Malaysia - Commentary & Company landscape

In this article looking at the upstream business in Malaysia, I will reflect on some of the major changes and activities we have seen this year and look at the current company landscape.

The good

Malaysia continues to be a poster child for how a maturing producer country can attract new companies and investment through listening to the industry and making changes on the back of this.

Key examples are:

• Consistent and well communicated bid rounds, with exploration, DRO and LLA offerings.
• Fiscal model improvements based on feedback and terms that fit the assets being offered.
• Undeveloped fields being relinquished and offered as DROs.
• Actively looking to attract new companies. I would imagine that both BP and Eni were courted before they made their re-entries in in mid-February 2025.

It doesn't seem like a hard model to follow for other countries in the region who want to boost investment.

The bad

The main issue is the continuing power struggle between Central government / PETRONAS, and the Sarawak government / PETROS. This has been ongoing for a number of years and, just when it looks like agreement has been reached, a fresh point of contention comes up.

It seems pretty much agreed that PETRONAS will continue to look after MLNG feedstock and sales, whilst PETROS will be the aggregator for domestic gas. However, we are still seeing operators being uncertain about where payments should go and we have also seen Shell's GTL project fall between the cracks.

The impacts on oil and gas activity have been significant and include:

• No new exploration blocks have been offered in Sarawak in either MBR 2024 or MBR 2025, although some DROs have been offered.
• There has been a lack of FIDs in Sarawak, with key feedstock projects for MLNG failing to take FID. The biggest example of this is Lang Lebah, where it is unclear if it was primarily the ongoing political issues or the unexpectedly high development costs that resulted in the FID being delayed. Given the project was targeting production of 1 Bcf/d with peak production before 2030, the delay has potential to leave MLNG significantly short of gas in a few years. On the flip side, this may open up opportunities for other developments to skip the queue, but only if the political situation allows.

Production

The oil and gas opportunities in Malaysia can be split between the three main producing provinces: Peninsular Malaysia, Sarawak and Sabah, with the MTJDA also contributing some volumes. However, there is limited new data on the split of production between these provinces and therefore I have chosen to show the production for Malaysia as a whole below:

As can be seen, Malaysia has done a good job in maintaining gas production, whilst oil production has declined by almost 30% since 2015.

Bid rounds

Malaysia have really upped their game when it comes to bid rounds over the last few years, with consistent and well thought out offerings and very professional launches combined with good data availability and evolving terms. They have generally launched the round early in the year, with offerings for exploration, discovered resources (DRO) and late-life assets (LLA). The chart below summarizes the offers and awards from the last few bid rounds. In addition, technical study opportunities have also been offered.

More detailed analysis can be found in my articles on the last three bid rounds.

• MBR 2022 awards and 2023 launch: https://www.dhirubhai.net/pulse/malaysia-mbr-2022-awards-2023-launch-robert-chambers/.
• MBR 2023 awards and 2024 launch: https://www.dhirubhai.net/pulse/malaysia-mbr-2023-awards-2024-launch-robert-chambers-go8ye/.
• MBR 2024 awards and 2025 launch: https://www.dhirubhai.net/pulse/malaysia-mbr-2024-awards-2025-launch-robert-chambers-3cuge/.

2024 M&A summary

2024 saw a steady stream of M&A deals in Malaysia, with five deals spread across the year. However, the value was very much front end loaded, with the two largest deals coming in Q1 and Q2.

The two large deals saw TotalEnergies acquire the OMV and Sapura interests in SapuraOMV across two separate deals.

• At the end of January, TotalEnergies announced that they had agreed to acquire OMV's 50% interest in SapuraOMV. The transaction was for a consideration of US$ 903 million (including the transfer of a US$ 350 million loan granted by OMV to SapuraOMV). The deal completed in December.

• In late-April, TotalEnergies announced that they had agreed to acquire Sapura Energy's 50% interest in SapuraOMV. The transaction was for a cash consideration of US $530.3 million, in addition Sapura Energy was relieved by TotalEnergies of a US $175 million obligation in respect of a financing facility extended by OMV to SapuraOMV. The deal also closed in December.

We also saw one "deal" that saw a change in operatorship for a major asset.

