Petron Malaysia Refining & Marketing Bhd, part of Philippine oil refiner and marketer, Petron Corp., has exited the lubricant business because "the challenges of the local lubricants market would require extra allocation and other resources" on the part of the Petron group. The company stated that the loss of profit contribution from the sales of a new brand of lubricant to the company’s profitability would not be materialised.

In an exchange filing on March 1, the company said it will focus on its retail fuels marketing business and commercial business including liquefied petroleum gas (LPG), industrial and wholesale fuels and aviation fuels. It also has a strong presence in petroleum refining and supply/distribution, elements within Petron that support its retail and commercial businesses.

The company estimated that the marketing efforts to introduce a new brand of lubricants in the Malaysian market would not yield immediate returns. The petroleum products maker and distributor said its resources would be more beneficially utilised in fuels marketing and commercial businesses where there is certainty of higher return on investment (ROI).

On March 30, 2012, 65% of the voting shares in PMRMB (then ‘Esso Malaysia Berhad’) owned by ExxonMobil International Holdings Inc was acquired by Petron Oil & Gas International Sdn Bhd, an indirect wholly-owned subsidiary of Petron Corporation. As announced on the same day, among the inter-company agreements PMRMB had with Exxon Mobil Corporation affiliates (that were terminated) was the lubricant and specialty supply arrangement between PMRMB and Exxon Trading Asia Pacific Pte Ltd. Exxon Mobil Corporation’s proprietary ‘Mobil’ branded lubricants were carved out of the acquisition agreement between Petron Corporation and ExxonMobil as ExxonMobil wished to retain its lubricant brand and have control over its branded lubricant business in Malaysia.

PMRMB (in the interim following the acquisition by Petron) continued to allow its petrol station dealers to stock ‘Mobil’ branded lubricants which the dealers could acquire directly through ExxonMobil appointed distributors in Malaysia. PMRMB also made arrangements for its petrol station dealers to acquire ‘Petron’ branded lubricants directly from appointed 3rd party lubricants distributors. This arrangement with 3rd party lubricant distributors to supply ‘Petron’ branded lubricants directly to PMRMB’s petrol station dealers and motorist will continue even after PMRMB exits the Lubricants business.