PETRONAS CCS Ventures Sdn Bhd (PCCSV), a wholly owned subsidiary of PETRONAS, has been granted an Offshore Assessment Permit for Carbon Capture and Storage (CCS) in the Duyong area by the Malaysia Carbon Capture, Utilization, and Storage (MyCCUS) Agency.

The permit, issued on 10 October 2025, marks the first approval under Malaysia’s newly enacted Carbon Capture, Utilization, and Storage Act [Act 870] (CCUS Act 2025), which came into effect on 1 October 2025. The milestone underscores the country’s commitment to developing a robust CCS ecosystem as part of its energy transition strategy.

Exclusive Rights to Study

The Offshore Assessment Permit grants PCCSV exclusive rights to conduct comprehensive offshore geological and technical assessments in the Duyong field, located offshore Peninsular Malaysia. The evaluations will determine the field’s suitability as a CO2 storage site and form a crucial part of the Southern CCS offshore hub development. This development builds on the Key Principles Agreement (KPA) signed in July 2025 between PCCSV, TotalEnergies, and Mitsui & Co., Ltd. (MITSUI).

The partnership focuses on advancing research and evaluations to unlock the Duyong area’s potential as a secure, commercially viable carbon storage site, which is part of the Southern CCS offshore hub development.

Advancing Toward a Safe and Viable CCS Hub

PCCSV CEO Emry Hisham Yusoff described the granting of the permit as a “critical milestone” for the Duyong CCS project. “This permit allows our collaboration with TotalEnergies and MITSUI to move into the next phase of technical studies and evaluations, bringing us closer to realizing Duyong’s potential as a safe and commercially viable carbon dioxide (CO2) storage site,” he said.

He added that the initiative underscores PETRONAS’ commitment to reducing emissions and delivering innovative decarbonization solutions for its partners and customers.

Compliance and Technical Rigor

All assessment activities will be carried out in full alignment with the CCUS Act 2025 and the Offshore Permit and Licensing Regulations 2025. These frameworks ensure that every stage of exploration and assessment follows strict national laws and technical guidelines to validate the site’s commercial feasibility for long-term CO2 storage.

Laying the Foundation

Through the KPA, PCCSV, TotalEnergies, and MITSUI are laying the groundwork for the Front-End Engineering Design (FEED) phase for Duyong. This partnership is expected to shape one of the first integrated CCS solutions of its kind in the Asia Pacific region, providing an end-to-end model for capturing, transporting, and storing CO2 from multiple industries.

The effort builds on earlier collaborations established under the 2023 CCS Development Agreement, demonstrating a long-term agreement signed by PETRONAS, TotalEnergies, and MITSUI, reflecting a structured approach to CCS development.

Positioning Malaysia as a Regional CCS Leader

The issuance of this first Offshore Assessment Permit is a pivotal step in building Malaysia’s carbon capture and storage industry. It strengthens the nation’s role as a regional leader in cross-border CO2 management and reflects its growing influence in the global energy transition.

For PETRONAS, this milestone reaffirms its leadership in lower-carbon technologies and its goal of achieving Net Zero by 2050. Through PCCSV, PETRONAS continues to drive forward CCS as a key decarbonization pathway, supporting both national ambitions and global climate goals.

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