KUALA LUMPUR, Oct 17 (Bernama) — In an increasingly challenging global energy landscape, Petronas Carigali Sdn Bhd (Petronas Carigali) is advancing with a focused strategy that prioritises high-value assets, ventures into high-risk frontier exploration areas, and leverages new technologies to sustain Malaysia’s long-term energy security.
Petronas Carigali chief executive officer Hazli Sham Kassim said the strategy is not merely about short-term profitability but forms part of a broader mission to strengthen the nation’s energy resilience while contributing to Petronas’ goal of achieving net-zero carbon emissions by 2050.
“Every company in the world, including us, operates with limited funds. The key is how we optimise that capital to generate the best possible returns. That is why we are implementing a portfolio high-grading strategy, identifying which assets we should continue to invest in, and which ones we should streamline,” he said when met recently.
Reassessing Assets, Pursuing High Value
Hazli Sham said Petronas Carigali’s asset strategy is guided by a principle of “doing more with less”, maximising returns from existing resources while ensuring every investment creates sustainable long-term value.
He explained that high-value assets are defined as those capable of achieving a unit production cost (UPC) of less than US$6 per barrel, with an operational breakeven oil price below US$50 per barrel, a benchmark that allows the company to remain resilient even during oil price volatility.
This approach forms part of PETRONAS Carigali’s broader portfolio high-grading exercise, in which mature or low-yielding assets are gradually optimised to free up capital for newer, more productive developments.
The focus, he said, is not only on short-term production growth but also on improving efficiency, lowering emissions, and embedding automation across operations.
“The newer the asset, the easier it is for us to automate operations. Many of these facilities can now be operated remotely, which not only helps reduce costs but also minimises safety risks,” he added.
He noted that newer assets are being designed with digital readiness in mind, enabling data-driven decision-making, predictive maintenance, and remote operations – capabilities that not only reduce downtime but also enhance safety and environmental performance.
Hazli Sham added that by streamlining its portfolio, Petronas Carigali can better allocate resources towards lower-carbon opportunities and projects with strong future potential, especially those aligned with Petronas’ sustainability goals.
Ultimately, he noted that Petronas Carigali’s aim is to optimise the entire value chain from exploration, development, production to decommissioning, in ensuring that every asset in their portfolio remains economically and environmentally viable.
Unlocking New Potential
Over the past few decades, Malaysia’s oil and gas exploration industry has evolved from small-scale operations into a high-technology sector that supports both domestic and regional energy value chains.
According to Hazli Sham, while Malaysia currently has eight petroleum basins, only three have been extensively developed. The other five are frontier basins with untapped potential. Among these are Langkasuka and Penyu off coast of Peninsular Malaysia.
He added that their potential could be unlocked through technology partnerships and risk-sharing with investors.
Hazli Sham said Malaysia’s petroleum geography is diverse, with each region contributing differently to the national energy mix.
“At present, in terms of total production, Sarawak is mainly gas. Sabah, I would say, is mostly oil, while Peninsular Malaysia is about 50-50 — a balance between oil and gas,” he explained.
Hazli Sham emphasised Petronas’ responsibility as a national oil company to take calculated risks in such areas to safeguard the country’s long-term energy supply.
“Many people think Malaysia is fully explored. In reality, there are still many frontier areas with strong potential. If successful, it will not only increase the nation’s reserves but also strengthen Malaysia’s position as a regional energy hub,” he said.
Major discoveries such as the Megah-1, located in Deepwater Block 3K, described as the largest in two decades, underscore how bold exploration and risk-taking can translate into major reserves for the nation.
Technology as an Efficiency Driver
Technology and innovation, Hazli Sham said, have become the backbone of Petronas Carigali’s transformation, enabling the company to operate smarter, faster, and safer in an increasingly complex energy environment.
Among its most significant breakthroughs is the Enhanced Resource Monetisation Artificial Intelligence (ERMAI) system, developed by Malaysian engineers.
The application continuously learns, adapts, and evolves, transforming how Petronas Carigali interprets and monetises subsurface data, allowing opportunities to be identified 1,000 times faster — from six days to just six seconds.
This speed, Hazli Sham said, represents more than just efficiency; it demonstrates how digitalisation can accelerate decision-making, reduce resource wastage, and optimise field recovery without costly downtime.
“ERMAI is not just an analytical tool, but a system that changes the way we manage our energy resources. It allows us to identify additional production potential much faster and more accurately,” he said.
In addition to data-driven tools, Petronas Carigali’s adoption of rig mechanised automation (RMA) has improved drilling consistency, safety, and precision.
These technologies, along with other technologies that Petronas Carigali has adopted, enable the company to reduce development time from the industry average of 100 months to just around 50 months, effectively doubling the project delivery speed.
“In the case of Bekok Shallow in Terengganu waters, we managed to bring a new well to the production phase in just 15 months — something that would have been almost impossible in the past,” Hazli Sham said.
He said the company is also exploring predictive analytics and digital twin applications to simulate production scenarios and optimise asset performance in real time.
By using automation and robotics at its facilities, Petronas Carigali has enhanced safety for on-site crews and reduced manual intervention.
Hazli Sham said the innovations have been recognised as catalysts that allow more to be achieved with fewer resources, a critical advantage in maintaining competitiveness, reducing emissions, and ensuring the long-term sustainability of operations.
— BERNAMA
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