Malaysian oil production is forecast to face pressure in the second half of 2025, after recording a 5.2% year-on-year decline to 45.5 million barrels in the first quarter.
RHB Investment Bank said the decline moderated compared to the previous quarter, indicating signs of stabilisation as a result of improved performance and operational efficiency in mature fields.
The firm also said natural gas production is likely to decline in the second half of 2025, due to the closure of key facilities in Sarawak and the Peninsular and subdued demand from Japan and South Korea.
MIDF Research also discussed the outlook for Malaysia’s upstream sector as stable but remains cautious, amid global oil price volatility, supply disruptions and energy transition pressures.
