ConocoPhillips has officially taken over the operatorship of the Kebabangan Cluster production sharing contract (KBBC PSC) in Sabah, Malaysia, marking a significant development in the country’s oil and gas sector. The transition, completed by Malaysia’s state-owned oil company Petronas, designates ConocoPhillips Sabah Gas, a subsidiary of the U.S. energy giant ConocoPhillips, as the sole operator of the KBBC PSC. This move is part of a strategic effort led by Malaysia Petroleum Management (MPM) to optimize future gas field developments while strengthening the region’s energy security.

Previously, the KBBC PSC, which encompasses a series of oil and gas fields off the coast of Sabah, was jointly operated by the Kebabangan Petroleum Operating Company, a collaboration between Petronas Carigali, Shell Energy Asia, and ConocoPhillips Sabah Gas. The transition to ConocoPhillips taking full control is seen as an important step towards ensuring the economic viability of the region’s gas resources. Sabah, long recognized for its rich energy potential, is poised to continue benefiting from strategic developments like this.

Datuk Seri Panglima Haji Hajiji, Chief Minister of Sabah, highlighted the growing appeal of the region as a top destination for oil and gas investment, crediting the ongoing initiatives by Petronas and its industry partners. He emphasized that these projects not only bolster the state’s economic growth but also generate opportunities for local communities. The collaboration between various industry players, including Petronas and ConocoPhillips, underscores the importance of enhancing Sabah's energy infrastructure to support long-term prosperity.

The Kebabangan Cluster itself boasts an impressive gas export capacity of up to 750 million standard cubic feet per day (mscf/d). With the extension of the PSC until 2050, the region's potential for gas production and field development is further cemented. Petronas and its collaborators have structured commercial agreements to ensure that future gas field developments within the cluster remain economically attractive and sustainable.

MPM senior vice-president Datuk Ir. Bacho expressed gratitude to the Sabah State Government for fostering an environment conducive to oil and gas investment. He also acknowledged the important role ConocoPhillips plays in Malaysia's upstream sector, emphasizing the company’s growing contribution to the country’s energy landscape. This transition reinforces the continued confidence in Malaysia’s energy sector and its ability to remain a competitive player in the global oil and gas industry.

This milestone comes shortly after Petronas made its final investment decision regarding the development of the Hidayah field in East Java, Indonesia, further solidifying its commitment to expanding its footprint in Southeast Asia’s energy sector.