Exxon Mobil Corp. (NYSE:XOM) shares are trading lower in premarket on Friday.
The energy giant has finalized a deal to sell its Malaysian oil and gas assets to state energy firm Petronas, marking its exit from the country’s upstream sector where it once held a dominant position.
Exxon’s move to divest its Malaysian assets reflects a broader strategic shift towards focusing on its more lucrative operations in the Americas., Reuters reported.
Petronas has assumed the operations of Exxon's assets, including the Tapis oilfield in Terengganu, which started production in 1978.
As part of the deal, Exxon’s staff will transfer to Petronas. The specifics of the deal were not disclosed.
Despite the sale, Exxon stated in a Nov. 12, 2023 blog that it continues to be a major energy producer in Malaysia.
The company’s last major investment in Malaysia was a $2.5 billion enhanced oil recovery project at the Tapis field, which began in late 2014.
Also Read: Exxon To Drill Up To 30 Wells In Guyana’s Hammerhead Project, Boosting Daily Output: Report
Exxon contributes approximately 40% of Peninsular Malaysia’s crude oil and 50% of its natural gas production. The company operates 35 platforms across 12 fields offshore Terengganu and has interests in 10 platforms across five fields in the South China Sea.
Exxon’s combined operations yield about 15% of Malaysia's crude oil and condensate, amounting to 600,000 barrels per day, and over half of Peninsular Malaysia’s natural gas production, exceeding 2 billion cubic feet per day.
The oil giant will report second-quarter FY24 results on Aug. 2, 2024.
Exxon stock has gained more tha 16% in the last 12 months. Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund (NYSE:XLE) and IShares U.S. Energy ETF (NYSEIYE).
Price Action: XOM shares are trading lower by 0.27% at $118.48 during pre-market trading Friday.
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