26/07/2026
In January 2013, Petronas and Japan's JX Nippon announced the discovery of oil and gas at Sarawak's Adong Kecil West-1, 20km northwest of Miri. It was a major milestone as Malaysia's first onshore discovery in 24 years, following the historic 1910 (pre-Malaysia) Miri Field and the 1989 Asam Paya find, both in Sarawak.
However, JX Nippon walked away from the project just two years later. The complex underground geology and lack of onshore logistical infrastructure made the site too unprofitable to develop, prompting them to refocus on offshore.
Today, after nearly 50 years of dormancy, Sarawak is reviving the sector, driven by strong political will, modern technology, and updated business strategies.
🛢Adong Kechil West and the revival of Sarawak’s onshore industry
In July 2026, PETROS and Petra Energy successfully operationalized the Adong Kechil West Early Production System (EPS), a modularized system designed to bring oil and gas production online rapidly, without the need for permanent infrastructure. By pumping roughly 800 barrels a day and shipping their first tanker, they successfully revived Sarawak's onshore oil industry.
Additionally, the natural gas extracted from the site will be used to power the new Miri Combined Cycle Gas Turbine (CCGT) power plant by 2027, effectively transforming a previously abandoned discovery into a key, long-term energy source for the state.
🛢Upland Resources and Block SK334
London Stock Exchange-listed Upland Resources, led by former Sarawak assemblyman Datuk Bolhassan Di, believes onshore Sarawak holds vast, largely unexplored oil potential matching nearby Brunei.
The company has made Block SK334 their principal activity, a 6,685 sq km area in Limbang and Lawas that shares Brunei's rich geological formations.
Following a successful Joint Technical Study with Big Oil Ventures Sdn Bhd, Upland is now advancing toward a Production Sharing Contract. Even though no wells have historically been drilled there, Block SK334 is considered highly promising.
🛢Future explorations and a very Sarawakian workforce
PETROS and the Japan Organization for Metals and Energy Security (JOGMEC) are partnering to explore the promising, largely explored Mukah-Balingian region. Overall, 124000 sq km of Sarawak’s onshore is said to be largely untapped.
Perhaps the biggest highlight of these projects is the strong involvement of local vendors and crews. It is said that 75% of the on-site crew at Adong Kechil West are Sarawakians, while Upland has committed to building a team of experienced local contractors for their upcoming operations.
An intriguing (re)start.
-The Kuchingite-
Source:
The Edge Malaysia: Petronas’ 3rd discovery in Sarawak.
The Star: Petros signs deals for oil exploration in Sarawak.
PetroleumSarawak: Petros launches Sarawak Bid Round 2024
Upland.Energy: SK334
Malay Mail: Petros begins first oil production in Sarawak with 800 barrels a day from Marudi well