Two state-owned companies, Malaysia’s Petronas and China’s China National Petroleum Corporation (CNPC), have signed a memorandum of understanding (MoU) for strategic cooperation in the oil and gas and liquefied natural gas (LNG) arena.
The MoU is expected to strengthen the two players’ cooperation in the upstream exploration and production of oil and gas internationally, and within the liquefied natural gas (LNG) value chain, among other things. Focus will also be placed on innovation in fields such as specialty chemicals, renewable energy, green hydrogen technology, as well as carbon capture, utilization, and storage (CCUS).
Additionally, the two parties intend to establish an open communication platform to enable the sharing of knowledge and insights, driving the energy transition and working towards sustainable energy development in the region.
The Malaysian firm recently launched two initiatives through its subsidiary Malaysia Petroleum Management (MPM) aimed at strengthening the country’s oil and gas sector and boosting energy security. The dual initiatives encompass the introduction of the integrated well continuity services (IWCS) contract and the planned establishment of the MPM Hydraulic Workover Unit (HWU) Academy.
Meanwhile, CNPC is working on developing the Rovuma LNG project offshore Mozambique with partners ExxonMobil and Eni. The final investment decision (FID) for the project was recently pushed by a quarter, targeting early 2026, whereas it was previously expected to be taken in 2025.