This article first appeared in The Edge Malaysia Weekly on November 10, 2025 - November 16, 2025

PETROLIAM Nasional Bhd (Petronas) is understood to be looking to hive off non-core assets, which may include marginal oilfields, sources familiar with the matter tell The Edge.

It is understood that the national oil company has sought the assistance of Jefferies Financial Group Inc to help sell its assets, which are located around the country. “I know Jefferies is running a process for Petronas,” says a source, who spoke on condition of anonymity.

Another source says he has heard that the company may look at divesting marginal oilfields, depots and some berthing facilities, and is waiting for more details to emerge.

“Basically, marginal oilfields are viable only if oil prices are high, above US$60 per barrel, which could be the reason for the sale. Maybe Petronas doesn’t see some of the assets as viable,” explains another source, who is aware of the asset sale by Petronas.

In an email response to questions from The Edge, Petronas says: “Portfolio review is a continuous and integral process undertaken by Petronas Carigali [Sdn Bhd], in line with industry practices among leading energy companies. It is aimed at ensuring the company remains resilient, competitive and focused on fulfilling its mandate as Malaysia’s national oil company. From time to time, Petronas Carigali may appoint professional advisers to support the execution of such activities.”

While initial suggestions were that Petronas was looking at divesting assets in Sarawak alone, the company says: “Any exercise will not be limited to any specific area, and Petronas Carigali remains committed to supporting East Malaysia’s development as a key area within our portfolio.”

Talk of Petronas divesting assets in Sarawak was fuelled by an ongoing dispute with Sarawak’s Petroleum Sarawak Bhd (Petros), as both parties competed for the state’s gas aggregator role. Sarawak’s position reflects the fact that 90% of Petronas’ liquefied natural gas cargo is sourced from or passes through the state.

For perspective, Petronas Carigali is the wholly-owned exploration arm of the national oil company, and wholly owns Vestigo Petroleum Sdn Bhd.

Vestigo, which was established in April 2013, manages Petronas’ marginal and mature oil and gas assets. It thrives on low-cost production and development, and leverages partnerships with third parties for technical expertise and financial support, to deliver cost-efficient and effective solutions.

According to Vestigo’s website, the company has assets off Sabah, Sarawak and Terengganu, including the NBE Cluster, which consists of the Nosong, Bongawan North and Epidot fields off Sabah; Anjung Kecil oilfield in Block SK315 off Bintulu, Sarawak; Bentara field, part of SK315; late-life asset Larut field, part of PM335 off Terengganu; and the Tembikai, Berantai and Jitang fields in the Irong Cluster, also off Terengganu.

Petronas’ marginal oilfield exploration gained momentum in 2011 as Brent crude oil for the year averaged at US$111.26 per barrel, with gains brought about by events such as political unrest in Libya and rising demand from emerging markets.

For background, Petronas in 2011 awarded six risk service contracts (RSCs) to develop marginal oilfields. One contract was awarded to Petrofac and Vantris Energy Bhd (KL:VANTNRG) in January 2011 for the Berantai field, while another was awarded in August 2011 to a consortium comprising Roc Oil Malaysia (Holdings) Sdn Bhd, Dialog Group Bhd (KL:DIALOG) and Petronas Carigali for the Balai-Bentara cluster off Sarawak.

In mid-2012, Petronas awarded a small field RSC to Petra Energy Bhd (KL:PENERGY) and Coastal Energy Co for the development and production of petroleum from the Kapal, Banang and Meranti cluster in Block PM 316 off Terengganu. Then, it awarded a contract to Vestigo for the Tembikai-Chenang cluster in October 2013; to EQ Petroleum Developments Malaysia Sdn Bhd and Uzma Bhd (KL:UZMA) for the Tanjong Baram field in March 2014; and a small field RSC to Ophir Production Sdn Bhd, a joint venture between Octanex Pte Ltd, Scomi Group Bhd and Vestigo, in June 2014.

Apart from two RSCs — those of Petra Energy in partnership with Coastal Energy; and Vestigo in the Tembikai-Chenang clusters — the other four have either ceased operations, have been terminated or have been exited by the shareholders. While most of the companies awarded RSCs for marginal oilfields underperformed, Vestigo has been doing well. For its financial year ended Dec 31, 2024 (FY2024), the company chalked up an after-tax profit of RM523.65 million on the back of RM1.8 billion in revenue. It paid out RM260 million in dividends for FY2024.

As at end-2024, Vestigo had almost RM3 billion in total assets, RM2.07 billion in total liabilities and RM763.88 million in reserves.

Nevertheless, the sale of assets such as marginal oilfields is unlikely to have a significant impact on Petronas. For the six months ended June 2025, the company posted RM26.19 billion in after-tax profit on RM132.56 billion in revenue, compared with RM32.38 billion in after-tax profit on RM158.74 billion in revenue for the previous corresponding period. 

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