Sabah Petroleum 2026 — Oil & Gas Exports, Gas Supply & Royalties

How big is oil and gas in Sabah?

Mining and quarrying, which in Sabah is mostly offshore oil and gas, was 22.0% of the state's GDP in 2025, the second-largest sector after services. It grew 4.9% in 2025 after shrinking 4.9% in 2024, according to DOSM, on higher crude and gas output.

In trade, the mining sector accounted for RM23.2 billion, 40.2% of Sabah's exports in 2025. Crude petroleum alone was RM17.1 billion (29.7%), down from RM21.3 billion in 2024; LNG was RM4.6 billion, up 2.0%.

How much oil and gas does Sabah produce?

Oil: Malaysia does not publish current crude production by state, and we have not found an official recent figure, so we do not give one.

Gas: the state energy plan put Sabah's gas output at about 8% of Malaysia's in 2018 and 986 MMscfd in 2019, of which 45% was committed to export, 37% to petrochemicals, 16% to power and 2% to other industry. In September 2026 Chief Minister Hajiji Noor said Sabah's gas supply was about 700 MMscfd and was expected to reach 1,350 MMscfd by 2030 through seven offshore projects. See Sabah's gas and the LNG plans.

The 2019 figure is production; the 2026 figures are described as supply. Treat them as different measures.

How much gas is left?

As of 2019, Sabah had over 11.67 trillion standard cubic feet (Tscf) of natural gas reserves, about 15% of Malaysia's, according to SE-RAMP 2040. Of 6.8 Tscf identified off the West Coast for 2020–2040, 4.2 Tscf is committed to existing power and petrochemical users and 2.6 Tscf is available for new industries and power plants. We have not found an official published figure for Sabah's oil reserves.

What does Sabah earn from oil and gas?

• Cash payment: 5% of the value of petroleum produced in the state, paid by PETRONAS; the federal government receives another 5%. Sabah's 2026 budget expects RM1.075 billion in petroleum royalties.
• Since 1976: the Prime Minister's Office said in July 2024 that Sabah had received about RM23 billion in petroleum cash payments, and the federal government about the same.
• State sales tax: Sabah has charged a sales tax on petroleum products since 2020 (5%, according to the Finance Ministry), collecting RM7.36 billion to March 2025.

The 5% cash payment is separate from the 40% special grant under Article 112D, which is based on federal revenue collected in Sabah and is before the Court of Appeal; see Sabah's 40% case explained. For the argument that Sabah should seek a share of PETRONAS itself, see a share of Petronas?

What is built at SOGIP in Sipitang?

SAMUR: PETRONAS Chemicals' ammonia-urea plant, with capacity of about 1.2 million tonnes a year of urea and 740,000 tonnes of ammonia. Borneo Post reported it 98% complete in July 2016, at a project cost of US$1.9 billion. See SOGIP and SAMUR.

ZLNG (PFLNG 3): a 2 million-tonne-a-year nearshore floating LNG facility, expected to start in the second half of 2027. Sabah took a 25% stake through its company SMJ Energy in 2025; Sabah Media reported the investment at about USD3.1 billion. Status as of September 2026: in August 2026 the Chief Minister said Sabah had also reached agreement with PETRONAS for a 40% stake in a floating LNG project in the state, with signing expected within months. The reports did not name the facility (his July 2025 statement had mentioned plans for a 40% stake in PFLNG 1, a separate facility), and we have not found a report that it has been signed.

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