A subsidiary of multinational oil and gas firm Petronas has been granted an offshore assessment permit for carbon capture and storage (CCS) in the Duyong area of Malaysia.
The Malaysia Carbon Capture, Utilisation, and Storage (MyCCUS) Agency awarded the permit to Petronas CCS Ventures (PCCSV).
It is the first one issued under the newly enacted Carbon Capture, Utilisation, and Storage Act [Act 870] (CCUS Act 2025) gazetted on 1 October 2025.
It enables the ongoing collaboration between PCCSV, TotalEnergies and Mitsui & Co. under the Key Principles Agreement (KPA) dated July 2025 to continue advancing studies and evaluation of the Duyong area’s potential as a carbon storage site, which is part of the Southern CCS offshore hub development.
“The granting of the Offshore Assessment Permit by the MyCCUS Agency represents a critical milestone for the Duyong CCS project,” said Emry Hisham Yusoff, Chief Executive Officer of PCCSV.
“This permit allows our collaboration with TotalEnergies and Mitsui to advance to the next phase of technical studies and evaluations, bringing us closer to realising Duyong’s potential as a safe and commercially viable carbon dioxide (CO₂) storage site.”
All assessment activities will be conducted in full compliance with the CCUS Act 2025 and its Offshore Permit and Licensing Regulations 2025. Malaysia is targeting net zero by 2050.
Concerns were raised in March that the new law had been rushed and had not properly addressed carbon capture risks.