Petronas awards first MBR 2025 contract to Dialog, taps Sabah's hydrocarbons
Petronas said the contract, covering a sub-block area within the Sandakan Basin, was awarded to Dialog Resources Sdn Bhd. (Petronas pic)
PETALING JAYA : Petronas has awarded a small field asset production sharing contract (SFA PSC) for the Mutiara Cluster, located off Sabah's coast, through Malaysia Petroleum Management (MPM).
In a statement today, Petronas said the contract was offered via its division, MPM, under the Malaysia Bid Round 2025 (MBR 2025) launched earlier this year.
Petronas said the contract, covering a sub-block area within the Sandakan Basin, was awarded to Dialog Resources Sdn Bhd.
'It will serve as the sole operator with a 100% participating interest in the block,' it said.
The Mutiara Cluster, the first PSC awarded under MBR 2025, is expected to begin production by 2029.
Petronas said it comprises five fields, including Nymphe, Nymphe North, Kuda Terbang, Benrinnes and Mutiara Hitam.
MPM senior vice-president Bacho Pilong said the award reflects growing confidence in Malaysia's upstream opportunities and the competitive terms offered under MBR 2025.
'As an industry shaper, MPM remains committed to facilitating impactful partnerships and catalysing investments that not only advance national energy aspirations but also uplift regional development in collaboration with the Sabah government.
'We also look forward to welcoming more investors to participate in Block SB505, offered in MBR 2025, the next gateway to unlock the potential of the Sandakan Basin,' he added.
Petronas reiterated its commitment to ensuring an optimal and sustainable energy supply, with MPM playing a crucial role in managing the country's petroleum resources and providing stewardship for upstream petroleum activities in Malaysia.
'Strategically located off Sabah's east coast, the contract is envisioned as a catalyst to open up the Sandakan Basin for further exploration.
'It supports a broader value creation and encourages local participation, in line with Petronas's aspiration to position Malaysia as an attractive destination for upstream investments,' it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
an hour ago
- Free Malaysia Today
Ministry engaging laundromat operators on subsidised LPG
A group representing laundromat operators has urged the government to allow them to use subsidised LPG cylinders for their dryers. (Bernama pic) PETALING JAYA : The domestic trade and cost of living ministry is currently engaging with laundromat operators who are demanding they be allowed to use subsidised liquefied petroleum gas. In a Facebook post, its minister, Armizan Mohd Ali, said they took note of the industry's concerns, but any decision on the matter must take into account 'numerous factors'. 'There is a need to adopt a targeted approach rather than implement a blanket policy without a monitoring mechanism.' Armizan said he had informed Sabah industrial development minister Phoong Jin Zhe about this matter after he raised the issue. A few days ago, a group representing laundromat operators had urged the government to allow them to use subsidised LPG cylinders. This was in addition to micro- and small-sized food and beverage traders. The Malay Unified Laundry Association (Mula) said it was disappointed that the domestic trade and cost of living ministry's review of the Control of Supplies Regulations (Amendment) 2021 pertaining to LPG cylinders was only focussing on these F&B traders. It said the laundromat sub-sector mostly comprised small- and medium-sized enterprises that depended on the subsidised gas tanks for their dryers. Currently, any business using over 42kg of LPG at any one time must apply for a scheduled controlled goods permit. Commercial LPG cylinders cost nearly RM70 each – almost three times the rate of subsidised gas tanks. Armizan recently said the 2021 regulations would be reviewed with a focus on the needs of micro- and small-sized F&B businesses, and to provide greater clarity. Until the review is finalised, no legal action will be taken against micro- and small-sized businesses in the F&B sector regarding the use of subsidised cooking gas tanks.
