Kota Kinabalu: Sabah Energy Corporation Sdn Bhd (SEC) announced the exchange of Heads of Agreement (HoA) with Petronas for the Mutiara Cluster, a strategic offshore gas resource located off the coast of Sandakan, here on Monday.
Representing SEC was Chief Executive Officer Datuk Ir Ts Adzmir Abd Rahman, while Petronas was represented by Integrated Hydrocarbon Management Senior General Manager Ziaril Faiz Zakaria.
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The exchange was witnessed by Chief Minister Datuk Seri Hajiji Haji Noor, Petronas President and Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz, Sabah State Secretary Datuk Seri Panglima Safar Untong, SEC Chairman Datuk Annuar Ayub and Malaysia Petroleum Management (MPM) Senior Vice President Datuk Bacho Pilong.
The HoA establishes the commercial and collaborative framework towards a future Gas Sales Agreement, supporting the development and monetisation of gas resources from the Mutiara Cluster to meet Sabah’s long-term energy needs.
With first gas targeted for early 2029, the Mutiara Cluster is expected to play a critical role in reshaping Sabah’s energy supply landscape. SEC's natural gas currently fuels 86pc of the State's power needs, but that supply has been concentrated on the West Coast. The East Coast has relied on small-scale LNG deliveries.
The development of the Mutiara Cluster is intended to address this imbalance by enabling scalable and reliable gas supply to the East Coast at industrial scale, supporting energy security, economic activity, and downstream industrial development in Sandakan and surrounding areas.
Beyond infrastructure, the HoA reflects a shared commitment by SEC and Petronas to strengthen collaboration in unlocking Sabah’s indigenous gas resources responsibly, while supporting a more balanced and resilient energy market across the State.
The Mutiara Cluster development is also aligned with the State’s SMJ 2.0 development agenda and is expected to contribute to sustained investment, job creation, and long-term economic growth.