• In mid-July, ExxonMobil agreed to pass operatorship of its two Peninsular Malaysia PSCs to PETRONAS Carigali. The two PSCs are held 50:50 between the two companies, with ExxonMobil being the legacy operator. This was not an unexpected change.

The remaining two deals involved exploration acreage:

• In late-August, Hibiscus Petroleum announced a deal to acquire a 30% stake in the PM-327 exploration block from PETRONAS Carigali. The farm-in deal is effective from 5th July 2024 and is currently pending approvals but, once complete, the rights holdings will be PETRONAS Carigali (70% + operator) and Hibiscus Petroleum (30%).
• In December, Seascape Energy announced they had signed a deal with INPEX to farm-down their interest in Block 2A, located offshore Sarawak, Malaysia. INPEX will take a 42.5% operated interest, with Seascape Energy retaining a 10% interest. Completion is expected at the end of Q1 2025. Once complete, the rights holdings will be INPEX (42.5% + operator), PETRONAS (40.0%), PETROS (7.5%), and Seascape (10.0%). The deal sees Seascape fully carried through the exploration phase, including the planned exploration well. In addition, they will receive US$10 million in cash and reimbursement of about US$0.5 million in historic costs. A further contingent payment of US$10 million will be payable on a commercial discovery.

More details can be found in my individual deal analyses and quarterly summaries.

Company landscape

I have expanded the number of companies covered from last year a but haven't been able to access sufficient production data to be able to look at the production by company.

International companies - The majors

The start of 2024 saw big moves by TotalEnergies, with two deals to acquire the 100% in SapuraOMV, giving them production and near-term development potential. Then February 2025 saw some very interesting moves related to the award of two Technical Evaluation Agreements (TEA) that fell under MBR 2024. These were for the Langkasuka Basin and the Layang-Layang Basin, with BP and Eni re-entering Malaysia through these awards and TotalEnergies expanding their footprint. Both awards were alongside a number of other players.

With these new awards, we now see all of the majors having an active role in Malaysia.

• BP: surprised plenty of observers, me included, by entering Malaysia (well, re-entering after a 20+ year absence) when they were one of a number of companies awarded a TEA in February 2025. The TEA is for the Langkasuka Basin, with the full list of companies awarded the TEA being BP, Eni, PETRONAS Carigali, TotalEnergies, PTTEP, and Pertamina. The basin sits offshore Western Peninsular Malaysia in the Straits of Malacca. Their interest in the basin may be driven by recent success in the Andaman Sea in Indonesia.
• Chevron: in theory, they acquired a position in 2023 through the acquisition of Hess. However, the deal is currently with the lawyers and doesn't appear overly close to a resolution. If the deal completes, then the legacy Malaysia and MTDJA from Hess' portfolio could be considered for divestment. I looked at this more in this article: https://www.dhirubhai.net/pulse/ma-chevron-acquire-hess-what-means-region-robert-chambers-ew6xe/.
• ConocoPhillips: have a compact but diverse portfolio in Malaysia, with production coming from their stakes in Block J (Gumusut-Kakap), Block G (Malikai, Siakap North-Petai), the Kebabangan PSC (Kebabangan Cluster) as well as exploration blocks: SK-304, WL4-00, and SB-405. This year has seen them awarded a stake in the Ubah Cluster DRO that was offered in MBR 2024, alongside Shell and PETRONAS. In addition, they were also awarded sole operatorship of the Kebabangan cluster (no other change in rights holdings), as PETRONAS wanted a single company to operate rather than the previous JV. On the development front, they have continued to progress towards FID of the Salam-Patawali oil development in WL4-00. They will also be hoping that the ZLNG FLNG vessel comes onstream as planned to allow them to increase production from the Kebabangan Cluster that has been limited due to the problems with the SSGP. On the Global front, it was a big year for ConocoPhillips with the acquisition of Marathon Oil. There is no suggestion that they are looking to trim their portfolio but, if there was a desire, then their Malaysia assets could be an option give that they are their only remaining assets in Southeast Asia.
• Eni: as per BP, they have re-entered Malaysia after a 20+ year absence, with a role in the TEA for the Langkasuka Basin. In addition, we have just seen them announce that they are in talks to form a JV with PETRONAS that would oversee select assets in Indonesia and Malaysia. This would be massive for both Eni and PETRONAS, and we await further details of the Malaysian assets that may be included.
• ExxonMobil: hold a significant producing position offshore Peninsular Malaysia in the form of the 1995/2008 PSC and the Gas PSC, both of which they hold a 50% interest. They entered the year as operator of these assets but this year saw them transfer the operatorship to PETRONAS, with no shift in the rights holdings. This transfer may (or may not) be a part of extension negotiations related to these assets, with the Gas PSC set to expire in 2027 and the 1995/2008 PSC set to expire in 2033. Back in 2019, ExxonMobil started a sales process for these assets that ultimately failed. It is unclear if they may re-offer them and whether the extension/expiry will influence this decision. Regardless, they certainly haven't shown any indication that they want to expand their position.
• Shell: have a very long history in Malaysia and operate a large number of key assets. They have stated that Malaysia is one of their key focus areas, so they aren't going anywhere. This year saw them pick up a stake in the Ubah Cluster DRO, alongside ConocoPhillips and PETRONAS, that was offered in MBR 2024. The discovered fields have potential to be developed through the Kebabangan cluster. I would expect them to continue to be active in bid rounds, with the focus being on Sarawak and Sabah.
• TotalEnergies: 2024 was a big year for TotalEnergies in Malaysia, with the acquisition of both the OMV and Sapura Energy stakes in SapuraOMV. This was a big strategic shift to both the country and the region as a whole as they appeared to be on an exit trajectory. The deals give TotalEnergies a good level of base production, which increased in July when the Jerun field came onstream. There are a number of undeveloped fields across the acquired PSCs that could provide upside. In February 2025, they were awarded TEAs for both the Langkasuka Basin and the Layang-Layang Basin. Given the gathering momentum, we could certainly see them look at further options for growth in Malaysia, with gas-to-LNG likely the focus.

