Kuala Lumpur, 9 February 2026 – Sabah Energy Corporation Sdn. Bhd (SEC) is proud to announce the exchange of Heads of Agreement (HoA) with PETRONAS for the Mutiara Cluster, a strategic offshore gas resource located off the coast of Sandakan.
Representing SEC was Chief Executive Officer, Datuk Ir. Ts. Adzmir Abd Rahman, while PETRONAS was represented by and Ziaril Faiz Zakaria, Senior General Manager, Integrated Hydrocarbon Management, PETRONAS. The exchange was witnessed by YAB Datuk Seri Panglima Haji Hajiji bin Haji Noor, Chief Minister of Sabah; YBhg Tan Sri Tengku Muhammad Taufik Tengku Aziz, President and Group CEO of PETRONAS; YB Datuk Seri Panglima Safar Untong, Sabah State Secretary; YBhg Datuk Annuar Ayub, Chairman of SEC; and YBhg Datuk Bacho Pilong, Senior Vice President, Malaysia Petroleum Management (MPM).
The HoA establishes the commercial and collaborative framework towards a future Gas Sales Agreement, supporting the development and monetisation of gas resources from the Mutiara Cluster to meet Sabah’s long-term energy needs. With first gas targeted for early 2029, the Mutiara Cluster is expected to play a critical role in reshaping Sabah’s energy supply landscape. SEC’s natural gas currently fuels 86% of the state’s power needs, but that supply has been concentrated on the West Coast. The East Coast has relied on small-scale LNG deliveries.
The development of the Mutiara Cluster is intended to address this imbalance by enabling scalable and reliable gas supply to the East Coast at industrial scale, supporting energy security, economic activity, and downstream industrial development in Sandakan and surrounding areas. Beyond infrastructure, the HoA reflects a shared commitment by SEC and PETRONAS to strengthen collaboration in unlocking Sabah’s indigenous gas resources responsibly, while supporting a more balanced and resilient energy market across the State.
The Mutiara Cluster development is also aligned with the State’s’s SMJ 2.0 development agenda and is expected to contribute to sustained investment, job creation, and long-term economic growth.
