KUALA LUMPUR — Petroliam Nasional Bhd (Petronas), through its upstream regulator Malaysia Petroleum Management (MPM), has entered into several strategic agreements with the Sabah state government, marking significant progress in the state’s energy development agenda.
Announced at the Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2025, Petronas confirmed it had formally handed over the Sabah Gas Strategy document — a jointly developed roadmap aimed at ensuring a reliable and sustainable gas supply to meet the state’s growing domestic demand.
The strategy, crafted through collaboration between Petronas and various Sabah state entities, outlines a structured long-term plan for optimising the state’s energy resources.
MPM senior vice-president Datuk Bacho Pilong said the handover and accompanying milestones reaffirm the company’s partnership with the state.
“We will together continue accelerating sustainable development, strengthening energy security and creating long-term value to benefit Sabah and the nation,” he said in the statement.
“These various milestones reflect a shared commitment to advancing Sabah’s energy landscape via collaborative, sustainable, and value-driven development.”
The strategy was formulated by a joint task force comprising Petronas, SMJ Energy Sdn Bhd, Sabah Energy Corporation Sdn Bhd, the Sabah Energy Commission, and Sabah’s Industrial Development and Entrepreneurship Ministry, with input from the Sabah Joint Coordination Committee.
In a separate development, Petronas also signed a Technical Evaluation Agreement (TEA) with ConocoPhillips Malaysia New Ventures Ltd and Pertamina Hulu Energi for the Layang-Layang Basin.
The agreement allows for in-depth subsurface evaluations — from regional geological mapping to detailed prospect analyses — across a 44,500-square-kilometre area off Sabah’s coast.
Additionally, Petronas signed a memorandum of understanding with DIALOG Resources Sdn Bhd to collaborate on the development of the Mutiara Cluster, located off the state’s east coast.
The company also noted ongoing investments in seismic data acquisition programmes aimed at enhancing geological understanding and fast-tracking exploration initiatives in Sabah’s offshore basins. — July 4, 2025