International companies - Mid-caps

The mid-cap pool is pretty small in the Malaysia, with local companies often competing for assets in this space.

• EnQuest: this year we have seen EnQuest make some positive moves to grow their portfolio in a number of directions. In Malaysia, their legacy position included a 50% operated interest in the PM-08/Seligi PSC and an 85% operated interest in the contiguous PM-409 exploration block that was awarded in December 2019. This year has seen them expand into Sarawak, taking a 42% operated stake in the DEWA Complex Cluster DRO, alongside Seascape Asia and PETROS, that was offered as a part of the MBR+ round. In December, we saw them expand their resource at PM-08, with the annexation of non-associated gas and condensate resources at the Seligi field into the PM-08 PSC. This will, reportedly, allow them to develop 155 Bscf (100% basis) of additional gas resource at the field. We also saw them make a new country entry into Vietnam, which indicates their appetite for growth. They also stated that they are "working towards "another potential new country entry in South East Asia", so definitely a company to watch. I can see them looking at further opportunities in Malaysia but they may also relinquish PM-409 where they drilled the Keranji-1 exploration in late-2023 that came up dry and where they have not indicated further drilling plans.
• International Petroleum Corp. (IPC): a subsidiary of Lundin Petroleum, hold 100% interest in PM-307 that contains the producing Bertam field. It seemed like they were adding to this in 2024, with the announcement of the award of the Tembakau Cluster DRO (100% through two subsidiaries). However, it would appear there was a last minute change of heart as the cluster is now being offered as the Temaris Cluster DRO in MBR 2025.
• KUFPEC: have a small but diverse portfolio in Malaysia. Their current production comes from PM-304, where they hold a 29.4% interest. They then have a 42.5% stake in SK-410B, with the block containing the Lang Lebah and Paprika discoveries. In addition, they also hold a 35% stake in the SK-304 exploration block. Their current focus is on getting Lang Lebah to FID and, once they get it onstream, the development should give them good production growth and they may show an interest if other gas assets become available.
• OMV: we waved goodbye to OMV this year as they divested their 50% stake in SapuraOMV to TotalEnergies. The deal was announced in January and completed in December.
• Mubadala Energy: their only current asset in Malaysia is a 55% operated stake in SK-320 that contains the producing Pegaga gas field. They will be looking to maintain production at the field, with the Cengkih-1 discovery (September 2022) an option for backfill. They haven't taken on any further acreage in recent bid rounds but could show interest if the right opportunity were to arise, as they were linked to the SapuraOMV divestiture before the sale to TotalEnergies.

