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Malaysia's Energy Industry

Malaysia

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.

ExxonMobil to transfer Malaysia PSCs’ operatorship
NEWS
Malaysia - July 19, 2024

ExxonMobil will transfer operatorship of two key PSCs in Malaysia to Petronas Carigali.

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SapuraOMV Upstream brings key Malaysia gasfield on line
NEWS
Malaysia - July 12, 2024

SapuraOMV Upstream has launched gas production at its operated Jerun field off the coast of Malaysia.

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Petronas doubles North America LNG fleet
NEWS
Malaysia - July 09, 2024

Ahead of LNG Canada's start-up, Petronas has added three LNG vessels to its North America-focused fleet.

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Sapura wins underwater services contract in Malaysia
NEWS
Malaysia - April 30, 2024

Sapura Energy has been awarded a five-year contract from Thailand’s PTTEP for subsea services in Malaysia.

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TotalEnergies acquires Malaysia’s SapuraOMV for $530 million
NEWS
Malaysia - April 22, 2024

TotalEnergies has fully acquired Malaysia's SapuraOMV Upstream.

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McDermott wins Malaysia offshore works from PTTEP
NEWS
Malaysia - March 27, 2024

McDermott has won a contract from a Malaysian PTTEP subsidiary to enable gas delivery to a subsea production system tied back to the Kikeh FPSO.

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Innovations in oil well technology TEY_post_Fouad_Mohammed_Ali
Interview
Kuwait - April 07, 2023

Fouad 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…

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