Malay Mail
3 hours ago
- Malay Mail
Microsoft stays the course in Malaysia amid global pullbacks on data centres
KUALA LUMPUR, June 15 — Tech titan Microsoft has reaffirmed its commitment to invest RM10.5 billion in Malaysia, including the development of hyperscale data centres in the Klang Valley. This comes despite reports that the company has paused or delayed similar projects in several countries, including the United States, the United Kingdom, Australia, and Indonesia. 'Microsoft remains committed to our investment in Malaysia to accelerate the nation's AI and cloud adoption,' a representative for Microsoft Malaysia told news portal Free Malaysia Today (FMT). 'As a company, the tariff is something we are watching, but we don't have anything to share right now,' the same unnamed source was quoted as saying, referring to market concerns triggered by US tariffs announced in April. In the same month, Bloomberg reported that Microsoft was scaling back plans for its US data centres in Illinois, North Dakota and Wisconsin, as well as in other countries. The company said these changes reflect the flexibility of its global infrastructure strategy. Last month, Microsoft launched its Malaysia West cloud region in Greater Kuala Lumpur, which includes three availability zones. The facility is expected to offer low-latency connectivity and a resilient digital infrastructure supporting services like Microsoft 365 and Azure. Microsoft is also pushing forward with its AI for Malaysia's Future (AIForMYFuture) initiative to develop local talent. Its managing director Laurence Si previously said the company aims to train 800,000 Malaysians in artificial intelligence by the end of 2025. As of May, more than 400,000 people have already received AI training through the programme, Microsoft Malaysia's legal and government affairs director Adilah Junid told FMT. She encouraged Malaysians to take part via Microsoft's AI Skills Navigator website and the monthly AI Teach sessions at local institutions. 'Microsoft relies heavily on local partners such as Biji-Biji, HRD Corp, Perkeso, Pepper Labs, and the International Women's Federation of Commerce and Industry Malaysia,' Adilah was quoted as saying. 'They are really the ones to have networks within the community and society, enabling us to make this opportunity as widely accessible as possible,' she added. Addressing environmental concerns, Adilah said Microsoft is exploring ways to make its data centre operations more sustainable. 'We were part of the consultations with the digital ministry's guidelines for sustainable data centres. 'We also work with authorities to ensure that our water and energy usage metrics are aligned,' she was quoted as saying.
Malay Mail
3 hours ago
- Malay Mail
Port Klang charges to rise 30pc from July 2025, FMM says move risks cargo diversion and threatens jobs
KUCHING, June 15 — The Federation of Malaysian Manufacturers (FMM) has strongly objected to the upcoming port tariff hike at Port Klang, approved by the Ministry of Transport and gazetted on June 13, citing serious concerns over its timing and economic impact. The revised tariff structure involves a 30 per cent increase in container handling charges, to be implemented in three phases, beginning July 1, 2025, said FMM president Tan Sri Dato' Soh Thian Lai in a statement yesterday. He added that in addition to the handling charge hike, container storage charges are set to surge between 197 and 243 per cent, posing a significant burden on manufacturers already facing cost pressures from global and domestic headwinds. 'This comes at a time when industries are already contending with unresolved external shocks, including the ongoing US tariff threats on Malaysian exports, the expansion of the Sales and Service Tax (SST), and a scheduled restructuring of electricity tariffs. 'The convergence of these cost pressures will deliver a heavy blow to manufacturers and exporters at a critical juncture in Malaysia's economic recovery, further eroding the country's export competitiveness,' he said. Soh stressed that the sharp cost escalation from July could disrupt the cost structures of both exporters and importers at a critical point in Malaysia's economic recovery. Under the gazetted rates by the Port Klang Authority, container handling charges for a 20-foot container will rise from RM300 to RM390 over three phases. With Port Klang handling around 12.5 million TEUs annually, this could translate into an additional RM1.125 billion in annual costs to industry upon full implementation. 'Malaysian ports have traditionally enjoyed a competitive edge due to reasonable cost structures. 'However, with the new rates, container handling fees will approach US$120–130 per TEU, similar to rates in Singapore and Hong Kong, but well above Asean neighbours such as Vietnam, Indonesia and Thailand. 'This will erode Malaysia's value proposition and increase the risk of cargo diversion to competing regional ports,' he said. Soh also pointed to Malaysia's recent drop to 34th in the IMD World Competitiveness Ranking and its position at 26th in the World Bank's Logistics Performance Index as warning signs. He cautioned that the tariff hike sends the wrong message to investors and could undermine business planning and trade flow, especially as manufacturers grapple with narrowing margins and uncertain global conditions. Given the cascading effects of multiple policy shifts, Soh called for a holistic review by the government, urging inter-ministerial coordination on cost-related measures affecting businesses and consumers. 'Port tariffs, SST expansion, electricity hikes and international trade headwinds must be evaluated together. 'No single ministry or agency can make isolated decisions without assessing the full burden being placed on industry,' he said. He urged the government to immediately pause the implementation of the port tariff hike, electricity base tariff revision, and expanded SST scope, and to reconvene with industry stakeholders to reassess the broader economic and operational impact. 'These cost increases will eventually translate into higher prices for consumers, and a slowdown in manufacturing investment and job creation. 'FMM stands ready to work with the government to realign policy implementation timelines, ensure transparency in cost justifications, and develop a coordinated national strategy to support industry growth and protect the welfare of consumers,' he said. — The Borneo Post
