Over the last 12 years, Vestigo has successfully developed six greenfield projects, an achievement the company takes great pride in.
WE may not always realise it, but oil and gas power almost every aspect of our lives. They’re in the electrical components of our smartphones, the fuel that keeps us moving, and the jets that carry us across continents.
At home, they generate electricity, fire up our stoves, power cleaning products, and even form the materials used in life-saving medical gear and equipment.
But before any of that happens, it all begins deep underground within the complex, high-stakes world of the oil and gas industry.
Today, Malaysia continues to yield about 660,000 barrels of liquids and seven billion cubic feet of gas every day – cementing the nation’s position as one of South-East Asia’s largest petroleum producers and a key player in the region’s energy landscape.
And while new oil discoveries often steal the headlines, the real story lies in what happens after the spotlight fades – when fields grow older and trickier to manage.
These are the fields that still hold promise but are too complex, too costly, or too small for big players’ portfolios.
In 2013, PETRONAS Carigali Sdn Bhd, the principal upstream subsidiary of Petroliam Nasional Bhd (PETRONAS), recognised a growth opportunity within this segment. That foresight led to the establishment of Vestigo Petroleum Sdn Bhd.
“Our focus has been clear from the start: PETRONAS Carigali handles the full spectrum, from exploration to production, while Vestigo focuses specifically on the development and production of marginal and mature fields,” says Vestigo chief executive officer Khairul Azhar Abu Bakar.
As Khairul explains, Vestigo isn’t searching for the next massive oil discovery – the company has experts who breathe new life into smaller, ageing fields. Think of them as the master restorers of the energy sector, ensuring no viable national asset is left behind.
Khairul says Vestigo has evolved from a client–contractor model to a smart partnership, sharing risks and responsibilities with its partners, a testament to mutual trust and a shared goal of advancing Malaysia’s energy security. – AZLINA ABDULLAH/The Star
Reservoirs of opportunity
Between the 1940s and the 1970s, oil exploration was all about the big finds.
But by the late 1990s, as production from older fields slowed and new discoveries grew scarcer, the industry reached what experts called the “End of easy oil.”
The remaining oil became harder and more expensive to extract. Many fields passed their prime and were labelled “mature.”
Others – discovered but left untouched – were defined as “marginal,” seen as too small to be developed profitably.
With global energy demand expected to rise, tapping into these mature and marginal fields has become not just an opportunity, but a necessity.
Still, developing these reservoirs is far from easy, but this is precisely where Vestigo’s niche shines.
“Our mission is to unlock hydrocarbons that others cannot,” says Khairul, noting that this ethos drives every aspect of Vestigo’s operations.
The company’s model revolves around doing more with less – leaner operations, standardised designs, and smart use of existing infrastructure to make even small-scale projects profitable.
Instead of massive platforms, Vestigo deploys compact, cost-efficient ones that deliver results faster.
While a single small field may seem insignificant, the combined output of many such projects creates meaningful national value – turning overlooked assets into shared prosperity.
A big part of Vestigo’s success lies in its innovation and technology-driven approach.
“For us, technology is one of the key levers we always focus on, especially in the development phase.
“As you know, marginal fields are small, so cost discipline is absolutely critical,” Khairul shares, adding that it helps the company remain cost-competitive and efficient.
He recalls a project from 2020 involving a small gas field located 60km from the nearest infrastructure.
“Traditionally, building a pipeline that long would cost around US$100mil.
“But through the use of a technology called mechanical connectors instead of conventional welding, we managed to reduce the cost by 40%.”
Service providers also play a vital role in Vestigo’s process.
Typically, he explains, supply chains are only involved towards the end. But as Vestigo aims to ensure efficiency throughout the delivery of the field development plan, it brings in its supply chain teams as early as during the field development studies.
“This allows them to start thinking about what else can be done in terms of technology adoption and how to develop effective contracting strategies.”
Sustainability by design
The development of mature, small and marginal oil fields has taken on new significance amid the global energy transition. For Vestigo, sustainability isn’t an afterthought.
“Sustainability is absolutely critical to us. As a PETRONAS subsidiary, we align with the Group’s Net Zero Carbon Emissions (NZCE) 2050 aspiration,” Khairul emphasises.
He points out that over the past five years, Vestigo has embedded sustainability considerations into its facility designs from the very start of development.
“We’ve experimented with using solar and even wind turbines to power our platforms instead of relying solely on gas engines.
“That mindset is built into our process so that once we begin operations, emissions are already minimised.”
When it comes to mature fields, however, many come with legacy designs.
“These older facilities may have systems that allow flaring or venting, which are no longer aligned with current sustainability standards.
“When we take over such assets, our goal is to support PETRONAS’ net-zero ambitions by improving them,” he adds, noting that Vestigo reduces emissions not just through new technologies but also by enhancing basic operations.
Skills powering performance
Developing marginal and mature oil fields go beyond producing energy – it also fuels economic growth by creating jobs and nurturing homegrown talent in a rapidly evolving industry.
About 99% of Vestigo’s workforce is Malaysian, something the company takes immense pride in.
Despite being staffed by only 150 people, Khairul says the company’s strength lies in its agility and expertise.
Talent development remains a top priority for Vestigo, which invests heavily in continuous training – both technical and leadership-based – to foster a culture of learning, innovation and ownership.
“Ultimately, it’s about data-driven decision-making and empowering our people to act with confidence and accountability,” Khairul confides.
Better together
For Khairul, in the business of developing complex and challenging oil fields, collaboration always outweighs competition.
He believes strategic partnerships are key to tackling difficult assets, sharing risks and unlocking new opportunities
“We collaborate closely with PETRONAS and often replicate technologies they’ve already tested and proven.
“Leveraging such technologies helps us stay cost-efficient and safe.”
Over the past five years, he has seen more of this collaborative effort across the industry.
Previously, replication across the industry was slow and highly project specific.
However, Vestigo’s team readily adopts proven solutions implemented by other operators.
In turn, some of Vestigo’s own innovations have also been replicated by PETRONAS after recognising their benefits.
“It’s a win-win situation. That kind of collaboration keeps the entire ecosystem efficient,” he adds.
