On January 21, ConocoPhillips Malaysia marked a significant milestone by assuming the operatorship of the Kebabangan Cluster Production Sharing Contract (KBBC PSC) fields. This historic event not only extends the PSC's duration to 2050 but also integrates KBB into ConocoPhillips' legacy operations worldwide, making it the Malaysia business unit's (MBU) first operated producing asset.

Malaysia has long been recognized for the high quality of its crude oil and natural gas. Its strategic location positions the country as a major player in the global energy market. The MBU, situated in the heart of Southeast Asia, is ideally placed to efficiently manage and cater to the demand centers across Asia.  

For two decades, the MBU has operated as a partner-operated asset. While this remains central to its business, taking on the operatorship of KBBC diversifies its portfolio and strengthens its footprint in the region. 

As a key investment asset for ConocoPhillips Malaysia, KBBC holds strategic importance in the company's long-term vision. The business unit aims to explore and unlock constrained resources in Sabah while identifying further commercial opportunities. With the continuation of the PSC and the new Upstream Gas Sales Agreement to support gas supply, KBBC is central to strengthening Sabah's energy needs.

“Our goal is to create a legacy business that is sustainable, resilient and reliable, despite the often-volatile nature of global energy markets," said ConocoPhillips Malaysia President Lisa Bruner. "We aim to contribute to the state’s vision of securing its energy needs and serving customers in the broader market.” 

The MBU's 20-year journey is a testament to the solid partnerships built on trust and strong collaboration with key stakeholders, including PETRONAS, through Malaysia Petroleum Management (MPM) that have been the foundation of its success. A significant milestone was reached in 2014 when, as part of the joint venture, the MBU achieved gas production startup at KBBC, marking the partnership's first major success. 

To maximize its opportunities to unlock resources, ConocoPhillips Malaysia signed the Discovered Resource Opportunities Ubah Clusters PSC under the Malaysia Bid Round 2024 with PETRONAS and existing KBBC PSC partners. This collaboration model is one that ConocoPhillips Malaysia looks forward to expanding as the operator of KBBC. The agreement provides the opportunity to assess the resource potential of five discovered fields as development tiebacks to the existing KBBC facility. These additional upstream resources will offer more options to keep the KBBC Hub full, supporting a future liquified natural gas plant and meeting the growing domestic demand.

“It’s a demonstration of our commitment to grow our presence in the country by leveraging our role as the KBBC operator to support PETRONAS and the Sabah State’s gas strategy aspirations,” said Growth and WL4-00 Manager Ian Lim.

ConocoPhillips Malaysia's unwavering commitment to exploration activities is evident in its recent acquisition of seismic data around the KBBC asset. This new data will enable the business unit to evaluate near-field exploration potential. Throughout 2025, the subsurface team will advance the characterization of the Sabah Basin to assess its resource potential, with the goal of discovering new upstream resources to support its ambition of building a legacy business in Malaysia.

"It all starts with the best rocks," said Exploration and Partner-Operated Assets Manager Vinit Rajani. "The new data and subsurface characterization will lay the foundation to look for the best rocks in Sabah." 

ConocoPhillips Malaysia's integration of KBBC into its organization marks the initial step in the significant growth it envisions in Malaysia. This strategic move lays the groundwork for future expansion and underscores the company's commitment to strengthening its presence in the region. 

“We are charting a new path that will lead to growth as we move into building a legacy position," Bruner said. "We are very excited to see how our business unit and people will transform to meet new challenges as an operator in the country."

KBB Asset Manager Ian Ramshaw emphasized the importance of collaboration for success.

“Achieving success will require continued strong partnerships with our key support functions," he said, "including Global Technical Functions and harnessing the strength of our staff in the combined workforces."

KBB Transition Manager Chris Isenberger said the business unit has welcomed some 300 new staff into the organization. “These talented new members of our team bring with them a strong reputation," he said. “They share our values around a commitment to safety, people, purpose, responsible operations and communities." 

Bruner praised Malaysia's work environment, emphasizing the inclusive atmosphere at ConocoPhillips that unites people from diverse backgrounds and fosters collaboration at the heart of its operations. 

“Watching our organization in Malaysia flourish is something I am immensely proud of," Bruner said. "Our long-term vision for Malaysia is to build a legacy asset. Building and maintaining our business and community relationships will be crucial, as is understanding the local market and culture. We will continue to prioritize our connections with stakeholders, understanding that relationships and trust are the foundations of successful partnerships. We see great opportunity in KBBC and in Malaysia."