LABUAN CRUDE OIL TERMINAL MARKS 50 YEARS AS MALAYSIA’S ENERGY GATEWAY -- HIBISCUS PETROLEUM CHAIRMAN

LABUAN, Nov 22 (Bernama) -- The Labuan Crude Oil Terminal (LCOT), one of Malaysia’s earliest and most enduring oil and gas installations, continues to stand as a symbol of national resilience and operational excellence as it celebrates its 50th anniversary, said Hibiscus Petroleum Bhd chairman Zainul Rahim.

He said LCOT, commissioned in 1975 when crude oil first arrived from the Samarang Field, has remained a vital link between Sabah’s offshore production and global crude markets for half a century.

“LCOT has been one of the nation’s earliest steps towards becoming a significant energy-producing country. 

“Despite evolving technologies, global shifts, and changes in operatorship, the terminal has remained resilient and reliable, a clear testimony of the dedication and professionalism of the people who operate it,” he said at the LCOT 50th Anniversary celebration here today.

Zainul said LCOT continues to play an essential role as the central storage and export facility for crude from the St Joseph, South Furious, SF30 and Barton fields under the North Sabah Production Sharing Contract (PSC).

“From the first export of some 221,000 barrels on the vessel MESSINIAKI MINDE, daily production has grown from about 3,600 barrels to peaks near 100,000 barrels per day, reflecting the growth of Malaysia’s oil and gas industry,” he said.

Zainul said Shell had operated LCOT for decades before Hibiscus Petroleum took over in 2018, marking a new chapter in Malaysian stewardship. Since then, the terminal has continued to operate safely and efficiently, exporting crude that commands a premium to Brent.

“At Hibiscus, we aim to operate better, safer, and smarter. LCOT reflects this commitment through continuous improvements in reliability, safety, and cost efficiency,” he said.

Among key initiatives introduced under Hibiscus’ operatorship are the installation of a new 16-inch effluent discharge line to enhance environmental compliance, strengthened security systems that earned LCOT the Chief Government Security Officer (CGSO) 5-Star Award for Key Point 1 compliance in 2022, and increased investments in asset integrity, digitalisation and predictive maintenance.

“These investments have improved operational efficiency, reduced risks and extended the life of LCOT,” he said.

Zainul also highlighted the terminal’s recent achievement as one of the recipients of the Prime Minister’s Hibiscus Award 2024/2025, recognising excellence in environmental sustainability.

He paid tribute to the LCOT workforce, past and present, for their discipline, professionalism and teamwork.

“Key to LCOT’s success is its people. Your commitment has kept LCOT safe and reliable for 50 years,” he said.

He extended gratitude to PETRONAS Carigali, the government, Labuan authorities, contractors and service partners for their long-standing collaboration and support.

Zainul said LCOT’s contribution to Labuan goes beyond operations, with Hibiscus investing in community programmes focused on health, education, inclusion and social well-being.

These include the Labuan Blood Donation Campaign, the SK Bebuluh STEM Programme, support for the Labuan Autism School and Pemulihan Dalam Komuniti under the Wakalah Programme, and the LCOT Canine Health Protection initiative.

“These efforts reflect our commitment to the UN Sustainable Development Goals and our responsibility to uplift both the community and the environment,” he said.

Looking ahead, he said Hibiscus Petroleum will continue investing in technology, talent and partnerships to ensure LCOT remains a model of operational excellence and sustainability.

“Fifty years of LCOT is a story of people, perseverance and purpose. As we celebrate this golden milestone, let us renew our commitment to operate responsibly, safely and efficiently, and grow sustainably,” he said.

--BERNAMA