Malaysia’s state-run oil company, Petronas, has completed the official transfer of its operatorship for the Kebabangan Cluster production sharing contract (KBBC PSC) in Sabah, Malaysia, to ConocoPhillips Sabah Gas.
This move positions ConocoPhillips Sabah Gas, a subsidiary of US energy giant ConocoPhillips, as the sole operator of the KBBC PSC.
The strategic development, orchestrated by Malaysia Petroleum Management (MPM), is expected to ensure the economic viability of future gas field developments and support the energy security of Sabah.
The KBBC PSC, which comprises a cluster of oil and gas fields, was previously managed by Kebabangan Petroleum Operating Company, a joint operation including Petronas Carigali, Shell Energy Asia and ConocoPhillips Sabah Gas.
Chief Minister of Sabah Datuk Seri Panglima Haji Hajiji said: “Sabah is rapidly emerging as a preferred destination for oil and gas investments, thanks to the strategic developments and partnerships championed by PETRONAS and its industry collaborators.
“These initiatives underscore the vast potential of Sabah’s resources and reinforce our commitment to driving economic growth and creating opportunities for our people. We look forward to further collaboration with PETRONAS in the best interest of Sabah.”
The Kebabangan Cluster has a gas export capacity of up to 750 million standard cubic feet per day (mscf/d).
With the PSC now extended until the end of 2050, commercial agreements have been designed to make upcoming gas field developments in the cluster more economically attractive.
MPM senior vice-president Datuk Ir. Bacho said, “We thank the Sabah State Government for their support in fostering a conducive environment for oil and gas investments. This collaboration reflects our shared commitment to realising business growth and enhancing energy security.
“We are also pleased to welcome ConocoPhillips’ expanded role in Malaysia’s upstream sector, which underscores the continued confidence in the nation’s energy potential.”
Earlier this month, Petronas reached a final investment decision regarding the development of the Hidayah field in the North Madura II Contract Area in East Java, Indonesia, through its subsidiary PC North Madura II.
