KUALA LUMPUR, April 29 -- US oil firm ConocoPhillips has unexpectedly withdrawn from operating the Salam-Patawali deepwater oil and gas field off Sarawak's coast, adding to the state's rights dispute with Petronas.

The project, discovered jointly with Malaysia's national oil corporation Petronas in 2018, represented a 50-50 joint venture valued at approximately RM13.7 billion (US$3.13 billion).

According to Channel News Asia, industry sources close to ConocoPhillips confirmed the withdrawal, attributing it to a "country strategy review" without providing further details.

Attempts to reach company executives at their Kuala Lumpur office were unsuccessful. According to multiple industry executives, the decision was partially motivated by...