Malaysia’s petroleum sector recorded a strong rebound in the third quarter of 2025 with both crude oil & condensate and natural gas production posting robust growth after several quarters of decline.
According to the Department of Statistics Malaysia (DOSM), output strengthened as upstream activities picked up and global energy demand remained stable.
DOSM’s latest Mining of Petroleum and Natural Gas Statistics, Q3 2025 report revealed that crude oil & condensate output rose by 7.9 per cent, while natural gas production surged by 11.8 per cent during the quarter.
Crude oil and condensate production reached 45.1 million barrels, marking a turnaround after several quarters of decline. Crude oil alone expanded by 7.0%, reversing the -2.2% contraction registered in Q2 2025. Condensate output grew even faster at 9.7%, also recovering from three consecutive quarters of negative growth.
Natural gas production climbed to 737.0 billion cubic feet, up from 640.9 billion cubic feet recorded in the previous quarter. The 11.8% jump comes after two quarters of contraction, underscoring stronger upstream activity and improved operational performance.
The Weighted Average Lifting Price (WALP) for crude oil and condensate increased to USD71.9 per barrel in Q3 2025, compared to USD70.4 in Q2. The rise mirrored global benchmarks, with WTI increasing to USD65.7 per barrel and Brent strengthening to USD69.0 per barrel.
Exports Driven by Regional Demand
Malaysia’s export performance in the petroleum segment also improved:
- Crude petroleum & condensate exports reached RM5.3 billion, led by
Thailand – RM1.8 billion (34.6%)
Australia – 21.5%
Japan – 20.9%
- Refined petroleum products exports increased to RM23.8 billion, up from RM22.7 billion in Q2 2025.
Singapore remained the largest destination at RM5.5 billion (23.0%), followed by:
Indonesia – 22.2%
Australia – 13.9%
- LNG exports surged to RM12.2 billion, compared to RM10.3 billion in Q2.
Key export destinations were:
Japan – 37.7%
China – 29.6%
Republic of Korea – 25.6%
Imports Also Increase, Led by Crude Petroleum
Malaysia’s petroleum imports expanded alongside the rise in domestic activity:
- Crude petroleum & condensate imports climbed to RM16.0 billion (Q2: RM12.9 billion).
Top import sources were:
United Arab Emirates – 26.5%
Saudi Arabia – 22.2%
Oman – 18.4%
- Refined petroleum products imports rose to RM24.1 billion, with Singapore contributing the largest share at 39.5%, followed by China (14.2%) and South Korea (9.0%).
- LNG imports amounted to RM1.3 billion, down from RM1.5 billion in Q2, with Australia remaining the sole source for this quarter.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
