KUALA LUMPUR (Oct 23): Total investments in the upstream segment of the oil and gas industry across Malaysia between 2018 and 2024 reached RM256 billion, with investments in Sarawak’s offshore fields making up the largest share.

During the period, a total of RM113.2 billion in upstream investments were conducted in the waters off Sarawak, followed with RM86.5 billion in the Peninsular Malaysia’s offshore fields and RM56.3 billion in Sabah’s.

This was revealed by the Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said in a written reply to questions by Mordi Bimol (PH-Mas Gading), who asked on Petronas’ exploration and annual production costs in each producing state between 2018 and 2024.

Citing data from Petronas, Azalina said that upstream investments stood at RM48.4 billion in 2024 alone, with investments in Sarawak’s fields making up the largest at RM23.8 billion, followed by Peninsular Malaysia at RM15.1 billion and Sabah at RM9.4 billion.

Meanwhile, total revenue from upstream oil and gas activities between 2018 and 2024 was RM775.2 billion, with the hydrocarbons produced off the waters of Sarawak contributing RM285.4 billion, followed by those derived from Peninsular Malaysia’s fields at RM284.8 billion and Sabah at RM205 billion.

In 2024, upstream oil and gas revenue in Malaysia came in at RM127 billion, down from RM130.2 billion in 2023 and RM147.9 billion in 2022.

Overall, the investment-to-revenue ratio during the 2018-2024 period stood at 33%, with Sarawak registering the highest ratio at 40%, followed by Peninsular Malaysia (30%) and Sabah (27%).

Upstream oil and gas investment refers to spending on exploration and production activities, including the search for new oil and gas reserves, drilling of wells and the development of production facilities.

It is noteworthy that Petronas has been at odds with Sarawak — which holds more than 40% of Malaysia’s gas reserves — over control of oil and gas resources in the state.

Earlier this month, Petronas and Sarawak-owned Petroleum Sarawak Bhd (Petros) returned to the High Court over a dispute involving gas supply payments.

This came despite the signing of a joint declaration between the federal government and Sarawak in May this year, intended to resolve long-standing issues between the national oil company and the state.

As of now, there has been little progress or public update on the terms and implementation mechanisms of the declaration.

In a separate reply to Wan Hassan Mohd Ramli (PN-Dungun), Azalina said Petronas’ net profit for the first half of 2025 fell nearly 19% due to weaker crude oil prices.

Petronas’ net profit stood at RM26 billion for the six months ended June 2025, compared with RM32 billion in the same period last year.

“The lower profit was mainly due to a significant drop in global crude oil prices, which averaged US$71.87 per barrel, compared with US$84.06 per barrel a year earlier,” she said.

Azalina added that Petronas’ financial performance was influenced by market factors, including oil prices and foreign exchange rates.

For more Parliament stories, click here.