Kota Kinabalu: Sabah will continue to play a pivotal role in Malaysia’s long-term energy security and economic growth, with Petronas targeting annual upstream investments of between RM50 billion and RM60 billion to sustain production at two million barrels of oil equivalent per day for decades to come.
Petronas Senior Vice President of Malaysia Petroleum Management (MPM), Datuk Ir Bacho Pilong, said the investments are critical to ensuring a reliable energy supply while supporting economic development and future opportunities for the country.
Speaking at the Oil & Gas Services and Equipment Conference and Exhibition Sabah (OGSE Sabah) 2026 at Sabah International Convention Centre (SICC), he said global energy demand continues to rise despite ongoing geopolitical tensions, supply chain disruptions and uncertainty in West Asia.
A key milestone in strengthening cooperation between Petronas and the Sabah Government was the Commercial Collaboration Agreement (CCA) signed in 2021, which enhanced collaboration in upstream activities, gas supply, LNG, downstream investments, industry development, human capital and community programmes.
Bacho said strategic agreements such as the award of the Permata Cluster PSC and the Heads of Agreement for the Mutiara Cluster demonstrate continued momentum in expanding Sabah’s oil and gas ecosystem.
According to him, Petronas is investing approximately RM500 million annually until 2030 to mature frontier basins, with Sabah accounting for the majority of these opportunities.
Looking ahead, Bacho said regional collaboration will play an increasingly important role in unlocking frontier resources, pointing to successful cross-border arrangements involving Thailand, Vietnam and Brunei.
“Sabah has all the ingredients to become an even stronger energy hub for Malaysia and the region’s abundant resources, strategic geography, growing infrastructure, strong partnerships and capable talent.
“What we need now is continued collaboration between Petronas, the Sabah Government, industry players, investors and local communities to translate these opportunities into long-term prosperity for Sabah and Malaysia,” he said.
