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I
n
1965, Malaysia was in the throes
of her youth – a mere eight years
after independence and two years
after the formation of the Malaysian
Federation. With the separation of
Singapore, the young nation was
determined to succeed. A bounti-
ful land blessed with an abundance of
natural resources, Malaysia was a nation
brimming with potential.
Amidst a backdrop of major historical
decisions, the year saw international oil
and gas giant Esso (now ExxonMobil)
investing inMalaysia. As one of Malaysia’s
first foreign investors, Esso Exploration
Malaysia Inc. (EEMI)
was founded to conduct
petroleum exploration
activities here, bringing
much needed expertise,
technology and global
experience to an industry
in its infancy. Its first
petroleum agreement
wi th the Malaysian
Government was signed
in 1968, with the first
exploration well, “Tapis
No. 1”, drilled in 1969.
The 1970s was a
decade of intensive
offshore hydrocarbon
explorations, leading
to key discoveries and
milestones, made especially important
with the 1974 birth of the Malaysian
National Oil Corporation, Petroliam Na-
sional Berhad (PETRONAS), who was
entrusted with the commercialisation of
Malaysia’s hydrocarbon resources and
developing an industry that would become
the cornerstone of economic growth.
In 1974, crude oil production offshore
Sabah state was established. Two years
later, the company signed three Produc-
tion Sharing Contracts with PETRONAS,
elevating Malaysia’s status as a net oil
exporter.
A name change ensued in 1977 from
EEMI to Esso Production Malaysia Inc.
(EPMI). Overall, the 70s ending on a
good note with more crude oil production
in 1978 from the Pulai and Tapis fields
offshore Terengganu.
The 1980s saw further development
and growth, where Kerteh and Terengganu
were placed on the global map in the oil
and gas sector. In 1982, the important Gas
Project Phase 1 contract was signed with
PETRONAS, signalling the start of rapid
infrastructure expansion, starting with
the Terengganu Crude Oil Terminal which
commenced operations in 1983.
This meant that the supply base from
Singapore was shifted to Terengganu’s Ke-
maman base. Henceforth, a joint-delivery
system to supply gas to Peninsular Malay-
sia and Singapore ensued. Then in 1986,
the Tembungo operations offshore Sabah
was handed over to PETRONAS, enabling
EPMI to focus on exploration and produc-
tion activities in Peninsular Malaysia. In
1987, EPMI’s Kuala Lumpur Production
Offshore Divisionwas relocated to Kerteh,
and this was followed by the signing of
the PM5 and PM8 Production Sharing
Contracts with PETRONAS the next year.
The 1990s saw a flurry of rapid in-
dustrialisation, with oil and gas literally
underpinning the Malaysian economy.
It was also the advent of the “gas era”,
which saw an increase in the use of piped
natural gas to industries and homes in
Peninsular Malaysia, as well as to gener-
ate electricity. A key gas contract with
PETRONAS was signed, with 1992 being
especially significant as Jerneh, EPMI’s
first gas platform came onstream.
In 1996, Menara Esso (now Menara
ExxonMobil) was established as the
company’s new headquarters. The year
1999 was also a particularly important
one, as Exxon Corporation, EPMI’s parent
company in the United States, merged
with Mobil Corporation. The merger
resulted in a business reorganisation
and a change of name to ExxonMobil
Exploration and Production Malaysia Inc.
(EMEPMI) in 2001.
In 2008, EMEPMI signed a landmark
agreement with PETRONAS and PETRO-
NAS Carigali, leading to the execution of
a new 2008 Production Sharing Contract
which opened a new phase in its oil
business operations in
Malaysia for the next 25
years.
In 2014, the Tapis
EOR Project, Malaysia’s
first large-scale full field
Enhanced Oil Recovery
(EOR) programme, be-
gan operations to recover
remaining oil reserves in
the Tapis field.
As 2015 begins, Exx-
onMobil can take pride
in the past 50 years filled
with journeys of solid
partnerships and growth.
Together with PETRO-
NAS, ExxonMobil has
worked to develop the
local oil and gas industry – setting industry
standards, transferring technology and
skills, as well as developing human talent.
ExxonMobil has contributed about
RM70 billion to the local economy, par-
ticularly in the upstream business. As one
of Malaysia’s major crude oil producers
and suppliers of natural gas, ExxonMobil’s
30 platforms offshore Peninsular Malaysia
operate round-the-clock daily to meet
Malaysia’s energy needs, producing about
15% of the country’s crude oil and sup-
plying 50% of Peninsular Malaysia’s gas
needs.
The men and women of ExxonMobil
remain committed to supplying the energy
that Malaysia needs in a safe and reliable
manner, to ensure continued economic
growth for the country and the wellbeing
of all Malaysians.
ExxonMobil:
Celebrating50yearsof Upstream
Partnership&Growth
50 years of upstream operations in Malaysia