5 takeaways as PETRONAS launches its 2026 licencing round

Malaysia Petroleum Management (MPM — the governing body that acts for and on behalf of Malaysian state-owned oil and gas firm PETRONAS) recently launched its 2026 bid round and confirmed several 2025 bid round winners. So, what do E&P firms need to know about these announcements? 

 1. New logos keep coming 

Notable among announced winners of the Malaysia Bid Round 2025 (MBR 2025) were two new entrants: Indonesian independent Medco Energi and UK North Sea player Bridge Petroleum. 

Medco chosen to give Cendor a second life: Alongside its partners, Malaysian technical service provider DIALOG and UK-based E&P firm EnQuest, Medco was awarded the Cendramas production sharing contract (PSC). The chart below shows Medco’s production portfolio by maturity.  

Formerly known as PM304, this oil-producing block off Peninsular Malaysia was due to be operated by British-based firm Petrofac until H2 2026; however, with Petrofac entering administration in October 2025, it has been re-awarded. The terms of the PSC have yet to be disclosed, but given Medco’s history of exploiting mature assets, MPM is likely to expect it to try both E&A and development drilling to give the Cendor field within the block a new lease of life. 

UK subsea specialist Bridge wins DRO: Private UK operator Bridge Petroleum, which positions itself as a subsea specialist, was awarded the 10 million barrels of oil equivalent (mmboe) Permata cluster discovered resource opportunity (DRO). Bridge plans to exploit the cluster, located off the coast of Sabah in the east of the country, by implementing subsea tie-backs to existing infrastructure nearby — most likely Erb West or Semarang. The firm’s next challenge will be funding and executing the marginal project and/or securing financing and joint venture partners. 

Bridge joins a growing roster of North Sea players that include the aforementioned EnQuest as well as Ping and Longboat (now Seascape) that have chosen to pivot towards the more investor friendly Malaysian market. With some blocks from the 2025 round still to be awarded and the 2026 licencing round already announced, we expect there will be more.   

Get more insight 

After a relatively quiet 2025 for licensing, MPM is offering 15 lots in 2026. Comprising nine exploration blocks and six DROs. Fill out the form at the top of the page to download the rest of this article, which explores the 2026 offerings in detail.