United States oil major ConocoPhillips has announced its intention to expand its footprint in Malaysia by targeting new investment opportunities in Sabah, underlining its continued confidence in the country’s energy sector.
Chief Executive Officer Ryan Lance confirmed that discussions are underway with national oil company Petroliam Nasional Bhd (Petronas), with a focus on strengthening collaboration through future ventures in the East Malaysian state.
“We are going to invest in Sabah going forward, and we are exploring many opportunities with Petronas,” Lance stated following his participation in the “Gas and Liquefied Natural Gas (LNG): Investing for the Long Term” leadership dialogue, held during Energy Asia 2025 in Kuala Lumpur.
The session also featured Petronas Gas and Maritime Executive Vice President and CEO Datuk Adif Zulkifli, and was moderated by Dr Atul Arya, Senior Vice President and Chief Energy Strategist at S&P Global.
ConocoPhillips’ renewed interest in Sabah comes in the wake of its recent exit from the Salam-Patawali deepwater oil and gas field (Block WL4-00) off the coast of Sarawak. The project, discovered in 2018 as part of a 50:50 joint venture with Petronas, had an estimated value of RM13.7 billion (US$3.13 billion). The company stated that the move was part of a broader “country strategy review”, without providing further details.
Despite the divestment, ConocoPhillips maintains a significant presence in Malaysia through five production sharing contracts (PSCs), four of which are situated in Sabah’s offshore blocks: Block G, Block J, the Kebabangan Cluster, and the recently acquired Ubah Cluster in 2024.
During the dialogue, Lance reinforced the company’s optimism regarding the long-term viability of the LNG sector. He highlighted an evolving landscape in LNG contracting, pointing to the coexistence of short- and long-term agreements.
“Generally, customers want flexibility, shorter-term contracts with some destination flexibility. But it remains to be seen whether the developer, purchaser, or seller of the LNG will offer that kind of flexibility,” he said. “That kind of optionality will be key to accessing arbitrage opportunities across global importing regions.”
On the issue of pricing, Lance downplayed concerns that it could hinder market entry in Asia. “There will be ups and downs, as there always are in this business, but overall the outlook remains positive over the long term,” he said, affirming ConocoPhillips’ constructive stance on LNG price trends.
-Bernama
