KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) may take over ExxonMobil's operations that are involved in their production sharing contracts (PSCs).
A source told Business Times that Petronas is buying ExxonMobil's operations but the latter will still own its assets.
Following the purchase, some of ExxonMobil's staff are expected to be under Petronas' payroll.
The source close to the matter also said transfer of ownership from ExxonMobil to Petronas will "eventually take place in the future".
It is estimated that the assets are between US$2 billion and U$3 billion.
It is claimed that ExxonMobil had announced the matter internally.
Business Times has reached out to Petronas for comment.
The US oil major, which last year marked its 130th year in Malaysia, reportedly has been trying to sell its ageing upstream assets in the country since 2020.
Meanwhile, Reuters reported that Petronas had taken over operations of ExxonMobil''s assets including the country's flagship Tapis oilfield in Terengganu which began production in 1978.
It said in an article posted on its website dated Nov 12, 2023, Exxon had said it remained a significant energy producer in Malaysia.
It contributed about 40 per cent and 50 per cent respectively to Peninsular Malaysia's crude oil and natural gas production.
The company operates 35 oil and gas platforms in 12 fields offshore Terengganu, and has a working interest in another 10 platforms in five fields in the South China Sea.
The combined operations produce about 15 per cent of Malaysia's crude oil and condensate of 600,000 barrels a day, and more than half of Peninsular Malaysia's natural gas of more than two billion cubic feet per day.
ExxonMobil's last major investment in Malaysia, Reuters said, was in a US$2.5 billion (RM11.72 billion) enhanced oil recovery project at the Tapis field, which started up in late 2014.