Malaysia (non) M&A - PETRONAS to take over operatorship of PM assets from ExxonMobil

There were plenty of media reports on Friday that a deal had been agreed that would see PETRONAS acquire ExxonMobil's remaining interest in their Peninsular Malaysia PSCs.

However, it appears to have been over-hyped and the deal simply sees PETRONAS take over operatorship of these two PSCs from ExxonMobil, with no change in working interest. In addition, it sounds like the agreement to change operatorship is not finalized, but I would expect this to happen in the coming months.

Rumours of this shift in operatorship have been bouncing around for a while, so it is not a big surprise.

ExxonMobil PM PSCs

The PSCs in question are the two remaining PSCs in which ExxonMobil hold an interest in Malaysia:

• 1995 PSC: oil-focused PSC that was extended in 2008 for 25 years, with current expiry therefore 2033. The current working interests are ExxonMobil (50%), and PETRONAS Carigali (50%).
• Gas PSC: as the name suggests, a gas-focused PSC, with current expiry in 2027. The current working interests are ExxonMobil (50%), and PETRONAS Carigali (50%).

ExxonMobil are currently the operator of both PSCs, with PETRONAS Carigali acting as operator for a few of the fields and will transition to full operatorship once the move is finalized.