Malaysia’s state-owned energy player Petronas has officially transferred its contractual right for a cluster of oil & gas fields in Malaysia to a subsidiary of U.S. energy company ConocoPhillips.
Petronas, through Malaysia Petroleum Management (MPM), completed the transfer of operatorship for the Kebabangan Cluster Production Sharing Contract (KBBC PSC) to ConocoPhillips Sabah Gas Ltd. on January 21, making ConocoPhillips’ subsidiary the sole operator of the PSC.
The KBBC PSC was previously operated by Kebabangan Petroleum Operating Company (KPOC), a joint operating company of Petronas Carigali, Shell Energy Asia Limited, and ConocoPhillips Sabah Gas Ltd.
“Sabah is rapidly emerging as a preferred destination for oil and gas investments, thanks to the strategic developments and partnerships championed by PETRONAS and its industry collaborators,” said Chief Minister of Sabah Haji Hajiji Haji Noor .
“These initiatives underscore the vast potential of Sabah’s resources and reinforce our commitment to driving economic growth and creating opportunities for our people. We look forward to further collaboration with PETRONAS in the best interest of Sabah.”
According to the Malaysian company, with an export capacity of up to 750 million standard cubic feet of gas per day (MMscfd), the continuation of the KBBC PSC until the end of 2050 and other commercial agreements have been structured to ensure future gas field developments remain economically attractive in supporting Sabah’s energy security requirements.
Senior Vice President of MPM Bacho Pilong said: “We thank the Sabah State Government for their support in fostering a conducive environment for oil and gas investments. This collaboration reflects our shared commitment to realising business growth and enhancing energy security. We are also pleased to welcome ConocoPhillips’ expanded role in Malaysia’s upstream sector, which underscores the continued confidence in the nation’s energy potential.”
Of note, at the end of 2024, ConocoPhillips Malaysia New Ventures Limited, Sabah Shell Petroleum Company Limited, and Petronas Carigali secured the Ubah cluster in Malaysia under the deepwater revenue-over-cost PSC.
Situated off the coast of Sabah, the cluster covers five fields, including Ubah, Rempah, Bagang, Batai and Biris.