A simmering dispute between Petronas and the Sarawak government has reportedly unsettled foreign investors, following a surprise withdrawal by US oil company ConocoPhillips from a major deepwater oil and gas project off the Borneo coast.

The American firm quietly exited its joint-venture with Petronas on the Salam-Patawali oil field - an RM13.7 billion (US$3.13 billion) project discovered in 2018 - according to a report by Upstream Online on April 15, and later confirmed by two industry sources close to the company, CNA reported.