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As Malaysia’s Sapura Energy tumbles, Petronas’ silence is telling

The country’s national oil giant had propelled Sapura Energy into the big league but is now watching on the sidelines as the once-sector darling falters

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Anita Gabriel

Anita Gabriel

Published Thu, Mar 27, 2025 · 05:00 AM
    • Could it be that Petronas' decision not to step in signals a shift and – in the best-case scenario – towards a new era of financial discipline and strategic detachment?
    • Could it be that Petronas' decision not to step in signals a shift and – in the best-case scenario – towards a new era of financial discipline and strategic detachment? PHOTO: REUTERS

    [SINGAPORE] In an industry where even giants have fallen from dizzying heights, Malaysia’s home-grown oil and gas titan is on the ropes.

    Once a flagship of the oil-rich nation’s ambition to build stalwarts in the upstream energy segment, Sapura Energy is teetering on the brink of collapse – buried under more than RM10 billion (S$3 billion) in debt and years of financial and strategic missteps, including a furious global expansion fuelled by debt.

    At its peak in 2014 – just before the global oil slump – Sapura Energy had an order book of over RM27 billion and a market value exceeding RM30 billion. It was ranked the world’s second-largest integrated oil and gas services provider, behind only Italy’s Saipem.

    PetronasMalaysiaOil and gas

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