8 hours Ago By Business Times
KUALA LUMPUR: American oil major ConocoPhillips has reportedly withdrawn from a US$3.13 billion project off Sarawak.The Houston-based company decided this month to withdraw from operating the Salam-Patawali deepwater oil and gas (O&G) field, Channel News Asia (CNA) reported.
ConocoPhillips discovered the field in 2018 with Petronas in a 50-50 joint-venture that was expected to cost RM13.7 billion (US$3.13 billion).
The withdrawal was first reported by Upstream Online, a widely tracked industry news resource, on April 15.Two industry sources close to ConocoPhillips separately confirmed the pullout with CNA.They added that the move was part of a "country strategy review", which the company did not elaborate on.
Industry executives told the news portal that ConocoPhillips' move was in part driven by the uncertain regulatory environment arising from the spat between Petronas and Sarawak state government.The Sarawak government, which owns oil and gas firm Petroleum Sarawak or Petros, has been asserting greater control over its natural resources.The industry executives with close ties with ConocoPhillips said that the company would now be focusing on its activities in Sabah, where it already has operations.
According to ConocoPhillips' factsheet on its Asia Pacific operations dated April 2024, it has exploration, development and production activities across about 2.7 million net acres in Malaysia.Net acres refer to the amount of leased real estate that a company holds, pertaining to its working interest.
It has working interests in six production sharing contracts in Malaysia, and Petronas is listed as a "co-venturer" in all six contracts.The Salam-Patawali exploration block encompasses 300,000 net acres primarily in the Salam and Benum fields off southern Sarawak."The company continues to evaluate the block and information from prior well results.
A 3D seismic survey was acquired in 2023, and processing and evaluation of this data is currently ongoing," it stated.© New Straits Times Press (M) Bhd.
