Petronas Signs Agreements To Optimise Mature Upstream Assets In Malaysia

KUALA LUMPUR,June,2026 – Petroliam Nasional Bhd, better known as PETRONAS, has entered into several agreements involving selected producing upstream assets in Peninsular Malaysia and Sarawak, marking another strategic move to optimise mature oil and gas assets while sustaining long-term value creation for Malaysia.

The agreements were signed through PETRONAS’ wholly owned subsidiary, PETRONAS Carigali Sdn Bhd, as part of the national energy company’s broader portfolio optimisation strategy. PETRONAS said the move is aimed at developing upstream assets responsibly and sustainably while supporting Malaysia’s long-term energy security and industry development.

Under the arrangement, EnQuest Petroleum Production Malaysia Ltd will assume operatorship and participating interests in the Balingian PSC, SK8 PSC and D35 PSC, while also participating as a non-operating partner in the PM6/12 PSC. These assets are located across Sarawak and Peninsular Malaysia, reflecting PETRONAS’ effort to strengthen the performance of producing fields through strategic partnerships.

The move is significant because mature upstream assets require specialised operational expertise, cost discipline and redevelopment strategies to continue delivering value. By bringing in partners with experience in brownfield and late-life asset management, PETRONAS aims to extend production life, improve recovery and maintain efficient operations across selected producing fields.

According to The Edge Malaysia, EnQuest is acquiring interests in four offshore production sharing contracts in Malaysia for up to US$833 million, equivalent to about RM3.38 billion. The report said EnQuest will assume operatorship in Balingian, SK8 and D35-D21-J4 in Sarawak, while also taking part as a non-operating partner in PM6-12 in Peninsular Malaysia.

If completed, EnQuest is expected to hold a 90 percent stake in Balingian, 100 percent of SK8, 50 percent of D35-D21-J4, and 30 percent of PM6-12. Together, the assets produce more than 100,000 barrels of oil equivalent per day, with production expected to be sustained through the end of the decade.

For EnQuest, the proposed acquisitions represent a major expansion of its Southeast Asian portfolio. The company said the deal would add about 57.4 thousand barrels of oil equivalent per day of production, 138 million barrels of oil equivalent in 2P reserves and 208.3 million barrels of oil equivalent in contingent resources.

The agreements also include an important state participation component through TI Exploration & Production Sdn Bhd, which will hold a non-operated participating interest in the PM6/12 PSC. PETRONAS said this reflects its effort to enable state-linked entities to build capabilities and participate meaningfully in Malaysia’s upstream petroleum sector.

TI Exploration & Production is a joint venture between TI Petroleum Sdn Bhd, a wholly owned subsidiary of Terengganu Inc, and Ping Petroleum Ltd, an independent upstream company with expertise in late-life oil and gas assets and brownfield redevelopment.

PETRONAS said the partnerships are designed to bring together complementary strengths to support continued operations, technical exchange, operational learning and capability development within Malaysia’s upstream ecosystem. The company added that the arrangements are expected to support sustained production, maximise resource recovery and strengthen the resilience of the country’s upstream sector.

Mohd Jukris Abdul Wahab, Chief Operating Officer and Executive Vice President & CEO of Upstream PETRONAS, said the partnerships reflect PETRONAS’ responsibility to manage national resources responsibly while continuing to create value for Malaysia and its stakeholders.

He said that as these assets mature, it is important for them to be supported by the right partnerships to sustain value creation responsibly over the long term. He also noted that the approach creates opportunities for state participation while bringing in partners with relevant capabilities and operating experience.

From an industry perspective, the agreements show how Malaysia is seeking to maximise the value of existing oil and gas infrastructure rather than relying only on new discoveries. Mature fields often require renewed investment, technology, maintenance and redevelopment planning to keep production stable and commercially viable.

The deal also highlights the continued importance of the upstream oil and gas sector to Malaysia’s energy security. While the country is expanding into cleaner energy and low-carbon solutions, existing upstream assets remain essential for maintaining supply reliability, supporting industrial activity and generating national revenue.

For PETRONAS, the portfolio optimisation strategy allows the company to focus on asset stewardship while allowing experienced partners to bring specialised technical and operational strengths. This can help improve efficiency, extend field life and unlock additional value from mature producing assets.

For EnQuest, the transaction represents a major growth opportunity in Malaysia. The company said the proposed acquisitions would more than double its production and significantly expand its reserves and cash flow base, while strengthening its exposure to Southeast Asia.

The agreements are also expected to support Malaysia’s local oil and gas services ecosystem. Continued activity in mature fields can create opportunities for service providers, technical specialists, maintenance contractors and state-linked companies involved in upstream operations.

PETRONAS’ latest agreements reflect a strategic effort to balance national energy security, resource optimisation, state participation and long-term value creation. By combining PETRONAS’ domestic resource knowledge with the technical strengths of partners such as EnQuest and TI Exploration & Production, Malaysia aims to ensure that its mature upstream assets continue contributing to the national economy.