Malaysia Crude Oil Exports in 2025: $7.57 Billion in Trade, Where It Goes, and Who Ships It

Key Takeaways

• Malaysia crude oil exports (HS Code 2709) totaled $7.57 billion across 6,460 shipments in January–December 2025, per yTrade customs data
• All exports fell under a single sub-code — HS 270900 (petroleum oils, crude) — reflecting Malaysia's role as a bulk green crude exporter, not a grade-diversified origin
• Thailand dominated at 69.9% of value ($5.29B), consistent with long-term pipeline and term-contract supply to Thai refineries
• Extreme supplier concentration: PETCO Trading Labuan ($4.36B) and three other firms handled the vast majority of export value from just 6% of total shipments
• Malaysia produces premium Tapis Blend — a light sweet crude with API gravity of 43°–45° and just 0.04% sulfur — which typically trades at a premium to Brent
• The ongoing Strait of Hormuz disruption in 2026 has heightened global focus on Malaysia's crude export flows and import dependencies

Why Malaysia Exports Its Own Oil — Then Imports Crude From the Middle East

Before diving into the trade data, it helps to understand a fundamental quirk of Malaysia's oil economy that puzzles many first-time observers: Malaysia is both a crude oil exporter and a major crude oil importer.

Malaysia's domestic crude — particularly Tapis Blend from offshore Terengganu and Kimanis crude from Sabah — is among the highest-quality oil in the world. With an API gravity of 43°–45° and sulfur content of just 0.03–0.04%, Tapis qualifies as ultra-light, ultra-sweet crude that requires minimal refining to produce premium fuels like jet fuel and gasoline. This quality commands a significant price premium over global benchmarks like Brent and WTI.

The rational economic decision, as Sunway University economist Dr. Yeah Kim Leng explained, is to export this premium crude for top dollar and import cheaper, heavier sour crude from Saudi Arabia, the UAE, and Oman to feed Malaysian refineries. Most of Malaysia's six refineries are configured to process heavier Middle Eastern crude — not the country's own light sweet output. The Pengerang Integrated Complex (PRefChem), a joint venture between Petronas and Saudi Aramco, receives feedstock directly from Saudi Arabia.

The numbers tell the story: in 2025, Malaysia exported RM23.76 billion in crude petroleum and condensates, while importing RM54.11 billion — 69% of which came from the Middle East. Malaysia's domestic crude output sits at roughly 350,000 barrels per day, while its refining system requires about 700,000 barrels per day. That structural gap is filled by imports.

This context is essential for interpreting the HS 2709 export data below. The $7.57 billion in crude exports represents Malaysia's premium-grade production being sent to refineries abroad that value its quality — not a sign that Malaysia has no domestic energy needs.

Malaysia Crude Oil Export Value and Volume in 2025

Malaysia's crude oil exports under HS Code 2709 totaled $7.57 billion across 6,460 shipments in 2025. All recorded trade fell under a single sub-code: HS 270900 (oils; petroleum oils and oils obtained from bituminous minerals, crude). There was zero HS-level diversification — no recorded exports of more specific crude grades or processed types under this code.

This monolithic structure is typical for a country that exports bulk, ungraded crude. What Malaysia's crude lacks in product variety, it makes up for in quality premium — Tapis-grade crude routinely trades above Brent and WTI, giving Malaysian crude a per-barrel value advantage that partially explains the high total value relative to the volume exported.

Table: Malaysia Crude Oil (HS Code 2709) Export Breakdown (Source: yTrade)

HS Code	Product Description	Value	Weight	Quantity	Frequency	Value Ratio
270900	Oils; petroleum oils and oils obtained from bituminous minerals, crude	7.57B	221.10M	243.40M	6.46K	100.00%

For reference, DOSM reported that Malaysia's total crude oil and condensate production reached 183.6 million barrels in 2025 — a 1.1% increase from 2024. Production grew despite the long-term trend of maturing fields; the U.S. Energy Information Administration notes that Malaysia had 19 new discoveries in 2023 alone, which could add over 1 billion barrels of oil equivalent, with 16 of those in Sarawak.

