RM500 million yearly next five years. On exploration and related activities in Sabah's East Coast: Petronas

Daily Express

03-07-2025

Published on: Friday, July 04, 2025
Published on: Fri, Jul 04, 2025
By: Sisca Humphrey Text Size: 'One major target is Block SB505 off the east coast, with 3D seismic data being made freely available to qualified bidders. Our goal is simple. We want to lower the risk and raise the value of these underexplored basins,' Bacho said. Kota Kinabalu: Petronas is accelerating its upstream agenda in Sabah with a renewed push into the state's frontier basins, strategic deepwater projects and industrial-scale gas monetisation, including the rebranding of the Semporna Basin to the Tawau Basin. Petronas Senior Vice President of Malaysia Petroleum Management (MPM), Datuk Bacho Pilong, said Sabah continues to be a cornerstone in the national oil company's long-term energy strategy.
Advertisement 'Sabah is central to the country's energy future. From west coast producers to east coast frontier opportunities, it offers a complete portfolio for sustainable growth,' he said. He was delivering a keynote address at the 12th Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2025 at Sabah International Convention Center (SICC), Thursday. One of the most notable announcements was the proposed renaming of the Semporna Basin to the Tawau Basin, aimed at reflecting growing interest in Sabah's southeastern offshore potential. A name change intended to better reflect the geographical context and rising commercial interest in Sabah's southeastern offshore areas. 'We believe the time is right to rebrand the basin. Tawau reflects both its geography and its immense untapped potential. This is not merely a naming change. 'It signals a long-term repositioning of exploration focus and commercial attention,' he said. Further supporting this shift, Petronas will commit RM500 million annually until 2030 toward exploration and basin enrichment, including seismic acquisition, geological mapping and open data access. 'One major target is Block SB505 off the east coast, with 3D seismic data being made freely available to qualified bidders. Our goal is simple. We want to lower the risk and raise the value of these underexplored basins,' Bacho said. He also noted growing international interest, with six Technical Evaluation Agreements (TEAs) signed this year with new entrants including ConocoPhillips, Pertamina and Posco International. Five PSCs were also awarded under the latest Malaysia Bid Round. In the deepwater space, recent development efforts have centred on high-impact projects in western and northwestern Sabah, including Gumusut-Kakap and Geronggong–Jagus East (GK-GJE) Phase 4. He said the initiative marks Malaysia's first cross-border deepwater collaboration with Brunei and has already yielded positive results. 'GK-GJE Phase 4 is more than a project. It is a precedent. This marks the first time the two nations have jointly developed a deepwater field, and the outcome exceeded expectations,' he said. Other active fields under expansion include Kikeh Phase 3B, Block H Phase 1B and Kinabalu NAG Phase 3, which are collectively expected to unlock approximately 150 million barrels of oil equivalent, supported by over RM9 billion in capital spending. On the exploration front, Bacho confirmed three significant finds. Megah-1, drilled in ultra-deepwater, reached a total depth of 4.7 kilometres. The Bilit Deep-1 and Zoisit-1 wells, both located in the SB409 contract area, are part of a cluster that could meet future domestic gas needs well beyond 2030. 'These discoveries are among our most promising in recent years. They represent the next chapter in the region's upstream story and reinforce the importance of continued eastward expansion,' he said. Further downstream, a key milestone this year has been the delivery of natural gas to Esteel Sabah, supporting operations at the state's first low-carbon steel facility. Phase One of the plant was launched in May, following a gas supply agreement signed earlier between the national oil company and Sabah Energy Corporation. 'Subject to volume availability, Esteel has the potential to become the largest low-carbon steel facility in the world, and it is based right here in the state,' he said. The project is part of the broader Sabah Gas Strategy, co-developed under the Sabah Joint Coordination Committee, which also includes SMJ Energy, SEC and the Energy Commission. 'The long-term framework aims to ensure stable and sustainable gas supply for local consumption while enabling large-scale industrial development. 'It is a coordinated approach to gas monetisation, aligning energy availability with future-ready manufacturing growth,' Bacho said. Sabah's prominence in the global LNG supply chain also continues to rise. In addition to housing Malaysia's only two floating LNG facilities, a third known as ZLNG is expected to begin operations by 2027. 'With ZLNG coming online, this state will strengthen its position on the global LNG supply map. This is not a local story. It is about contributing to global energy security,' he said. He also revealed that Petronas is preparing to deliver its first LNG cargo from Canada this weekend, further diversifying its international gas portfolio. 'We now have supply nodes from Canada to Australia. And this weekend marks a new chapter. Our first cargo from Canada is ready to sail,' he added. Bacho highlighted Petronas' long-term investment in talent and local capability. 'We're not just investing in reserves and infrastructure. We're investing in people,' he said. He emphasised that the focus is on building a sustainable ecosystem that benefits not only the company but also the state and its future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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