Malaysia offers nine exploration blocks under latest bid round

Petronas, via Malaysia Petroleum Management (MPM), has opened the Malaysia Bid Round 2026 (MBR 2026).

Nine exploration blocks are on offer. These include a potentially high-impact exploration block in the frontier Sandakan Basin offshore East Sabah, high-potential exploration blocks in the emerging West Sarawak Basin and near-field exploration blocks in the mature Malay Basin.

Also available are six discovered resource opportunities that are “ready to develop.” Investors can assess these using existing technical datasets, with phased-development options for early monetization of the resources.

“Malaysia’s energy demand will continue to grow and [the] upstream industry will need to fulfill this demand to power our fast-growing digital economy and manufacturing backbone…," said Datuk Ir. Bacho Pilong, senior vice president of MPM. “To fuel Malaysia’s upstream engine with a steady flow of opportunities, we require upstream investment in the tune of RM 50-60 billion each year.”

In addition, Petronas announced a memorandum of agreement under the "Borderless" initiative between its subsidiary PETRONAS Carigali and Hibiscus Oil & Gas Malaysia.

The initiative is designed to allow E&P companies of different production sharing contracts (PSCs) offshore Malaysia to integrate their respective work plans. Goals include optimizing resource development and supporting the commercial viability of CO₂ management solutions.

Petronas advances Sabah portfolio with new PSC, HoA and farm-out deals

Petronas, via MPM, has awarded a PSC for the Permata Cluster offshore Sabah to London-based Bridge Petroleum.

The small field asset PSC covers an area with existing oil and gas discoveries, with collective development potential of about 10 MMboe.

Bridge, which is new to E&P offshore Malaysia, plans subsea tiebacks to nearby facilities, and it is aiming for first production in 2029. 

Petronas and Sabah Energy Corp. also entered a heads of agreement (HoA) for the Mutiara Cluster on Sabah’s east coast, which was awarded last June to DIALOG Resources under another small field asset PSC.

Also offshore Sabah, Petronas Carigali has signed a farm-out agreement with SMJ Energy, owned by the Sabah state government. This involves transferring to SMJ PCSB’s 20% participating interest in the 2011 North Sabah Enhanced Oil Recovery PSC, operated by DEA-Hibiscus.

Following completion of the transaction, Petronas Carigali’s interest will also climb to 30%.

The PSC covers the shallow-water Barton, South Furious, SF30 and St Joseph fields offshore Sabah.