Outside of these companies, we have generally seen some exits in recent years. Repsol completed the sale of their Malaysian assets to Hibiscus in early 2022, and MedcoEnergi had a minor exploration interest in PM-322 (coming from the Ophir acquisition) that they relinquished in 2022.

I can't see Repsol returning but MedcoEnergi were linked to the SapuraOMV sale and will be linked to other assets on the market given their recent M&A trajectory in the region.

International companies - Smaller players

There have been many smaller international investors in Malaysia. However, I will put my focus on those with a more international investor base.

• Jadestone Energy: have had a clear regional growth strategy and entered Malaysia in 2021 when they acquired SapuraOMV’s Peninsular Malaysia assets (PM-318 / PM-323 / PM-329). They have continued to expand in Malaysia, taking a 60% operated stake in the nearby PM-428 exploration block that was offered in MBR 2023 as well as a 100% stake in the Puteri Cluster DRO that was offered in the MBR+ round. We will have to see how the changes at the top of the company will impact their desire for further acquisitions but early indications are they will continue to look for assets that fit well in their portfolio and offer value.
• Petrofac: the service company hold their only current upstream asset here in Malaysia, with a 35.3% operated stake in PM-304 that they entered in 2004. However, Petrofac's financial situation isn't great and they look to be focusing on the service sector again. It is therefore no surprise that there has been plenty of discussion about them divesting their asset, and I believe there was a failed sales process in 2019. Any sale would need to take into consideration the fact that the current PSC expires in September 2026, and I believe we are now at the point that Petrofac will likely continue to this date and then relinquish the asset.
• ROC Oil: now a 100% subsidiary of Chinese company Hainan Mining, who are in turn a 100% subsidiary of Fosun International Limited (some kind of shell game) hold a 30% interest in the D35/D21/J4 PSC that produces oil and gas from these mature fields. I have not seen any indication that they will look to expand in Malaysia and it is more likely that they could divest the asset and focus on China.
• Rex International: Singapore-listed Rex International entered Malaysia through the award of two of the DROs in August 2021, namely the Rhu-Ara Cluster and the Diwangsa Cluster that were both offered in the 2020 bid round. They were awarded a 95% stake in these DRO's, with Duta Marine taking the other 5%. However, they relinquished the two DROs in August 2023 after choosing not to develop the fields at the develop/drop point. They will likely continue to monitor opportunities in the country but will only re-enter for the right one.
• Seascape Asia (previously Longboat Energy): it has been a transformative couple of years for the now re-branded company. First, they entered Malaysia in February 2023 with the award of a 36.75% operated stake in Block 2A that was offered during the 2022 bid round. Then, in mid-September 2023, they announced a deal to acquire Topaz Number One, who themselves had entered Malaysia through the award of a 15.75% stake in the same block, with Seascape therefore holding a 52.5% operated stake. This year has seen further big moves. In July, they sold their Norwegian assets to JAPEX and then re-branded from Longboat Energy to Seascape Asia shortly after, making a clear strategic shift to put their full focus on Southeast Asia. In October 2024, they were awarded a 28% stake in the DEWA complex cluster DRO that was offered in the MBR+ round, with EnQuest and PETROS being their partners. Finally, December saw them announce the divestment of a 42.5% stake in Block 2A to INPEX. Seascape retain a 10% interest in the block, with the deal seeing them receive an initial US $10 million as well as being carried through the exploration period. Given their success, we can expect to see them look at further acquisitions in both Malaysia and across Southeast Asia.

In terms of potential new entrants, we can expect some of the smaller regional IOCs to continue to look for opportunities in Malaysia. In addition, there are a number of traditional North Sea players who are looking at opportunities in Malaysia and Southeast Asia, given the more favourable above-ground environment and the successes being had by companies such as Seascape Asia and Valeura Energy in the region.

