On the occasion of Earth Day, RimbaWatch, in collaboration with the Center for Energy, Ecology and Development (CEED), raises an urgent alarm over planned oil and gas exploration activities under Malaysia’s recently announced 2026 Bid Round.
The Malaysia Bid Round is an annual bid exercise organised by the country to offer exploration and production blocks in the upstream petroleum sector.
The 2026 exercise, launched in February 2026, is offering Block SB304, an oil and gas exploration block located off the coast of Sandakan. It is believed that SB304 overlaps with globally significant marine protected areas in the Sulu-Sulawesi marine ecoregion.
The proposed exploration block covers 100% of the Sugud Islands marine conservation area and Turtle Island Park in Malaysia and directly borders the Turtle Islands wildlife sanctuary in the Philippines.
These areas are internationally recognised for their exceptional biodiversity and are critical habitats for endangered species, including green and hawksbill sea turtles, coral reefs, sharks and seagrass ecosystems.
Notably, maps of SB304 indicate that prospective “leads” are located directly within the borders of the marine protected areas. For example, the ‘Kumbang’ lead is located directly in the Sugud Islands conservation area, while ‘Lead F’ is located directly in the Turtle Island Park.
Oil and gas exploration and production in these waters pose severe environmental risks. Seismic surveys can disrupt marine mammals and fish, while drilling and production activities increase the likelihood of oil spills, seabed damage and long-term water contamination.
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The risks are especially acute for the Turtle Islands wildlife sanctuary, the only major nesting site of green sea turtles in Asean. Even minor oil spills could contaminate nesting beaches, reduce hatchling survival and lead to long-term population decline.
“These are not ordinary waters. They are among the most biodiverse marine ecosystems in the world and sustain coastal communities across borders,” the groups said. “Allowing fossil fuel extraction in these areas puts both nature and livelihoods at unacceptable risk.”
The proximity and possible overlap of exploration areas in Philippine waters raises serious concerns about transboundary environmental harm.
The Philippines and Malaysia have long cooperated to protect these ecosystems through the Turtle Islands heritage protected area, the world’s first transboundary marine protected area for marine turtles.
Any environmental damage from oil and gas operations could easily spread across national boundaries, undermining decades of bilateral conservation efforts.
“Oil spills do not respect borders. A single incident could have devastating consequences for both Malaysian and Philippine waters,” the groups emphasised.
The expansion of fossil fuel exploration under Block SB304 runs counter to global scientific consensus that no new oil and gas development is compatible with limiting global warming to 1.5C.
It also risks undermining Malaysia’s commitment to achieve net zero emissions by 2050, as continued fossil fuel expansion is projected to increase emissions rather than reduce them.
In addition, the groups noted that states have a legal obligation to prevent transboundary environmental harm. Approving projects that pose foreseeable cross-border risks may expose governments to potential violations of international law.
Calls to action
RimbaWatch and CEED call on:
- The government of Malaysia to halt the offering and awarding of Block SB304 and align energy policy with a 1.5C pathway
- Petronas to exclude marine protected areas from oil and gas activities and commit to ending exploration in the Coral Triangle
- The governments of Malaysia and the Philippines to strengthen cooperation by establishing cross-border buffer and exclusion zones for extractive industries
- Asean member states to uphold regional commitments to biodiversity protection and climate action
“This is a critical moment for Southeast Asia. The region must choose between expanding fossil fuels or protecting the ecosystems that sustain its people,” the groups said. “Protecting the Coral Triangle is not optional. It is essential for our shared future.” – RimbaWatch/CEED
The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.
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