Malaysia is one of the key oil and gas producers in the Asia-Pacific region with an average daily production of over 1.7 million barrels of oil equivalent in 2018. The country’s remaining commercial reserves are estimated at over 5 billion barrels of oil equivalent contained in more than 400 fields, with gas making up around three-fourth of the mix.
While crude oil has been produced since the early 1900s onshore the Malaysian state of Sarawak, the present day upstream industry has been built upon the development of oil and gas fields in the mostly shallow waters offshore Peninsular Malaysia, Sabah and Sarawak since the 1960s. The establishment of Malaysia’s national oil company, PETRONAS in 1974 heralded an era of progress with new investments from a broader spectrum of upstream investors and the ensuing discoveries, which resulted in production growth, catalyzing the development of various world-class players.
Not many petroleum regions in the world could boast of having a balance between strong presence of the national oil corporation and robust participation of international oil companies. PETRONAS through its subsidiaries operate and co-invest substantially in petroleum arrangement contracts, in partnership with other operators and investors among global super-majors, independent oil companies and other national oil companies from around the world.
The development of the upstream industry provided the basis for the development of Malaysia’s oil and gas industry, with an integrated value chain which has created opportunities for over 3,000 smaller contractors alongside numerous global players to invest in the upstream and downstream sectors of the industry. This ultimately provides high-value employment opportunities and skills transfer to Malaysians, which in turn has transformed the economic landscape of the country for the better.
Malaysia’s Oil & Gas Production
In million barrels of oil equivalent per day (mmboe/d)