US energy giant ConocoPhillips has officially taken over as the operator of the massive Kebabangan gas field, located offshore Sabah, East Malaysia. The transition marks a key step in securing the future of the field, with agreements in place to sustain operations until 2050.
Previously managed by the Kebabangan Petroleum Operating Company—a joint venture between Petronas Carigali (40%), Shell (30%), and ConocoPhillips (30%)—the Kebabangan field has an export capacity of up to 750 million cubic feet of gas per day. It holds an estimated 2.2 trillion cubic feet of gas reserves and began production in 2014, two decades after its discovery.
The transition of operatorship to ConocoPhillips Sabah Gas was formalized on 23 January, taking effect retroactively from 21 January. Petronas emphasized that the continuation of the Kebabangan production sharing contract (KBBC PSC) and other commercial agreements were structured to ensure economic viability, supporting energy security in Sabah for decades to come.
In a statement, Bacho Pilong, senior vice president of Malaysia Petroleum Management at Petronas, praised the collaborative effort: “We thank the Sabah state government for fostering an environment conducive to oil and gas investments. This reflects our commitment to business growth and enhanced energy security. We are also pleased to welcome ConocoPhillips’ expanded role in Malaysia’s upstream sector, reinforcing confidence in the country’s energy potential.”
Sabah’s Finance Minister, Masidi Manjun, who represented Chief Minister Hajiji Noor at the signing ceremony, highlighted the state’s growing appeal as a hub for oil and gas investments. “Sabah is rapidly emerging as a preferred destination for oil and gas investments, thanks to strategic partnerships with Petronas and its collaborators. These efforts underscore Sabah’s resource potential and our dedication to economic growth and creating opportunities for our people.”
The transfer marks another significant milestone in Sabah’s drive to become a key energy player in the region, paving the way for further exploration and development opportunities.