Domestic companies

A number of domestic players have emerged in Malaysia including the two state NOCs (PETROS and SMJ). A few have taken on larger asset acquisitions but the majority have focused at the smaller-end, taking on some of the Discovered Resource Opportunities (DROs) or late-life assets with decent terms.

• DIALOG: have a stake in two mature producing assets. The first is a 20% stake in the D35/D21/J4 PSC that they have held since 2012, and the second is a service contract for the Bayan field that they have held since 2021. In January 2023, they were awarded a 70% operated stake in the Baram Junior Cluster DRO that was offered in MBR 2022. This year has seen them awarded a further DRO, with a 100% stake in the Raja Cluster DRO that was offered in the MBR+ round. They have also made progress at the Baram Junior Cluster, where they took FID to develop the cluster last month (January 2025), which was the develop/drop point for the DRO. I can see them continuing to look at further DRO offerings.
• Duta Marine: entered Malaysia's by taking a 5% stake in the Rhu-Ara Cluster and the Diwangsa Cluster in August 2021, alongside Rex International. I have not seen it confirmed, but I imagine they relinquished their stake at the same time as Rex in August 2023. They also have a stake in two DROs in partnership with Ping, namely the Meranti Cluster and the BETA Cluster.
• EPOMS: the legacy operations and maintenance services company has been active in picking up DROs. Firstly, with the award of the Bambazon Cluster that was offered in MBR 2023, which was then followed up with the award of the Erb South Cluster that was offered in MBR 2024. They may continue to look at other DROs but will also need to work up those awarded.
• Hibiscus Petroleum: made a big move in 2021/22 by acquiring Repsol's Malaysia assets. This added to their legacy operated interest in the North Sabah EOR PSC that they acquired from Shell in 2018. In the last year, we have seen them acquire a 30% stake in the PM-327 exploration block from PETRONAS Carigali, with any discoveries having potential to tie-into their existing infrastructure. They also made a new country entry by acquiring TotalEnergies stake in Block B in Brunei, although this deal was on the negotiating table for a couple of years. I can certainly see them looking at expansion options but they will also need to consolidate and understand their acquired positions.
• Petra Energy Development: their legacy position was based on the 2021 award of the SK-433 exploration block, in a JV with UZMA. This year, we saw them awarded a 100% stake in the Banang oilfield LLA, a field in which they have had a long history through previous RSCs and TSAs. I don't expect them to chase further opportunities in the upstream space.
• Ping Petroleum: entered Malaysia through the award of two of the DROs offered by Malaysia in the 2022 bid round, namely the A Cluster and the Meranti Cluster and then followed this up with the award of the Abu Late Life Asset later in the year. I understand that they are looking to make some further developments at Abu, with a MOPU possibly lined up. However, I have not seen any progress at either the A Cluster or the Meranti Cluster and we are at the develop / drop point.
• Sapura Energy: we said goodbye to Sapura Energy this year as they divested their 50% stake in SapuraOMV to TotalEnergies, exiting upstream. The deal was announced in April and completed in December.
• Upland Resources: a new entrant in 2022, when they were awarded a technical study for SK-334, onshore Sarawak. They are keen to convert this into a formal PSC but it appears to be lost in the internal machinations of Sarawak oil and gas politics and PETROS currently have it listed as one of their assets on their website. If they were to be awarded a stake, then they have some prospects lined up to drill.
• UZMA: the service company took a step into the upstream pace with the 2021 award of the SK-433 exploration block, in a JV with Petra Energy Development. They have not made any subsequent moves and it isn't clear how keen they are to remain in the upstream space.
• Vestigo: was set up by PETRONAS to enable the development of small fields by freeing them from some of the normal constraints. This year, they were awarded the NBE cluster DRO on a 100% basis that was offered in the MBR+ round.

Other smaller domestic companies that have been involved in recent awards are EPMV and UMDP.

State oil companies

It feels like these deserve a place of their own given their increasing role within their states and their differing strategies.

