KUALA LUMPUR: Analysts have foreseen Malaysia’s oil production to remain under pressure in the second half of 2025, continuing the soft decline seen in the first quarter, where crude oil and condensate production dropped 5.2 per cent year on year to 45.5 million barrels, reported Xinhua.
RHB Investment Bank said in a note on Monday that this decline is moderating compared to previous quarters, indicating some stabilisation due to improved field performance and operational efficiencies, especially in mature fields.
According to the research house, natural gas production may also contract slightly in the second half, primarily due to planned maintenance shutdowns of key facilities in Sarawak and West Malaysia, as well as moderating demand from major liquefied natural gas (LNG) importers like Japan and South Korea.
Meanwhile, MIDF Research also said in a recent note that the Malaysian upstream outlook is stable but cautious, as committed investments could be offset by global oil price volatility, supply chain disruptions, and the broader energy transition agenda. Cost discipline and efficiency also remain paramount. - Bernama
