Borneo Oil secures PETRONAS vendor licence


PETALING JAYA: Borneo Oil Bhd, via its indirect subsidiary, Borneo Oil (Sabah) Sdn Bhd (BOS) has obtained a licence from Petroliam Nasional Bhd (PETRONAS) as a Sabahan vendor.

In a filing with Bursa Malaysia, Borneo Oil said BOS is also expanding its operational base with the aim of providing a comprehensive list of services encompassing the entire oil and gas value chain, through strategic partnerships and collaborations with experienced oil and gas services and equipment providers.

Borneo Oil said, pursuant to this, BOS had signed a collaborative agreement with Intercontinental Strait Energy Technology Co Ltd (SETC) on March 20.

“The parties have agreed to collaborate jointly to bid for projects to provide consultancy, supervision and provision of services for drilling, completion, work over, stimulation, geology-related activities, real-time drilling monitoring and optimisation services and any other collaborative projects mutually agreed by the parties.”

Borneo Oil said SETC, based in Chengdu, China, is the largest drilling-management consultancy in China, specialising in drilling optimisation, completion, fracturing supervision, reservoir management, and geological consultancy.

“The company is dedicated to improving drilling efficiency, minimising time, and reducing costs through advanced optimisation techniques.”

Borneo Oil noted that Malaysia’s oil and gas production stands at approximately 660,000 barrels per day of liquids and seven billion standard cubic feet per day of gas.

“PETRONAS plans to increase production to two million barrels per day in order to cope with the increasing domestic demand for oil.

In December 2023, Malaysia domestically consumed approximately 929,556 barrels of oil per day.”

Borneo Oil said Sabah holds an estimated 11 trillion cubic feet of gas and 1.5 billion barrels of oil, making up 12% of the country’s gas reserves and 25% of its oil reserves.

“Sabah is currently Malaysia’s top crude oil producer and oil and gas services contribute 20% of Sabah’s gross domestic product.

“Deep water projects are expected to bolster Malaysia’s oil production over the next decade, securing Sabah’s position as the leading oil-producing state in the country,” the company said.

Established in 1984, Borneo Oil has interests in food and beverages, franchise operations, property investment and management, and mineral resources.

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