Malaysia’s upstream oil and gas sector demonstrated resilience in the first quarter of 2025, with crude oil and condensate production maintaining a stable volume of 45.5 million barrels. Despite a marginal year-on-year contraction of 5.2 percent, the sector showed signs of recovery compared to the previous quarter, according to the latest report from the Department of Statistics Malaysia (DOSM).
The 45.5 million barrels of crude oil and condensate produced in Q1 2025 marked a slight decrease from the 45.7 million barrels recorded in Q4 2024. However, the contraction in crude oil production specifically narrowed to 6.5 percent from 9.3 percent in the preceding quarter, indicating an improving trend. Condensate production also saw a smaller negative growth at 2.4 percent, compared to 2.5 percent in Q4 2024.
Conversely, natural gas production saw a larger contraction, shrinking by 2.2 percent year-on-year to 781.9 billion cubic feet, down from 792.8 billion cubic feet in the fourth quarter of 2024.
Rising Prices Offset Production Dips:
The Weighted Average Lifting Price (WALP) for Malaysia’s crude oil and condensate experienced a slight increase, rising to USD76.4 per barrel in Q1 2025, up from USD76.3 per barrel in the previous quarter. This price movement was in line with international benchmarks, as West Texas Intermediate (WTI) rose to USD71.8 per barrel (from USD70.7) and Brent crude reached USD75.8 per barrel (from USD74.6).
Trade Dynamics: Exports and Imports Overview:
In terms of trade, the export value of crude petroleum and condensate saw a modest increase to RM6.2 billion, up from RM6.0 billion in Q4 2024. Thailand emerged as the leading export destination, accounting for 30.9 percent (RM1.9 billion) of total crude petroleum and condensate exports, followed by Australia (26.1%) and Japan (11.4%).
However, the export value of refined petroleum products declined to RM24.3 billion this quarter, down from RM26.5 billion previously. Singapore remained the largest recipient, importing RM6.9 billion or 28.3 percent, followed by Indonesia (21.4%) and Australia (15.5%). Similarly, Liquefied Natural Gas (LNG) exports decreased to RM15.5 billion from RM16.7 billion in Q4 2024, with Japan being the primary market (46.0%), followed by the Republic of Korea (24.3%) and China (20.1%).
On the import side, crude petroleum and condensate imports fell to RM13.6 billion in Q1 2025 from RM15.1 billion in Q4 2024. Saudi Arabia continued to be the dominant source, supplying 52.7 percent of imports, with the United Arab Emirates (15.2%) and Sudan (6.0%) also being significant contributors. Imports of refined petroleum products also saw a decline to RM23.2 billion (from RM25.4 billion), with Singapore being the largest source (42.5%), followed by the Republic of Korea (11.9%) and India (8.1%). LNG imports dropped to RM1.9 billion (from RM2.2 billion), with Australia being the sole source for this quarter.
