the focus remains on safe operations and an uninterrupted energy supply for Malaysia. This transition is critical as these assets contribute significantly to Malaysian hydrocarbon output, providing approximately 20% of Oil and 50% of Natural Gas for peninsular Malaysia. The collaboration between ExxonMobil and Petronas Carigali ensures operational continuity and energy reliability in the region.
Long-Standing Partnership and Future Outlook
ExxonMobil's presence in Malaysia spans over 130 years, which has resulted in a long-standing partnership with the country. This latest move aligns with ExxonMobil's portfolio management objectives while reinforcing its commitment to the Malaysian Energy sector. Discussions between the two parties are ongoing, and the final agreements are yet to be formalised. This transition will be closely monitored to ensure a seamless handover, operational continuity, and continued Energy reliability for Malaysia.