• PETROS (Petroleum Sarawak): are definitely taking the more aggressive path. Since their formation in 2017, the state oil company of Sarawak has significantly increased its interest in the upstream sector in Sarawak. They now have stakes in five producing assets: Kumang Cluster PSC, MLNG I PSC (both acquired in 2021), SK-407 (2022) Baram Delta EOR PSC, SK-307 (both in 2023). In addition, they have taken a stake in all new exploration, DRO and LLA awards in Sarawak. Whilst my opinion is that they should be a little more selective, I would expect them to continue to take a stake in all awards as well as looking to acquire stakes in further producing assets in Sarawak. I won't get into the bigger complexities of gas aggregation in this article.
• SMJ Energy (Sabah state oil co): have been gentler in their approach and currently hold an interest in the producing Samarang PSC (acquired in 2023) as well as back-in options for 20% in both the SB-409 and SB-403 exploration PSCs. This year, we have seen this trend continue, with SMJ awarded a 7.5% carried stake in the SB-306A and SB-306B exploration blocks that were offered as a part of MBR 2024 and I believe they also have a further 7.5% back-in option on these PSCs. Going forward, I expect a similar approach, with them looking at additional carried/back-in options on exploration PSCs as well as looking at existing discoveries where they can be carried through to production. They may also look at acquiring some further producing assets from PETRONAS.

Japanese companies

Malaysia is an attractive proposition for Japanese companies who are looking to get involved in Gas-to-LNG projects where they can also act as offtakers. Given the importance of LNG, Japanese companies have an interest in all of the MLNG trains.

• Mitsubishi: held legacy stakes in MLNG Satu (5%), MLNG Dua (10%), and MLNG Tiga (4%, through an 80% interest in Diamond Gas). In September, they announced a new deal to extend their current 10% stake in MLNG Dua for a further ten years. In addition, they will also acquire an addition 10% stake in both MLNG Dua (now 20%) and MLNG Tiga (now 14%).
• ENEOS Xplora (JX Nippon): hold stakes in MLNG Tiga (10%), MLNG Train 9 (10%).
• JAPEX: hold stake in MLNG Tiga (1%, through an 20% interest in Diamond Gas).

In addition, Japanese companies hold a stake in a number of upstream assets, with the focus on gas fields that supply MLNG. They have also been showing a keen interest in CCUS collaborations.

• ENEOS Xplora (JX Nippon): have legacy production from an indirect interest in the SK-10 asset (58.875% indirect stake through a 75% stake in the direct operator), with the production coming from the Helang, Layang and Beryl fields. They had relinquished a couple of holdings in 2019 and had been pretty quiet in Malaysia. However, in December 2022, they were awarded the BIGST cluster as a technical study that was offered in MBR 2020, with a view to developing the fields where CCUS will have an important role to play. This year, they were formally awarded a PSC for BIGST, with special terms set out.
• INPEX: also have legacy production from an indirect interest in the SK-10 asset (11.25% indirect stake through a 75% stake in the direct operator). More recently, they have shown fresh interest in exploration, taking a stake in SK-418 and SK-4E in MBR 2022 and then taking a stake in SK-510 in MBR 2023. The last year has seen them further grow their Malaysian portfolio, with both the farm-in to Seascape Asia's Block 2A and the award of two exploration blocks in Sabah (SB-306A & SB-306B) that were offered in MBR 2024. In addition, they were also one of the awardees of the Layang-Layang Basin TEA.
• Mitsubishi: also have legacy production from an indirect interest in the SK-10 asset (4.725% indirect stake through a 6.3% stake in the direct operator). In addition, they also hold a 30% interest in SK-310 through their Diamond Energy subsidiary. SK-310 contains the producing B-15 field as well as the B-14 discovery, the block is now operated by TotalEnergies after they acquired SapuraOMV. The increased investment in MLNG this year (see above) clearly shows their continuing interest in Malaysian LNG but it is unclear if this stretches to upstream growth.
• MOECO: hold a non-operated (25.5%) interest in the SK-405B PSC that is operated by PTTEP. Exploration success was seen at Sirung-1 in 2021, with successful appraisal through Sirung-2 in 2023 along with a further discovery at Chenda-1. They have not been active in recent rounds so could either focus on developing the discoveries or potentially farming out.
• JAPEX: despite their stake in MLNG Tiga, JAPEX don't have any upstream interests in Malaysia. Outside of upstream, in January 2022, they signed a joint study with PETRONAS to conduct an investigation of suitable sites for CO2 storage and other elements of the CCUS value chain.

