ConocoPhillips confirms exit from RM13.7bil Salam-Patawali deepwater project
KUALA LUMPUR: US oil major ConocoPhillips has confirmed it will not proceed with the RM13.7bil Salam-Patawali deepwater oil and gas project, also known as WL4-00, off the coast of Sarawak.
'ConocoPhillips has elected not to progress development of the WL4-00 project based solely on prioritisation within the company's global portfolio,' it said in a brief statement.
The deepwater oil and gas field, discovered jointly with Petronas in 2018, was developed under a 50:50 joint venture.
According to its website, ConocoPhillips Sarawak Ltd holds a 50% working interest and is the operator of Block WL4-00, which spans 0.3 million net acres, primarily covering the Salam and Benum fields.
Earlier, Channel News Asia (CNA) reported that ConocoPhillips had quietly exited the project this month.
The withdrawal was first reported by Upstream Online, a leading news platform for the oil and gas industry, on April 15.
Industry executives told CNA that ConocoPhillips' move was in part driven by the uncertain regulatory environment arising from the spat between Petronas and the Sarawak state government.
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