Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman said Malaysia’s probable and proven reserves of petroleum, which is indicated as its 2P reserves, totalled 6.9 billion barrels of oil equivalent (boe), of which 4.2 billion boe are in Sarawak, followed by 1.3 billion boe in Sabah.
In a written reply to a question raised in Parliament, Azalina added that the 2P reserves have a more than 50% chance of being technically and economically possible to be produced.
“The country’s petroleum reserves could last 15 years based on the reserves life index calculation. This can be raised further to 40 years through high capital investments, utilisation of new technologies as well as a stable and competitive investment landscape,” she said.
The tally, based on Petroliam Nasional Bhd’s (Petronas) records as at Jan 1, 2022, means that Sarawak’s 2P reserves represent 60.87% of Malaysia’s total reserves, whereas Sabah’s portion makes up 18.84%.
Malaysia also produces oil and gas (O&G) in peninsular waters, making up the balance 1.4 billion boe (20.29%), back-of-the-envelope calculations showed.
“Petronas is always actively making efforts to attract more investors into upstream and downstream O&G in Malaysia. This effort is important in ensuring the continuity of high capital investments to spur the growth of [these sectors in the country],” Azalina added.
