KUALA LUMPUR: US oil major ConocoPhillips has reportedly withdrawn from operating the Salam-Patawali deepwater oil and gas field off Sarawak’s coast.
ConocoPhillips has quietly exited the US$3.13bil (RM13.7bil) project this month, according to Channel News Asia (CNA).
The deepwater oil and gas field, discovered with Petronas in 2018, was a 50-50 joint venture.
The withdrawal was first reported by Upstream Online, a leading news platform for the oil and gas industry, on April 15.
CNA reported that two industry sources close to ConocoPhillips confirmed the withdrawal, citing a "country strategy review" that the company did not elaborate on.
Industry executives told CNA 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, is demanding greater control over its resources.
The industry executives with close ties with ConocoPhillips said that the company would now be focusing on its activities in neighbouring Sabah, where it already has operations.
