Malaysia’s PETRONAS partners on offshore oil recovery innovation

PETRONAS, through Malaysia Petroleum Management (MPM), has signed a Memorandum of Understanding (MoU) with regional Exploration and Production (E&P) operators and University Technology PETRONAS (UTP) to jointly evaluate opportunities for improved and enhanced oil recovery (IOR/EOR) in offshore acreages.

The document exchange, held in conjunction with the Offshore Technology Conference Asia (OTCA) 2026 at the Kuala Lumpur Convention Centre, was signed between PETRONAS, PETRONAS Carigali Sdn. Bhd. (PETRONAS Carigali), Universiti Teknologi PETRONAS (UTP), PTTEP Sarawak Oil Limited (PTTEP SKO), PTTEP Sabah Oil Limited (PTTEP SBO), and PT Pertamina Malaysia Eksplorasi Produksi (PMEP).

PETRONAS, via Malaysia Petroleum Management, has signed an MoU with PTTEP, Pertamina Malaysia and Universiti Teknologi PETRONAS to jointly evaluate improved and enhanced oil recovery opportunities in offshore assets.
The collaboration aims to extend field life and increase recovery rates.
PETRONAS also launched the AI-enabled Malaysia Digital Intelligence Centre to streamline upstream operations.

This collaboration represents a strategic, cross-border partnership among regional E&P operators and a leading academic institution, underscoring a shared aspiration to enhancing recovery factors, extending field life and unlocking long-term value from offshore assets.

Under the MoU, the parties will leverage the collective operating experience and technical expertise of PETRONAS Carigali, PTTEP SKO, PTTEP SBO and PMEP, alongside UTP’s specialised research capabilities and laboratory facilities. The collaboration will focus on developing fit-for-purpose IOR/EOR studies, supported by laboratory testing, with the potential to mature selected technologies and concepts towards pilot implementation.

“This collaboration brings together the operating experience and research excellence of the parties to accelerate opportunities in IOR/EOR solutions. By integrating subsurface insights, high-performance computing and operators’ capabilities, we aim to accelerate the maturation of fit-for-purpose solutions, unlock additional value from mature fields and strengthen long-term energy resilience through cross-border collaboration,” said Datuk Ir. Bacho Pilong, Senior Vice President, Malaysia Petroleum Management (MPM), PETRONAS.

Through this collaboration, the signatories aim to accelerate the deployment of innovative and practical recovery solutions, strengthen regional technical capabilities and contribute to sustainable resource development across offshore basins.

In parallel, PETRONAS through MPM unveiled the Digital Intelligence Centre (MDIC), marking a key milestone in its journey to becoming an organisation anchored on digital innovation and intelligence. The launch reinforces MPM’s role as Malaysia’s upstream resource custodian and demonstrates its commitment to global collaboration and artificial intelligence (AI) driven innovation.

MDIC serves as a unified digital platform connecting MPM and Petroleum Arrangement Contractors (PACs) consolidating workflows, data and intelligence into a single environment. This streamlines processes, enhances transparency and enables faster, more informed decision-making across the petroleum management lifecycle.

For the industry, MDIC provides a digital gateway for engagement with MPM, delivering greater transparency through access to consolidated and up-to-date information, faster and efficient interactions via streamlined submissions and approvals on a single platform, and improved decision-making through structured, reliable insights that support better planning, optimisation and execution.

“This signifies a fundamental shift from navigating multiple systems and touchpoints to one unified AI-enabled platform. Our aim is to institutionalise a data-driven way of working, where decisions are powered by intelligence insights that are fast, trusted, and embedded into daily operations. Ultimately, MDIC simplifies how PACs engage with MPM, allowing them to focus on what truly matters: high-value, high-impact work.” said Datuk Ir. Bacho Pilong.

The launch of MDIC underscores MPM’s commitment to institutionalising a data-driven culture, advancing digital innovation and strengthening Malaysia’s upstream ecosystem.

Note: The headline, insights, and image of this press release may have been refined by the ALCHEMPro staff; the rest of the content remains unchanged.

ALCHEMPro News Desk (JP)