Petron Malaysia Refining and Marketing exited the lubricants sector as of March 1, citing the costs of introducing a new brand of lubricants in the Malaysian market.
In an announcement Friday, Petron said it believed its marketing and sales efforts and company resources would be more beneficially utilized in fuels marketing and commercial businesses where there was certainty of higher return on investments. The company estimated that marketing efforts to introduce a new brand of lubricants in the Malaysian market would not yield immediate returns.
Petron Malaysia is part of Petron Corp., an oil refining and marketing company in the Philippines. Petron entered the Malaysian market by acquiring ExxonMobils downstream business there, including Esso Malaysia Berhad, in April 2012. According to Petron, ExxonMobils Mobil branded lubricants were carved out of the acquisition agreement as ExxonMobil wanted to retain its lubricant brand and have control over its branded lubricant business in Malaysia.
In the interim following the acquisition, Petron Malaysia Refining and Marketing said it continued to allow its gasoline station dealers to stock Mobil branded lubricants, which the dealers could acquire directly through ExxonMobil appointed distributors in Malaysia.
Petron said it also made arrangements for its gasoline station dealers to acquire Petron branded lubricants directly from appointed third party lubricants distributors. The arrangement with third party lubricant distributors to supply Petron branded lubricants directly to Petrons gasoline station dealers and motorists in Malaysia will continue even after Petron Malaysia Refining and Marketing exits the lubricants business, according to Fridays announcement.