Project Overview

The Floating Production, Storage & Offloading (FPSO) Limbayong, developed by Petronas, is located offshore Sabah in East Malaysia. It is an oil and non-associated gas development designed to unlock deepwater resources in the Sabah Basin and is regarded as PETRONAS’ first independently operated deepwater project. 

The Limbayong field will be developed via 10 deepwater production wells tied back to the FPSO. It will use a cylindrical FPSO supplied by Petronas subsidiary MISC. PETRONAS Carigali awarded TechnipFMC the subsea production system and SURF EPCIC scope in June 2021, while a further iEPCI award was announced in September 2026 for the project’s integrated subsea execution.

Petronas confirmed on 28 August 2026 that Limbayong had secured Final Investment Decision (FID) approval, moving the long-planned project into its execution phase. While the operator has confirmed the FPSO-based, 10-well configuration, it has not publicly disclosed the project’s FPSO capacity, recoverable reserves, or the total development cost.

FPSO Limbayong Location

The FPSO for the Limbayong project will be deployed at the Limbayong deepwater field, located approximately 120 km offshore Sabah in East Malaysia, within the Sabah Basin. The field lies in ultra-deep water with depths ranging from 900 to 1,200 metres and is developed across Blocks G and J. 

Project Background

Limbayong's origins trace to Shell's 2002 discovery of gas at the Limbayong-1 well, drilled in partnership with ConocoPhillips and Petronas. Over the following two decades, operatorship consolidated to Petronas Carigali, which now holds 100 percent working interest in the field.

The Limbayong Gas Holding Area, spanning Blocks G and J, was formally established in 2009 to consolidate the discovered gas resource, and the field's oil potential was subsequently confirmed by the November 2013 Limbayong-2 appraisal well, which encountered a substantial 136-metre oil-bearing sand interval. 

Petronas' initial development concept, formalised through the November 2018 tender launch, followed a conventional leased-FPSO model. The company would charter a purpose-built or converted FPSO from a domestic Malaysian contractor for a firm 12-year period, while Petronas itself would develop the subsea infrastructure and wells.

Four domestic contractors: Sabah International Petroleum, Yinson Holdings, MISC, and a Bumi Armada-MTC-Shapoorji Pallonji consortium, submitted bids under this framework, reflecting Malaysia's local content policy, which effectively excluded international FPSO specialists such as Modec and SBM Offshore from direct competition for the charter. 

Despite this competitive field, Petronas abruptly cancelled the tender around September or October 2021. This pattern of rapid cancel-and-relaunch demonstrated Petronas' continued commitment to the project. By the time of a subsequent retender round, only a single bid was received, a striking outcome for a deepwater project of Limbayong's scale.

In June 2021, Petronas awarded the subsea EPCIC contract for the project to TechnipFMC's Malaysian subsidiary, FMC Wellhead Equipment. This kept the project's technical groundwork alive even as the FPSO commercial structure remained unresolved for years.

FPSO Limbayong Current Status

Petronas confirmed on August 28, 2026, that it has finally taken the Final Investment Decision on Limbayong, nearly seven years after first tendering the project's FPSO in November 2018, and after at least one abrupt tender cancellation and a subsequent retender. 

On 15 September 2026, TechnipFMC's FMC Wellhead Equipment secured a fresh, 'significant' (USD 75-250 million range) integrated subsea EPCI contract for Limbayong, using the company's Subsea 2.0® configure-to-order platform.

This new contract, awarded immediately following FID confirmation, indicates that Petronas is moving quickly to execute the project after its long delay, with the award to be recognised in TechnipFMC's third-quarter 2026 inbound orders. 

Stakeholder Details

FPSO Limbayong Cost Details

The total estimated cost for the FPSO Limbayong is not disclosed officially. However, the new Limbayong subsea iEPCI contract awarded in 2026 is officially classified by TechnipFMC as a “significant” contract valued between USD 75 million and USD 250 million. 

Project Timeline

Design & Engineering Details

Conclusion

The Limbayong deepwater project marks a major milestone for Malaysia’s oil and gas industry. Located about 120 km offshore Sabah in ultra‑deep water of 900–1,200 meters, the project will be built via a subsea tie‑back of 10 wells to a central FPSO to monetise oil and associated gas in the Sabah Basin. The project aims to unlock deepwater resources and establish a foundation for a broader Sabah deepwater hub. 

The subsea scope, including wellheads, trees, manifolds, and integrated EPCI, has been awarded to TechnipFMC under a contract valued at USD 75–250 million. These moves reduce execution risk and position Limbayong as a technically robust, contractor‑backed development. 

With FID taken in 2026 and major contracts now in place, Limbayong is transitioning from concept to execution, with subsea engineering and FPSO integration activities advancing toward first oil. 

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