Petronas has launched its 2023 oil and gas bid round with 10 blocks and two clusters of discovered resource opportunities on offer, the Malaysian NOC announced on…
READ MOREMalaysia's Energy Industry
in figures
Oil reserves2.7 billion barrels
Oil production573,000 bopd
Gas reserves900 mcm
Gas production74.2 bcm
Malaysia: LNG exporter
Malaysia’s oil and gas industry is a major pillar of the nation’s economy. The country of more than 23 million citizens is the second-largest hydrocarbons producer in Southeast Asia and the fifth largest exporter of LNG in the world. Malaysia began producing oil in the early 1900s from onshore assets in Sarawak and began moving into shallow-water plays in Peninsular Malaysia, Sarawak and Sabah in the 1960s. New technologies have unlocked new opportunities for more industrious offshore plays in the country’s main producing basins. The government has long pursued development of its maturing and marginal fields and further exploration activities to address a decline in production.
Malaysia’s oil and gas industry is tightly led by its NOC Petronas, which was established in 1974 and holds exclusive ownership rights to all E&P activities. The company’s contributions comprise around 35% of the state’s revenue. State-run upstream watchdog Petroleum Management Unit is responsible for handing out and overseeing production sharing licences in the country. The country has successfully attracted international IOCs interested in taking part in upstream opportunities, including ExxonMobil, Shell, ConocoPhillips, Spain’s Repsol and Japan’s JX Nippon Oil and Gas.
The nation is one of the world’s largest gas producers and exporters. While Malaysia’s NOC is the lead player in gas production and assets, Shell has established itself the second largest producer along with ExxonMobil, Thailand’s PTT Exploration and Production Public Company and Indonesia’s Pertamina having large shares in gas production. The largest domestic destinations for produced gas are the country’s industrial sector, which takes up around 49%, and the power generation sector, which takes up around 50%.
Malaysia boasts an extensive natural gas pipeline network. The majority, known as the Peninsular Gas Utilization network, is located in Peninsular Malaysia. Export of LNG comes from Malaysia’s regasification terminals, which are connected to its major pipeline network and exported to Singapore. LNG is mainly exported to other countries in the Asia Pacific region, with Japan and China being the main importers of Malaysian gas.
The oil pipeline system in the country is limited, and transport of the product remains largely dependent on tankers and onshore vehicles. The country has initiated projects to expand its oil storage capacity based on a capacity shortage in Southeast Asia, particularly in Singapore; Malaysia aims to become a regional storage alternative. Continued investment in refining activity over the last few decades has led to Malaysia generally meeting its domestic requirements. The nation is now looking to expand its refining capacity to supply the region and capitalise on exports.
TotalEnergies has fully acquired Malaysia's SapuraOMV Upstream.
READ MOREMcDermott has won a contract from a Malaysian PTTEP subsidiary to enable gas delivery to a subsea production system tied back to…
READ MOREMalaysia's Petronas is eyeing new investments in the Atlantic Basin in a bid to boost its global LNG market share to 10%.
READ MOREFouad Mohammed Ali, CEO and managing partner of Upstream Solutions, talks to The Energy Year about the company’s role in Kuwait’s oil and gas industry and its…
READ MORERystad Energy has predicted a rise in upstream M&As in Southeast Asia in the next two years based on more than USD 5 million in assets on offer, the energy research…
READ MOREShell has completed the sale of two offshore oil and gas concessions in Malaysia’s Baram Delta, the London-headquartered energy giant announced on Wednesday.
…
Petronas has signed PSCs with local oil and gas players for three offshore clusters under the Malaysia Bid Round 2022, the Malaysian NOC announced on Tuesday.
The A…
READ MOREShell has agreed to sell its non-operating stakes in two offshore blocks in Malaysia’s Baram Delta, the British energy giant announced on Tuesday.
The agreement…
READ MOREShell and TotalEnergies have both reported earnings of more than USD 9 billion in Q3 2022, the two energy giants announced on Thursday.
UK’s Shell announced…
READ MOREWHOSE PLATFORM IS THIS?
ASK US
- Do you have a question for The Energy Year about oil and gas?
- If we know, we’ll tell you.
- If not, we’ll ask the experts in the field.