Malaysia

Petronas invests RM25 billion in Sarawak, eyes energy security and growth

State Deputy Premier highlights major hydrocarbon discoveries and infrastructure developments; state considers pilot gold mining project in Bau

Updated 1 year ago · Published on 28 May 2025 3:44PM

Petronas invests RM25 billion in Sarawak, eyes energy security and growth
Petronas is intensifying frontier exploration through data enrichment and strategic partnerships for seismic processing, reinforcing Sarawak's role in Malaysia's energy sector - May 28, 2025

PETROLIAM Nasional Bhd (Petronas) invested RM25 billion in Sarawak in 2024, according to Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

Speaking during the winding-up session at the Sarawak State Legislative Assembly, Awang Tengah, who also serves as the Minister for International Trade, Industry and Investment, said the investments include nine first hydrocarbon discoveries and two major production milestones: the Kasawari field in Block SK316 and the Jerun field in Block SK408.

"Ongoing offshore development and exploration projects are in progress to ensure future energy security," he said.

"Petronas is intensifying frontier exploration through data enrichment and strategic partnerships for seismic processing, reinforcing Sarawak's role in Malaysia's energy sector, supporting long-term energy security and economic growth."

Awang Tengah said the Sarawak government recognises natural gas as a key transition fuel in the global move towards net-zero emissions and is committed to its responsible development.

He added that the Sarawak Gas Roadmap aims to harness the state's extensive natural gas reserves—over 60 per cent of Malaysia’s total—to drive industrialisation, strengthen energy security, and attract sustainable investment.

"As part of this initiative, a RM100 million city gas trunkline in Bintulu will expand clean and affordable energy access for homes and businesses. The project is going to be implemented soon.

"Meanwhile, the RM1 billion Samalaju Pipeline will transport 300 million standard cubic feet (mmscf) per day of gas from Bintulu to Samalaju Industrial Park. The installation of this gas pipeline is expected to be completed by the end of 2025," he said.

Gold mining potential in Bau under review

Turning to the mining sector, Awang Tengah, who is also the Second Minister for Natural Resources and Urban Development, announced that the Sarawak government is evaluating the feasibility of gold mining in Bau, near Kuching, following the discovery of new deposits.

A proposed pilot project will cover an area of approximately 5,281 hectares under the Sarawak Mineral and Quarrying Industry Development Policy.

“As an effort to strengthen the mining and quarrying industry, the Sarawak government is currently formulating a more comprehensive policy that focuses on high-tech and sustainable mining methods to reduce environmental impacts.

“This pilot project is important to determine the feasibility of the project as well as the control and mitigation of the project’s impact before commercial mining is considered,” he said.

He noted that a digital system known as the Sarawak Minerals Information System (SMIS) is also proposed for development under the 13th Malaysia Plan to enhance the management of mineral and rock resources in the state.

Addressing human capital needs, Awang Tengah said around 1,400 new jobs have been identified across various levels within the upstream mining and quarrying industry.

“The Sarawak government through the Centre for Technology Excellence Sarawak (CENTEXS) will continue to provide Technical and Vocational Education and Training (TVET) to school or university graduates to fill the workforce needs.

“In addition, the Sarawak government is also working to establish a collaboration with the University of British Columbia (UBC), Canada for research and development purposes and mining technology, and also to produce professional workforce in this industry,” he said. - May 28, 2025

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