SEC and PETRONAS Sign HoA for Mutiara Gas Project

10 February 2026

KUALA LUMPUR: Sabah Energy Corporation Sdn. Bhd. (SEC) today announced the exchange of a Heads of Agreement (HoA) with PETRONAS for the development of the Mutiara Cluster, a strategic offshore gas resource located off the coast of Sandakan.

The HoA was exchanged between SEC, represented by its Chief Executive Officer, Datuk Ir Ts Adzmir Abd Rahman, and PETRONAS, represented by Ziaril Faiz Zakaria, Senior General Manager of Integrated Hydrocarbon Management.

The exchange was witnessed by the Chief Minister of Sabah, Datuk Seri Panglima Hajiji Noor; the President and Group Chief Executive Officer of PETRONAS, Tan Sri Tengku Muhammad Taufik Tengku Aziz; the Sabah State Secretary, Datuk Seri Panglima Safar Untong; the Chairman of SEC, Datuk Annuar Ayub; and the Senior Vice President of Malaysia Petroleum Management (MPM), Datuk Bacho Pilong.

The HoA establishes a commercial and collaborative framework towards the execution of a future Gas Sales Agreement, supporting the development and monetisation of gas resources from the Mutiara Cluster to meet Sabah’s long-term energy requirements. With first gas targeted for early 2029, the Mutiara Cluster is expected to play a pivotal role in reshaping the state’s energy supply landscape.

Currently, natural gas supplied by SEC accounts for approximately 86 per cent of Sabah’s power generation, with supply largely concentrated on the West Coast. The East Coast, by contrast, has depended on small-scale liquefied natural gas (LNG) deliveries.

The development of the Mutiara Cluster is intended to address this imbalance by enabling a scalable and reliable industrial-scale gas supply to Sabah’s East Coast, thereby strengthening energy security and supporting economic activity and downstream industrial development in Sandakan and surrounding areas.

Beyond infrastructure development, the HoA reflects the shared commitment of SEC and PETRONAS to deepen collaboration in responsibly unlocking Sabah’s indigenous gas resources, while fostering a more balanced and resilient energy market across the state.

The Mutiara Cluster development is aligned with the State’s SMJ 2.0 development agenda and is expected to contribute to sustained investment, job creation, and long-term economic growth in Sabah.