.jpg)
Kota Kinabalu: Malaysia’s upstream oil and gas industry must focus on extracting greater value from exisiting assets through technology, operational discipline and closer industry collaboration as new discoveries become harder to develop economically, executives said at an energy conference recently.
Speakers at the opening panel of the recent Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2026 said extending the life of existing oil and gas fields, rather than relying solely on new discoveries, would be critical to maintaining production and competitiveness.
The discussion set the tone for SOGCE 2026, highlighting a broader industry shift toward maximising returns from existing infrastructure through digital technologies, operational efficiency and strategic partnerships rather than relying solely on new resource discoveries.
Operational excellence emerged as a recurring theme during the session, with representatives from Shell Malaysia Upstream, TotalEnergies EP Malaysia, Velesto Energy Berhad and Energy Dot Com outlining strategies to improve reliability, reduce costs and maximize production from mature assets.
Shell Malaysia Upstream’s Conrad Thomas said operators are increasingly prioritising brownfield developments to extend the life of existing assets, though executing projects on producing facilities requires meticulous planning to minismise operational disruptions and maintain safety.
He said successful brownfield execution depended on thorough planning, in-depth understanding of existing infrastructure and integrated logistics to minimize disruptions during limited shutdown windows.
As Malaysia’s producing fields mature, operators are also looking to recover more oil from existing reservoirs instead of developing new fields, according to Ts. Izwan Adnan of Energy Dot Com.
He said advances in lower-cost enhanced oil recovery techniques, including targeted well stimulation and reservoir modification, were making it more economical to extend production despite volatile oil prices.
Izwan added that Sabah’s portfolio of mature producing fields provides decades of operational data that could accelerate the use of artificial intelligence in reservoir management, production optimisation and asset maintenance.
TotalEnergies EP Malaysia’s Ismail Omar said sustaining production from mature fields requires continuous reinvestment in drilling, pressure maintenance and compression as reservoirs naturally decline over time.
However, he said existing production hubs also present new opportunities by allowing smaller nearby discoveries to be connected to existing infrastructure, reducing development costs and shortening project timelines.
Velesto Energy Berhad’s Shahrul Nizar said drilling contractors are increasingly being judged on their ability to consistently deliver safe and predictable operations rather than isolated project successes.
He said closer collaboration between operators, drilling contractors and service providers before drilling begins helps reduce operational risks and improve execution certainty.
He cited Velesto’s reported fleet uptime of about 99.9 per cent in 2025 as evidence of the role disciplined mantencance and technology play in improving reliability.
Despite representing different parts of the upstream value chain, panelists agreed that collaboration among regulators, operators, contractors and technology providers would be essential to sustaining Malaysia’s oil and gas industry as assets mature and cost pressures increase.
