Petronas Charts Ambitious Path: Doubling Down on Oil, Gas and Green Tech Through 2028
KUALA LUMPUR – In a bold move that underscores its dual role as an economic engine and an energy transition player, Malaysia’s Petroliam Nasional Bhd (Petronas) has detailed a comprehensive activity blueprint for 2026-2028. The strategy reaffirms the national oil company's commitment to securing Malaysia’s energy supply while methodically building its decarbonization portfolio.
Released in its latest Activity Outlook, the plan signals sustained investment across upstream exploration, liquefied natural gas (LNG) infrastructure, and nascent carbon capture and storage (CCS) projects. The aim is to maintain national production near 2 million barrels of oil equivalent per day, even as the company eyes future revenue from storing carbon dioxide.
“The upstream segment remains the lifeblood of our operations and national revenue,” a company executive noted on background. The plan calls for intensified exploration in both frontier and mature basins, including the Belud, Kurma Manis, and Sepat clusters. Recent discoveries like the Lebah Emas-1 well near the aging Duyong field have renewed confidence in Malaysia’s offshore potential. The company is also pushing enhanced oil recovery techniques and deepwater projects to counter natural production declines.
Notably, Petronas is weaving its 2050 net-zero ambition directly into project designs. A key pillar is establishing Malaysia as a regional CCS hub, transforming carbon abatement from a cost center into a commercial opportunity. This aligns with growing interest across Southeast Asia in storage-based decarbonization solutions.
On the gas front, Petronas is betting big on LNG as a transition fuel. Domestically, it will optimize the massive Bintulu LNG complex and deploy a third floating LNG unit. Internationally, growth projects in Canada and Suriname are advancing, while supply diversification continues through imports. “Gas is the critical bridge,” the outlook states, linking energy security to power generation and Malaysia’s booming digital economy.
The downstream and maritime segments aren't left out. Refining and petrochemical operations will focus on reliability amid market volatility, while a biorefinery project slated for 2028 aims to produce sustainable aviation fuel. The shipping arm targets a 50% cut in greenhouse gas intensity by 2030 through alternative fuels and green technology.
Analysts see the plan as a calculated balancing act. “Unlike some European majors retreating from fossil fuels, Petronas is reinforcing its core—but with a green tint,” said Dr. Aisha Lim, an energy economist at the Institute of Strategic and International Studies Malaysia. “It’s a pragmatic approach for a national company whose dividends fund state budgets.”
Industry veteran Rajiv Menon, a former offshore project manager, offered a more tempered view: “The ambition is clear, but execution is key. Deepwater and CCS are capital-intensive and technologically challenging. They’ll need partners and patient capital.”
Meanwhile, climate activist Zara Tan was sharply critical: “This isn't a transition plan; it's a fossil fuel expansion plan with a CCS fig leaf. Doubling down on LNG and oil exploration until 2028 locks in emissions for decades, making a mockery of their 2050 net-zero pledge.”
For service companies and investors, the outlook promises steady offshore activity in Southeast Asia, ongoing LNG infrastructure contracts, and early-stage CCS opportunities that could shape the region’s energy landscape well into the next decade.
Reporting by Charles Kennedy; additional context and analysis by the editorial team.