Whilst JOGMEC won't typically invest directly in upstream projects, they will help Japanese companies to look at opportunities where funding is required. We have seen them work in collaboration with ENEOS (JX) on the BIGST cluster, with a particular interest in CCUS and the potential for Hydrogen exports to Japan. They will also assist Japanese companies with their examination of other 'non-traditional' opportunities in Malaysia.

Korean companies

Korea has long been an offtaker of LNG from Malaysia, but has shown little interest in the upstream side of things. However, this has all changed over the last few years, with two new entrants:

• POSCO International: entered Malaysia through the award of PM-524 (80%), with the block offered in MBR 2020 and signed in November 2021. There has been some indication they may be interested in farming down some of their interest.

• SK Earthon: entered Malaysia through the award of SK-427 (85%), with the block offered in MBR 2021 and signed in April 2022. This year has seen them increase their presence with the award of the Ketapu Cluster DRO (85%) in September. The DRO is contiguous to SK-427 and should improve the economics of exploration prospects.

The regional NOCs

Southeast Asia has seen the regional NOCs take an increasingly important regional role outside of their home countries, with both Pertamina and PTTEP now established in Malaysia. We also see the NOCs of Vietnam and Brunei having a smaller role.

Both Pertamina and PTTEP acquired major positions in Malaysia through the acquisition of stakes in Murphy's Malaysian assets (SB-K (Kikeh), SB-H (Rotan), SK-309 & SK-311 (a number of fields including West Patricia), SK-314A (exploration), and SK-405B (exploration). Firstly, Pertamina entered in 2014 when they acquired a 30% interest, then PTTEP acquired the remainder of Murphy's assets in 2019.

• Brunei Energy Exploration: have a 10% interest in the Shell-operated SK-318 block that contains the producing Timi gas field as well as the Rosmari and Marjoram discoveries that are being looked at for development but are hampered by the high H2S content of the fields. Brunei Energy Exploration have not shown any sign of expanding their position and their SK-318 stake would make a good acquisition target.
• Pertamina: entered in 2014 with the acquisition of a 30% stake in the Murphy's assets. Have been a pretty quiet non-operated partner since, so it was a bit of a surprise to see them recently pick up a stake in SK-510, offered in MBR 2023. They have not moved to operate any of the assets. This year saw a further award, with Pertamina also being one of the awardees of the Langkasuka Basin TEA in February 2025.
• PTTEP: have shown an interest in Malaysia, and the potential for Malaysian gas to help to offset declining domestic production, for almost ten years. In 2016, they were awarded SK-410B (Lang Lebah), their first operated asset in Malaysia and then acquired a 10% stake in MLNG Train 9 in 2017. The acquisition of the Murphy assets came in 2019, and really cemented their position as an operator in the country. At the same time, they were awarded two new exploration blocks that were offered under MBR 2018; PM-407 and PM-415. Since some of these initial moves, they have put a lot of effort into exploration as well as taking new acreage regularly through the bid rounds. In 2023, they made seven new discoveries as well as successful appraisal with Sirung-2. This year saw a further award, with PTTEP being one of the awardees of the Langkasuka Basin TEA in February 2025. However, their planned development of Lang Lebah looks to be delayed, with an announcement in December that the bids for some of the EPC packages were above expectation and that the PETRONAS / PETROS dispute is also an ongoing risk factor.
• PetroVietnam (PVEP): their only remaining interest is a 30% stake in the PM3-CAA PSC, that continues to be critical for gas supplies into Vietnam. During better times for the company, they had pursued other upstream opportunities in Malaysia. I don't see these better times returning soon and would expect their focus to be on maintaining production from the PM3-CAA fields.

Assets on the market / potential opportunities

The table below is a view of the current assets on the market together with some of the potential opportunities that I believe could arise this year.

I don't believe that there are any currently active sales processes.

Questions and feedback

As always, I have created this article through my own research and any opinions are purely my own. If you have any questions or feedback on the article then please drop me a DM.