KUCHING: Petra Energy Bhd
has resumed oil production activities at the Banang oilfield located offshore Terengganu, after a 15-month suspension starting in January 2025 due to the mandatory dry docking of the mobile offshore production unit (MOPU) Petra Orion project.
Group chief executive officer Datuk Anthony @ Firdauz Bujang shared in the company’s 2025 annual report that oil production activities resumed in April. The scope of the MOPU’s drydocking include wellhead support structure (WSS) reinforcement, well suspension, MOPU detachment, and jack-down, enabling safe transition of the facilities following the temporary pause in production.
“A rapid deployment anchor-wire reinforcement system was implemented to temporarily qualify the WSS as a freestanding structure.
“This underscores the company’s strength in delivering adaptive engineering solutions for complex, constrained environment enabling safe operational continuity while optimising costs.
“The reinforcement system enabled the safe jack-down of MOPU Petra Orion in May 2025, allowing the unit to be detached and subsequently towed to the Malaysia Marine and Heavy Engineering shipyard in Pasir Gudang, with safe arrival in June for scheduled drydocking works.
“To ensure the WSS continued to operate safely as a freestanding structure during the maintenance period, solar-powered real-time well monitoring systems and navigation lights were installed. These measures support operational safety, while aligning with the group’s sustainability initiatives,” he said.
To recap, wholly-owned subsidiary Petra Energy Development Sdn Bhd (PEDSB) was awarded the Banang Late Life Asset (LLA) Production Sharing Contract (PSC) by Petroliam Nasional Bhd (PETRONAS), through Malaysia Petroleum Management, in June 2024.
The award grants PEDSB operatorship of the Banang oilfield with 100% participating interest effective June 1, 2024. The 10-year LLA PSC provides PEDSB the right to develop and produce petroleum resources.
PEDSB first commenced work at the Banang oilfield in 2012 under a successful risk sharing contract arrangement as a partner in Coastal Energy KBM Sdn Bhd for the Kapal, Banang and Meranti cluster. This later transitioned to a technical service agreement in June 2020 with the company operating the Banang oilfield on behalf of PETRONAS.
PEDSB’s total Banang production in 2024 (including the pre-LLA period) was 493,523 barrels. The production from April 1 to 23, 2026 was 31,199 barrels.
Anthony said the restart of production marks a steady return to production and reaffirming the company’s ability to restore operations safely and efficiently in line with its operational plans.
Besides the Banang oilfield, the company operates the Adong Kechil West Petroleum Contract Block SK433, onshore Miri.
PEDSB and Uzma Bhd were awarded the onshore petroleum contract for the exploration, development and production by state-owned Petroleum Sarawak Bhd in July 2021. The first onshore drilling at the SK433 block commenced in October 2023.
Updating the development progress for the SK433 project, Anthony said the build, own and operate contract was awarded in June 2025, marking the commencement of detailed project execution planning and collaboration.
This was followed by the award of fabrication works for key production facility components in November, and works are progressing in line with the project schedule.
“Following the award of a civil infrastructure contract, a kick-off meeting was held on Aug 13, 2025 to establish the framework for site development works, construction, sequencing, and coordination protocols,” he added.
PEDSB received approval from the Department of Environment for the project’s environmental management plan last October.
Anthony said the project progressed into the early construction phase of production facilities last November with the commencement of site clearing and civil works, marking a significant transition from planning and regulatory approvals into on-ground project implementation.
“The company continues to strengthen its upstream technical, operational and subsurface capabilities to support efficient field development, production optimisation, and asset lifecycle management.
“As a core pillar of Petra Energy’s long-term growth strategy, the upstream segment drives portfolio expansion through operatorship and strategic participation in mature and late-life assets, while extending into operations and maintenance to deliver sustainable long-term value.
“The integrated positioning reinforces Petra Energy’s ability to deliver safe, efficient and reliable operations, while extending the economic life of matured fields in a disciplined and sustainable manner.”
Besides the upstream segment, Anthony said the services segment remains the cornerstone of the company’s business, with its long-standing expertise in brownfield engineering, hook-up and commissioning, maintenance, construction and modification, and integrated project delivery.
He said the company would continue to assess its marine fleet capabilities, focusing on rationalising assets where appropriate, including potential disposals and targeted renewals.
“Proceeds from any divestments are intended to enhance financial flexibility and support the gradual renewal of the fleet with more efficient and environmentally aligned vessels,” he said.
It owns four accommodation workboats, two accommodation work barges and one anchor handling tug supply vessel for the provision of marine vessels to the oil and gas industry, a core business for the firm.
