GEORGE TOWN: The government is exploring new crude oil sources from several regions to diversify the country's energy supply amid global geopolitical uncertainty, Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir says.
He said the effort requires technical evaluation because crude oil from different countries and producing regions has varying characteristics, and not all can be processed using Malaysia's existing facilities.
"Each crude oil supply from different regions has different characteristics, so an assessment must be made on whether our facilities can receive and process the supply.
"It is not simply about sourcing oil from everywhere, but ensuring that supplies from particular regions are compatible with the facilities we have," he told the media after opening the Northern Corridor Economic Region Technology and Innovation Centre (NCER) (NTIC) here on Wednesday (June 10).
He said countries currently being explored as potential new supply sources include Russia and Türkiye.
Akmal Nasrullah said the government has given assurance on oil supply until the end of July, while developments regarding supply guarantees for the subsequent period are expected to be known by the end of this month.
He said the government has chosen a transparent approach by sharing the level of supply availability after matters relating to sources, costs and supply agreements are finalised.
The guarantee until the end of July should not be interpreted as indicating a difficult situation after that because further supply guarantees will be announced once the next procurement agreements have been finalised, he said.
He added that the government does not want to be tied to overly long supply agreements while global oil prices remain volatile, as market changes could affect the country's costs. - Bernama
