SINGAPORE, Oct 27 2026: The first oil production from the Adong Kechil West field, Block SK433 in Miri has revived Sarawak's onshore oil production activities after almost 50 years, Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni said.
He said the production, which was started by Petroleum Sarawak Berhad (Petros) and PETRA Energy in July 2026, is now recording about 800 barrels of oil per day.
He said the development proves that Sarawak's efforts to strengthen energy security continue to bear fruit, especially in ensuring sufficient energy supply to support the state's industrial and economic growth.
“As our industry grows, so does the demand for energy.
“Therefore, we continue to strengthen our energy security by developing onshore and offshore oil and gas resources, as well as expanding hydro and solar generation,” he said while delivering a keynote address at the Singapore International Energy Week (SIEW) 2026 at the Sands Expo and Convention Centre, Singapore, today.
He said the momentum would continue through oil and gas exploration activities in several other areas including Balingian, Limbang, Marudi and Niah.
In a related development, he said, Petros is also exploring the integrated development of offshore gas fields in Sarawak’s western waters to create a more reliable source of gas supply for the Kuching Low-Carbon Hub.
According to him, the development of the gas infrastructure is important to support future power generation needs and industrial activities, especially in the southern region of Sarawak.
“This will help attract new industries and investments, create downstream opportunities and drive economic growth,” he said.
He said Kuching LNG Terminal, which Petros developed with Höegh Evi through a Joint Development Agreement, will be part of the Kuching Low-Carbon Hub and is Sarawak’s first LNG regasification facility.
Dr Hazland said the development of Tanjung Embang will be supported by LNG infrastructure, Kuching Deepsea Port and industrial parks to attract high-value industries including artificial intelligence (AI), semiconductors, food processing and smart machines.
At the same time, he said Samajaya 2 High Tech Park in Samarahan has been identified as the first development area to start the Kuching Low-Carbon Hub and is targeted to be ready to receive investors by early 2028.
He also said the 65-kilometre Samalaju-Bintulu Pipeline project is expected to be completed by the end of 2026 to supply natural gas to industries in Samalaju Industrial Park.
In strengthening the energy system, Sarawak, he said, has also increased its use of renewable energy when nine Solar Power Purchase Agreements have been signed, involving a total solar capacity of 1,450 megawatts.
Efforts to strengthen the electricity supply network have also continued through the Bunut-Medamit-Limbang grid which was completed last July and the Lawas transmission network, thus increasing energy supply in northern Sarawak.
Dr Hazland said the infrastructure is also an important foundation for the Sarawak-Sabah Interconnection, thus supporting efforts to realise the Borneo Grid and the ASEAN Power Grid initiative.
“Growth brings responsibility. Net Zero cannot be separated from economic development.
“It needs to shape the way we grow by using energy more efficiently, reducing emissions and getting higher value from the resources we have,” he said.
He added that the State Cabinet in June also approved the Sarawak Net Zero Strategy and Carbon Plan, while a study for the establishment of the Sarawak Climate Finance Accelerator is underway.
He explained that the move reflects Sarawak’s approach in balancing economic development, energy security and the sustainability agenda.
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