By DayakDaily Team
KOTA KINABALU, July 4: PETRONAS, through Malaysia Petroleum Management (MPM), reaffirmed its longstanding partnership with the Sabah government by formalising several landmark agreements, including the official handover of the Sabah Gas Strategy, the signing of a Technical Evaluation Agreement (TEA) for the Layang-Layang Basin, and a Memorandum of Understanding (MoU) to advance the development of the Mutiara Cluster, at the Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2025.
In a media release today, PETRONAS emphasised that these milestones underscore a shared commitment to unlocking Sabah’s energy potential through collaborative, sustainable, and value-driven development.
MPM senior vice president, Datuk Ir Bacho Pilong said, “These achievements reaffirm our enduring partnership with 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.”
One of the key highlights of the event was the official document handover of the Sabah Gas Strategy—an initiative jointly developed by PETRONAS and the Sabah government.
Guided by the Sabah Joint Coordination Committee (JCC), the strategy was formulated 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 the Ministry of Industrial Development and Entrepreneurship (MIDE).
Anchored on the 2021 Commercial Collaboration Agreement (CCA), the strategy outlines a long-term blueprint to secure reliable gas supply for Sabah’s domestic demand while promoting sustainable industrial growth.
PETRONAS also signed a TEA for the Layang-Layang Basin off Sabah’s coast—an underexplored frontier basin covering about 44,500 square kilometres.
The agreement, signed with ConocoPhillips Malaysia New Ventures Ltd (COP) and PERTAMINA Hulu Energi (PERTAMINA), enables detailed subsurface studies including regional geological assessments and prospectivity analysis.
This move reflects PETRONAS’ continued drive to activate frontier basins and deepen exploration activities in high-potential areas.
Further reinforcing upstream collaboration, PETRONAS signed an MoU with DIALOG Resources Sdn Bhd (DIALOG) to advance the Mutiara Cluster’s development, located off Sabah’s East Coast.
Offered under the Malaysia Bid Round 2025, the Small Field Asset Production Sharing Contract for the cluster was awarded to DIALOG in June. The project will focus on cost-effective, optimised development by repurposing existing materials and leveraging past operational insights to expedite first gas delivery.
To support ongoing and future exploration efforts, PETRONAS is also investing in seismic data acquisition programmes, including in Sabah’s East Coast, to improve geological understanding and accelerate basin development.
PETRONAS expressed its commitment to ensuring a resilient and sustainable energy future for Malaysia. Through MPM, the national oil giant will continue to provide strategic stewardship over the nation’s petroleum resources and upstream activities, aligning national energy goals with global sustainability ambitions.
Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe, Sabah government representatives and industry leaders were among those present at the event. — DayakDaily
