By Karen Bong
KUCHING, May 20: Four major projects under Petroleum Sarawak Berhad (PETROS) valued at more than RM10 billion are progressing towards Final Investment Decision (FID) in 2026, involving drilling, exploration and development activities, with first gas production expected from the PC4 and Salbiah offshore fields in Bintulu.
Minister of International Trade, Industry and Investment Datuk Amar Awang Tengah Ali Hasan said the investments are critical to ensuring long-term energy security while supporting Sarawak’s broader industrialisation agenda.
“In the upstream sector, PETROS continues to expand its strategic role through participation in 20 Production Sharing Contracts across offshore and onshore areas in collaboration with domestic and international partners,” he said when delivering his ministerial winding-up speech during the Sarawak Legislative Assembly sitting today.
Awang Tengah, who is also Deputy Premier, said onshore developments are also progressing steadily, with the Adong Kechil West field in Miri under the SK433 Petroleum Contract remaining on track to achieve first oil in the third quarter of 2026, followed by first gas in 2027.
“This will support power generation capacity in Northern Sarawak, including gas supply to the Miri Combined Cycle Gas Turbine plant,” he said.
Meanwhile, PETROS has strengthened subsurface understanding through the completion of the enhanced Full Tensor Gravity programme in December 2025, with interpretation works ongoing to support future drilling and resource development.
In collaboration with the Japan Organisation for Metals and Energy Security, PETROS also completed a joint prospectivity study covering the Mukah and Balingian areas.
“The findings confirmed encouraging hydrocarbon potential consistent with the adjacent offshore Balingian province, with two highly prospective areas identified for further seismic acquisition planned in 2027,” he disclosed.
Awang Tengah added that in Limbang Division, additional studies integrating newly acquired gravity data and reprocessed seismic datasets have significantly enhanced subsurface clarity, which is expected to support new exploration opportunities and unlock further resource potential in Northern Sarawak.
He emphasised that Sarawak continues to intensify efforts to strengthen its oil and gas ecosystem through strategic investments, industrial expansion and international collaborations.
“The Kuching Low Carbon Hub is envisioned as an integrated low-carbon industrial ecosystem combining upstream resource development, carbon management solutions, LNG-to-power generation, downstream processing and industrial park development,” he said.
According to him, the initiative will also be supported by critical infrastructure including gas terminals and a deep-sea port.
“The integrated approach will optimise resource value, attract ESG-driven investments and strengthen Sarawak’s competitiveness in the regional and global energy landscape,” he said.
To realise the vision, PETROS has established strategic partnerships with leading international companies including China Jiangsu International Economic and Technical Cooperation Group and Sumitomo Corporation.
Awang Tengah said the collaborations have already resulted in several Memoranda of Understanding involving potential investments of up to RM30 billion over the next decade.
Building on the Sarawak Gas Roadmap, he said the State is accelerating the development of bankable projects to drive industrial expansion and create long-term economic opportunities.
He added the roadmap is expected to catalyse investments of up to RM300 billion while generating as many as 180,000 jobs.
At the same time, he said efforts are being intensified to increase Sarawakian participation across the oil and gas value chain through capability development, improved access to financing and higher industry standards. — DayakDaily
