PETRONAS Forges New Milestones for Sabah's Sustainable Energy Growth

2025 Media Release - 4 Jul

KOTA KINABALU, 4 July 2025 – PETRONAS, through Malaysia Petroleum Management (MPM), reaffirmed its longstanding partnership with the Sabah State Government by formalising several key agreements at the Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2025. These milestones reflect a shared commitment to advancing Sabah’s energy landscape through collaborative, sustainable, and value-driven development.

MPM Senior Vice President, Datuk Ir. Bacho Pilong said, “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.”

The event represented a key advancement in Sabah’s energy development with the official document handover of the Sabah Gas Strategy, an initiative by both PETRONAS and the Sabah State Government. Under the advisory of the Sabah Joint Coordination Committee (JCC), the strategy was developed by a Joint Task Force (JTF) comprising PETRONAS, SMJ Energy Sdn Bhd (SMJE), Sabah Energy Corporation Sdn Bhd (SEC), Energy Commission of Sabah (ECoS) and Ministry of Industrial Development and Entrepreneurship (MIDE).

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 kilometres. The TEA, signed with ConocoPhillips Malaysia New Ventures Ltd (COP) and PERTAMINA Hulu Energi (PERTAMINA), 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 formalised 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 monetise discovered resources with a cost effective, optimised 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 is investing in seismic data acquisition programmes, including Sabah’s East Coast area to deepen geological insights and accelerate exploration activities.

PETRONAS remains steadfast in its commitment to ensuring a sustainable and resilient energy supply for Malaysia. MPM continues to play a pivotal role in managing the nation’s petroleum resources and providing strategic stewardship over upstream petroleum activities in Malaysia.

For more information on investment opportunities in Malaysia, please visit https://www.petronas.com/mpm/.

Source: PETRONAS Forges New Milestones for Sabah's Sustainable Energy Growth | PETRONAS Global