Malaysia’s state-owned Petroliam Nasional Berhad (Petronas), through Malaysia Petroleum Management (MPM), reaffirmed its longstanding partnership with the Sabah state government by formalizing several key agreements for sustainable energy growth.
Petronas said in a statement on last Friday that these milestones reflect a shared commitment to advancing Sabah’s energy landscape through collaborative, sustainable, and value-driven development.
“These achievements reaffirm our enduring partnership with the State of Sabah, built on mutual trust and a shared vision to responsibly unlock the full potential of the state’s energy resources,
“Together, we will continue accelerating sustainable development, strengthening energy security and creating long-term value that will benefit both Sabah and the nation,” said MPM Senior Vice President Bacho Pilong.
Anchored on the commercial collaboration agreement (CCA) established between Petronas and the Sabah state government in 2021, the strategy outlines a long-term and structured blueprint to secure reliable gas supply for the state’s expanding domestic demand, while enabling sustainable industrial growth.
Another highlight was the signing of the technical evaluation agreement (TEA) for the Layang-Layang Basin off the coast of Sabah, a frontier basin spanning approximately 44,500 square kilometers.
The TEA, signed with ConocoPhillips Malaysia New Ventures Ltd (COP) and PERTAMINA Hulu Energi (PERTAMINA), also paves the way for comprehensive subsurface studies ranging from regional geological assessments to detailed prospectivity analysis.
This highlights Petronas’ continued commitment to activate frontier basins and advancing exploration efforts in this promising area.
Further reinforcing exploration and production collaboration, Petronas formalized a memorandum of understanding (MoU) with Dialog Resources Sdn Bhd (DIALOG) to further advance the development of the Mutiara Cluster, located off the coast of Sabah’s East Coast.
Offered under the Malaysia Bid Round 2025, Mutiara Cluster small field asset production sharing contract was awarded to DIALOG in June this year.
The cluster offers an opportunity to monetize discovered resources with a cost effective, optimized development plan that will see DIALOG repurpose existing materials and equipment, drawing on past insights to accelerate first gas delivery.
As part of its efforts in enhancing basin understanding to unlock future opportunities for Malaysia’s production growth, Petronas said it is investing in seismic data acquisition programs, including Sabah’s East Coast area to deepen geological insights and accelerate exploration activities.
The firm also said it remains steadfast in its commitment to ensuring a sustainable and resilient energy supply for Malaysia.
It noted MPM continues to play a pivotal role in managing the nation’s petroleum resources and providing strategic stewardship over upstream petroleum activities in Malaysia.
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