SIBU – A significant milestone for Sarawak’s energy sector was announced on 22 July 2026, as the state-owned oil and gas company, Petroleum Sarawak Berhad (Petros), commenced its first commercial oil production.
The announcement was made by the Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari, during the 2026 Sarawak Day celebrations in Sibu.
The initial output is coming from the Adong Kechil West (AKW) field, located near Marudi. This development marks a historic shift, ending more than five decades without onshore oil production in the state.
It signifies a new era where Sarawakians take direct control of their strategic natural resources, moving beyond mere ownership to active exploration and management.
The Premier revealed that the single well currently in operation is producing approximately 800 barrels per day. This translates to roughly 24,000 barrels per month.
While modest in volume compared to major offshore fields, the achievement is symbolically powerful. It demonstrates Petros’ growing capability as an independent operator within the global energy landscape.
“That’s just production from one well,” the premier noted, hinting at the potential for further expansion as additional wells are brought online. He described this success as a direct result of the Sarawak government’s long-term policy framework, which prioritises state dominance over strategic resources.
This move aligns with the broader Post-COVID-19 Development Strategy 2030 (PCDS 2030). The strategy aims to transition Sarawak into a high-income economy driven by knowledge, innovation, and high-value industries.
The World Bank has already recognised Sarawak as a high-income region for four consecutive years, validating the effectiveness of these economic reforms.
The commencement of oil production is not viewed in isolation but as a catalyst for developing a comprehensive downstream value chain.
The government intends to leverage these resources to foster industries focused on ammonia, blue hydrogen, and other petrochemical products.
This approach represents a fundamental change in how natural resources are managed, shifting from the export of raw materials to the creation of added value within the state.
By developing downstream industries, the state aims to generate high-skilled job opportunities for its people. This focus on human capital development is central to the PCDS 2030 vision.
It ensures that the benefits of resource extraction are retained locally, contributing to sustainable economic growth and social prosperity.
The Premier also highlighted the role of the Sarawak Gas Roadmap (SGR) in strengthening the sector. The SGR outlines a comprehensive plan to develop the entire natural gas value chain. This includes expanding capabilities in methanol production, ammonia synthesis, and hydrogen technology.
These initiatives are designed to position Sarawak as a regional leader in the green economy and a hub for clean energy solutions.
Control over energy resources by Sarawakians is seen as crucial for maintaining the state’s autonomy and economic resilience.
By mastering the technical and operational aspects of the industry, Petros is building a foundation for long-term sustainability.
This self-reliance strengthens Sarawak’s position within the Federation of Malaysia, allowing it to contribute more significantly to national economic growth while securing its own future.
The announcement in Sibu, a key town in the Rajang region, added local significance to the event. It served as a reminder of the state’s diverse economic potential, extending beyond traditional strongholds.
The presence of the premier and other dignitaries underscored the political importance of this achievement, linking it directly to the themes of self-determination and progress celebrated on Sarawak Day.
As Petros moves forward, the focus will likely shift to scaling up production and integrating these new outputs into the broader industrial ecosystem.
The success at Adong Kechil West provides a proof of concept for future projects, encouraging further investment and innovation in the sector.
This development reinforces Sarawak’s ambition to become a major player in the global energy transition. By combining traditional oil and gas expertise with emerging green technologies, the state is crafting a unique economic model.
One that balances immediate revenue generation with long-term environmental and social goals, ensuring prosperity for generations to come.
