KOTA KINABALU: ConocoPhillips Sabah Gas Ltd., operator of the Kebabangan (KBB) gas field off the cost of Sabah, offshore Malaysia, is pleased to announce that it has taken final investment decision (FID) on 21st May 2026 for Phase 2 of the KBB gas field development.
The decision underscores the company’s long-term commitment to Malaysia and continued investment in Sabah.
The total investment by the joint venture partners of approximately RM1.3 billion will support the drilling of additional wells to increase gas production, help meet growing demand and strengthen Sabah’s energy security.
Connor Dunn, President of ConocoPhillips Malaysia said “I am very pleased to see that in the little over a year as operator, reliability has improved and safety performance has strengthened. This is a testament to our team and the strong support of our partners.”
Commissioned in 2013, the KBB gas field is located approximately 123 km off the coast of Sabah, and the anchor supplier for LNG and domestic gas for the State of Sabah.
The KBB Cluster development is a joint venture between ConocoPhillips Sabah Gas Ltd. (30%, operator), PETRONAS Carigali Sdn. Bhd. (40%), and Shell Energy Asia Limited (30%).
KBB Phase 2 is part of ConocoPhillips’ broader growth strategy and underscores the company’s continued commitment to future investments in Malaysia.
ConocoPhillips also holds 35% equity interest in the Ubah Cluster as operator and non-operated equity ownership in the Malikai field (35%), the unitized Gumusut field (29.5%) and the unitized Siakap-North-Petai (SNP) field (21%).
“We thank PETRONAS, our partners, vendors and suppliers for their continued confidence and support. This investment also reflects our commitment to developing local capabilities, particularly among Sabah vendors,” said Dunn.
“In our first year of operatorship, we are proud to announce that three Malaysian companies ,including two from Sabah, were recognized through the 2026 ConocoPhillips Global Supplier Recognition Awards, underscoring the strength, competitiveness and growing global readiness of local suppliers in supporting safe, reliable and high-performing operations.”
This investment in KBB Phase 2 development will expand production capacity, support Sabah’s energy security and further strengthen local talent and supplier capabilities.-pr/BNN
