Since its establishment in 1974, PETRONAS, through its key division Malaysia Petroleum Management (MPM), has been a driving force in shaping Malaysia’s upstream oil and gas (O&G) sector. With innovative strategies and a commitment to sustainability, MPM has solidified Malaysia’s position as a competitive energy hub in the region.
Over the past 50 years, this sector has attracted cumulative investments of RM700 billion, making it a cornerstone of the nation’s economy. According to Datuk Ir. Bacho Pilong, MPM Senior Vice-President, 2025 is set to be a record-breaking year, with investments exceeding RM60 billion and a production target of two million barrels of oil equivalent per day.
MPM’s Strategy: Innovation Meets Sustainability
MPM employs a “clustered exploration” approach to maximize resources in mature geological areas. Using advanced technologies like seismic surveys and in-depth data analysis, this strategy has unlocked new potential in previously explored regions.
In addition to innovation, MPM prioritizes environmental responsibility. “How can we monetize these resources responsibly while reducing carbon emissions? The world needs more energy, but with fewer emissions,” Bacho emphasizes, highlighting PETRONAS’ commitment to its net-zero carbon aspirations.
Malaysia Bid Round (MBR): Attracting Global Investors
Revitalized in 2021, the Malaysia Bid Round (MBR) has successfully drawn interest from international players such as SK Earthon and Inpex Corp, alongside local companies like Dialog and Petra Energy. MBR offers competitive fiscal terms, such as Enhanced Profitability Terms (EPT), ensuring attractive returns for investors.
In 2024, PETRONAS launched MBR+, a year-round platform providing additional investment opportunities outside the annual bid cycle. Leveraging the PETRONAS myPROdata platform, investors gain access to comprehensive insights, streamlining evaluations and enabling informed decision-making.
A Promising Future for Upstream Oil & Gas
MPM is focused on exploring five untapped basins, including Langkasuka and Semporna, with a hydrocarbon potential of up to 4.2 billion barrels of oil equivalent. With technologies like artificial intelligence, PETRONAS aims to enhance the success rate of new hydrocarbon discoveries.
Strengthening the OGSE Ecosystem
With over 3,000 active service providers in the upstream sector, PETRONAS is dedicated to increasing local participation, particularly in Sabah. “We aim to shape the industry to benefit the entire value chain,” says Bacho.
Looking Ahead to 2025
The Malaysia Bid Round 2025, set to launch in the first quarter of the year, offers exciting opportunities for investors to explore Malaysia’s upstream O&G sector, including promising areas in Sabah. For more information on investment opportunities and MBR 2025, visit the official PETRONAS MPM website at www.petronas.com/mpm.
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