Ad Banner
Advertisement by Open Privilege
Malaysia

Malaysian firms eye Uganda’s oil fields amid shrinking domestic reserves

Image Credits: UnsplashImage Credits: Unsplash
  • Malaysian firms are exploring oil opportunities in Uganda as domestic reserves decline, with production expected to start by 2025.
  • Malaysia’s oil and gas sector contributes 20% to GDP, but reserves may deplete by 2038, pushing companies like Petronas to seek overseas investments.
  • Challenges include infrastructure gaps and ESG concerns, as Uganda’s oil projects face scrutiny over environmental and social impacts.

[MALAYSIA] Malaysian companies have been invited to compete for unexplored petroleum fields in Uganda, as the Southeast Asian nation’s oil and gas sector faces the challenge of rapidly depleting resources.

Uganda's oil industry has garnered significant attention in recent years due to substantial discoveries in the Albertine Graben region, which is estimated to contain more than 6.5 billion barrels of crude oil. With production set to begin by 2025, the East African country is positioning itself as a prominent player in the global energy market. For Malaysian firms, this represents a strategic opportunity to secure long-term reserves as domestic output continues to decline.

The oil and gas sector plays a vital role in Malaysia's economy, contributing approximately 20 percent of the nation’s 1.9 trillion ringgit (US$432 billion) gross domestic product.

Experts highlight that Petronas, Malaysia’s state-owned energy giant, has been proactively diversifying its portfolio by investing in international projects spanning Africa to South America. Expanding into Uganda fits well with this strategy, allowing Malaysian companies to leverage their expertise in deepwater and onshore exploration while reducing the risks associated with over-reliance on domestic reserves.

However, the government has cautioned that Malaysia's oil reserves could be depleted by 2038, with production from the country’s peninsular oilfields having already dropped to 350,000 barrels per day last year—half of what it was a decade ago.

The decline in output has sparked calls for a greater focus on renewable energy investment, yet hydrocarbons continue to serve as a critical economic driver in the short term. Uganda's untapped oil fields offer a promising alternative, although challenges such as infrastructure limitations and regional geopolitical risks may present obstacles for foreign investors.

Furthermore, environmental concerns related to Uganda’s oil projects, including the controversial East African Crude Oil Pipeline, have attracted criticism from activists. Malaysian firms entering the Ugandan market will likely face the need to navigate strict environmental, social, and governance (ESG) standards to meet global sustainability expectations while pursuing profitable opportunities.


Ad Banner
Advertisement by Open Privilege

Read More

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 1:30:00 PM

Pope Leo XIV holds first Mass

[WORLD] Pope Leo XIV, formerly Cardinal Robert Francis Prevost, celebrated his inaugural Mass as the 267th leader of the Roman Catholic Church today,...

Finance Europe
Image Credits: Unsplash
FinanceMay 9, 2025 at 10:30:00 AM

Bank Negara signals policy shift

[MALAYSIA]

Finance Europe
Image Credits: Open Privilege
FinanceMay 9, 2025 at 10:00:00 AM

Ringgit rises on trade optimism amid US dollar strength

[MALAYSIA] The ringgit opened stronger against the US dollar today, buoyed by improved market sentiment stemming from recent developments in global trade tariffs...

Politics Europe
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

Hong Kong must become aware of the perils of US port and maritime concerns

[WORLD] As U.S. President Donald Trump escalates tariffs on Chinese imports, concerns of a deepening trade war cast a shadow over the global...

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 8:00:00 AM

Oil prices jump on trade hopes and supply concerns

[WORLD] Oil prices surged roughly 3% on Thursday, driven by renewed optimism surrounding upcoming trade negotiations between the United States and China—both top...

Finance Europe
Image Credits: Unsplash
FinanceMay 9, 2025 at 7:30:00 AM

Wall Street gains as the first trade agreement is signed

[UNITED STATES] U.S. stocks advanced on Thursday, buoyed by investor optimism over a newly announced trade agreement between the United States and the...

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 7:30:00 AM

US-UK trade deal sets new tariff baseline

[EUROPE] The United States and the United Kingdom have reached a new trade agreement that establishes a 10% tariff on UK imports as...

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 7:30:00 AM

US UK trade pact sets new global tariff standard

[EUROPE] The United States and the United Kingdom have finalized a new trade agreement that underscores a significant shift in global trade policy,...

Politics Europe
Image Credits: Unsplash
PoliticsMay 9, 2025 at 7:00:00 AM

Trump urges 30-day ceasefire in Russia-Ukraine conflict

[EUROPE] U.S. President Donald Trump has called for a 30-day ceasefire between Russia and Ukraine, aiming to create space for negotiations on a...

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 6:00:00 AM

Stocks rally on trade hopes

[WORLD] U.S. stock markets experienced a significant rally on Thursday after President Donald Trump unveiled a "full and comprehensive" trade agreement with the...

Economy Europe
Image Credits: Unsplash
EconomyMay 9, 2025 at 6:00:00 AM

Why China is refusing to back down in the face of Trump's tariffs

[WORLD] Forecasting any nation’s foreign policy behavior is inherently difficult. The task becomes even more complex when dealing with a country like China,...

Culture Europe
Image Credits: Unsplash
CultureMay 8, 2025 at 5:00:00 PM

Why you might hate your job and what’s behind it

[UNITED STATES] In recent years, a growing number of workers are expressing dissatisfaction with their jobs, but what if this sense of burnout,...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege