Cross‑border partnership sets its cap on offshore oil recovery boost

June 4, 2026, by Melisa Cavcic

Malaysia’s state-owned oil and gas heavyweight Petronas has joined forces with regional partners to jointly evaluate opportunities for improved and enhanced oil recovery (IOR/EOR) in offshore acreages.

Petronas, through Malaysia Petroleum Management (MPM), has signed a memorandum of understanding (MoU) with regional exploration and production (E&P) operators, encompassing Petronas Carigali, PTTEP Sarawak Oil (PTTEP SKO), PTTEP Sabah Oil (PTTEP SBO), and PT Pertamina Malaysia Eksplorasi Produksi (PMEP), alongside University Technology PETRONAS (UTP), to advance offshore oil recovery.

The partners will leverage the collective operating experience and technical expertise of Petronas Carigali, PTTEP SKO, PTTEP SBO, and PMEP, alongside UTP’s specialised research capabilities and laboratory facilities, focusing on developing fit‑for‑purpose IOR/EOR studies, supported by laboratory testing, with the potential to mature selected technologies and concepts towards pilot implementation.

The Malaysian player claims that this collaboration represents a strategic, cross‑border partnership among regional E&P operators and an academic institution, underscoring a shared aspiration to enhance recovery factors, extend field life, and unlock long‑term value from offshore assets.

Datuk Ir. Bacho Pilong, Senior Vice President of Malaysia Petroleum Management (MPM), commented: “This collaboration brings together the operating experience and research excellence of the parties to accelerate opportunities in IOR/EOR solutions.

“By integrating subsurface insights, high-performance computing and operators’ capabilities, we aim to accelerate the maturation of fit-for-purpose solutions, unlock additional value from mature fields and strengthen long-term energy resilience through cross-border collaboration.”

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The collaboration aims to enable the signatories to accelerate the deployment of innovative and practical recovery solutions, strengthen regional technical capabilities, and contribute to sustainable resource development across offshore basins.

Petronas, through MPM, also unveiled the Digital Intelligence Centre (MDIC), said to mark a key milestone in its journey to becoming an organization anchored in digital innovation and intelligence. The launch reinforces MPM’s role as Malaysia’s upstream resource custodian and demonstrates its commitment to global collaboration and artificial intelligence (AI) driven innovation.

MDIC serves as a unified digital platform connecting MPM and Petroleum Arrangement Contractors (PACs), consolidating workflows, data and intelligence into a single environment, streamlining processes, enhancing transparency and enabling faster, more informed decision-making across the petroleum management lifecycle.

Datuk Ir. Bacho Pilong added: “This signifies a fundamental shift from navigating multiple systems and touchpoints to one unified AI-enabled platform. Our aim is to institutionalise a data-driven way of working, where decisions are powered by intelligence insights that are fast, trusted, and embedded into daily operations.

“Ultimately, MDIC simplifies how PACs engage with MPM, allowing them to focus on what truly matters: high-value, high-impact work.”