Petronas Signs Offshore Oil Recovery Collaboration Deal

Friday, June 5, 2026

Petronas, through Malaysia Petroleum Management (MPM), has signed a memorandum of understanding with regional exploration and production operators and Universiti Teknologi Petronas (UTP) to jointly evaluate opportunities for improved and enhanced oil recovery in offshore acreages.

The agreement was signed by Petronas, Petronas Carigali, UTP, PTTEP Sarawak Oil, PTTEP Sabah Oil and PT Pertamina Malaysia Eksplorasi Produksi.

The collaboration aims to evaluate opportunities to enhance recovery factors, extend field life and unlock additional value from offshore assets through improved oil recovery (IOR) and enhanced oil recovery (EOR) technologies.

Under the agreement, the parties will combine the operating experience and technical expertise of Petronas Carigali, PTTEP Sarawak Oil, PTTEP Sabah Oil Limited and PT Pertamina Malaysia Eksplorasi Produksi with UTP’s research capabilities and laboratory facilities.

The work will focus on developing fit-for-purpose IOR and EOR studies supported by laboratory testing, with selected technologies and concepts potentially progressing towards pilot implementation.

The signatories said the initiative is intended to accelerate the deployment of recovery solutions, strengthen regional technical capabilities and support sustainable resource development across offshore basins.

“This collaboration brings together the operating experience and research excellence of the parties to accelerate opportunities in IOR/EOR solutions. By integrating subsurface insights, high-performance computing and operators’ capabilities, we aim to accelerate the maturation of fit-for-purpose solutions, unlock additional value from mature fields and strengthen long-term energy resilience through cross-border collaboration,” said Bacho Pilong, Senior Vice President of Malaysia Petroleum Management at Petronas.

Separately, Petronas, through MPM, launched the Malaysia Digital Intelligence Centre (MDIC), a digital platform designed to connect MPM and Petroleum Arrangement Contractors through a unified environment for workflows, data and intelligence.

The company said the platform is intended to streamline processes, improve transparency and support faster decision-making across the petroleum management lifecycle.

“This signifies a fundamental shift from navigating multiple systems and touchpoints to one unified AI-enabled platform. Our aim is to institutionalized a data-driven way of working, where decisions are powered by intelligence insights that are fast, trusted, and embedded into daily operations. Ultimately, MDIC simplifies how PACs engage with MPM, allowing them to focus on what truly matters: high-value, high-impact work,” Bacho added.

Categories: Industry News Activity Asia Oil and Gas

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