Malaysia

PETROS begins first oil production as Sarawak pushes to expand role in Malaysia’s energy sector

Sarawak Premier hails the milestone as a historic step towards greater Sarawak control over its petroleum resources and a catalyst for downstream industrial growth

Updated 1 month ago · Published on 23 Jul 2026 8:15AM

PETROS begins first oil production as Sarawak pushes to expand role in Malaysia’s energy sector
State-owned Petroliam Nasional Sarawak Berhad (PETROS) has achieved its first oil production, pumping 800 barrels per day from an onshore well near Marudi - July 23, 2026

PETROLIAM Nasional Sarawak Berhad (PETROS) has commenced its first oil production, marking a landmark achievement in Sarawak's drive to strengthen its stewardship of the state's oil and gas resources and accelerate the development of a value-added energy economy.

Sarawak Premier Tan Sri Abang Johari Abang Openg announced that PETROS began producing 800 barrels of oil per day from an onshore well near Marudi earlier this week, describing the achievement as a special Hari Sarawak gift to the people of the state.

"I wish to announce, as a gift to the people of Sarawak, that PETROS, our own state-owned oil and gas company,earlier this week commenced its first oil production, producing 800 barrels per day from a well near Marudi," he said during the Hari Sarawak Assembly at Dataran Tun Tuanku Bujang in Sibu on Wednesday, attended by Sarawak Governor Tun Dr Wan Junaidi Tuanku Jaafar.

Deputy Prime Minister Datuk Seri Fadillah Yusof was also present.

Abang Johari said the inaugural production, equivalent to approximately 24,000 barrels a month, marked the return of onshore oil production in Sarawak after more than five decades and underscored the state's growing engineering expertise and technical capability in developing and managing its own energy resources.

He said the milestone would further strengthen Sarawak's ambitions to expand its downstream petroleum industry, particularly in ammonia and blue hydrogen production, which are expected to become key pillars of the state's future economy.

"This is a tremendous gift to Sarawak in conjunction with this year's Hari Sarawak celebration. PETROS has also informed me that this is only the first well, with several more wells to be developed.

"This means Sarawak will play a much greater role in Malaysia's oil and gas industry," he said.

The Premier said the achievement reflected Sarawak's broader strategy of retaining more value from its natural resources by processing them within the state instead of exporting them as raw materials.

He said the previous practice of exporting unprocessed resources had resulted in much of the value creation, employment opportunities and technological development benefiting regions outside Sarawak.

"Today, we want every resource owned by Sarawak to be processed, developed and given added value within the state so that this wealth creates more industries, high-skilled jobs and business opportunities for our people.

"This is the economic philosophy underpinning the development policies of the Gabungan Parti Sarawak (GPS) government.

"It is no longer merely a plan on paper. It is now being translated into tangible success, with Sarawakians themselves directly involved in exploring and managing the state's natural resources," he said.Abang Johari said PETROS' successful transition into oil production demonstrated that Sarawak's long-term resource management policies were beginning to deliver tangible results while opening a new chapter for the state's energy industry.

Looking ahead, he said Sarawak's development strategy extended beyond state prosperity and was designed to position Malaysia competitively in an era shaped by clean energy, artificial intelligence, digital technologies and high-value industries.

He said Sarawak aimed to lead that transition by establishing itself as Malaysia's gateway to the green economy, a regional clean energy hub and a centre for high-value industrial investment. - July 23, 2026

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