Where Does Malaysia's Crude Oil Go? Top Destination Countries

Malaysia's crude oil exports are heavily concentrated — Thailand alone takes nearly 70% of total value. This is not a diversified commodity flow; it's a relationship-driven supply chain anchored in long-term contracts and geographic proximity.

Thailand — $5.29B (69.9% of value, 68.6% of weight)

Thailand's dominant position reflects a structural relationship, not a one-off trade pattern. Malaysia and Thailand share maritime borders and operate the Malaysia-Thailand Joint Development Area in the Gulf of Thailand, overseen by a joint authority with 50/50 resource ownership. Thai refineries — operated by PTT Group and others — are configured to process regional crude grades, and Malaysia's proximity makes it a natural long-term supplier. The near-identical value and weight shares (69.9% vs. 68.6%) suggest bulk, term-contract supply at relatively stable pricing.

Australia — $991.73M (13.1% of value, 6.6% of weight)

Australia's high value-to-weight ratio stands out. This suggests Australian buyers are purchasing lighter, sweeter Malaysian crude (likely Tapis-grade) that commands a higher per-barrel price — consistent with Australia's refining sector, where remaining refineries favor lighter feedstock for high-value fuel production.

China — $428.02M (5.7% of value, 2.6% of weight)

China's relatively small share by both value and weight suggests targeted purchasing — possibly for strategic reserve top-ups or specific refinery configurations that require lighter crude to blend with heavier domestic and Middle Eastern imports.

Singapore — $310.58M (4.1% of value, 21.6% of weight)

Singapore's pattern is the inverse of Australia's: high weight but low value. This is characteristic of Singapore's role as Southeast Asia's primary oil trading and refining hub. Much of what enters Singapore's storage and blending facilities gets re-exported or refined for the regional market. The high shipment frequency (6,120 out of 6,460 total shipments) confirms that Singapore-bound trade is primarily smaller, frequent commercial lots — trading activity rather than bulk supply contracts.

Brunei — $195.00M (2.6% of value, 0.2% of weight)

Brunei's high value-to-weight ratio and small volume suggest niche activity — possibly swap agreements between Petronas and Brunei Shell, or crude exchange arrangements related to shared offshore production in the South China Sea.

Table: Malaysia Crude Oil Top Destination Countries (Source: yTrade)

HS Code	Country	Value	Quantity	Frequency	Weight
270900	Thailand	5.29B	162.23M	129	151.67M
	Australia	991.73M	21.16M	75	14.49M
	China	428.02M	9.53M	20	5.72M
	Singapore	310.58M	48.00M	6,120	47.85M
	Brunei	195.00M	343.10K	53	343.10K

The concentration risk here is real. If Thailand's refinery demand shifts — due to domestic gas-to-power substitution, refinery upgrades, or alternative sourcing from the Middle East — Malaysia loses its single largest crude export market.

Who Are the Top Crude Oil Exporters from Malaysia?

Malaysia's crude oil export supply base is extremely concentrated. A handful of companies — all connected to major international or state oil operators — dominate the trade.

Table: Malaysia Crude Oil (HS Code 2709) Top Suppliers (Source: yTrade)

Supplier Company	Value	Quantity	Frequency	Weight
PETCO Trading Labuan Company Ltd	4.36B	93.96M	195	93.93M
Hibiscus Oil & Gas Malaysia Ltd	868.11M	52.81M	23	52.81M
Petroliam Nasional Berhad	412.80M	5.34M	17	2.29M

PETCO Trading Labuan — $4.36B

PETCO Trading Labuan is the single largest crude oil exporter from Malaysia by a wide margin — accounting for over 57% of total HS 2709 export value. PETCO is a Petronas subsidiary domiciled in the Labuan International Business and Financial Centre (IBFC), Malaysia's offshore financial hub. Labuan's tax framework — including favorable treatment for commodity trading companies — makes it a common domicile for oil and gas trading entities operating in Southeast Asia. PETCO's 195 shipments across the year indicate consistent, high-frequency bulk exports — likely executing term contracts with Thai and Australian refineries.

Hibiscus Oil & Gas Malaysia — $868.11M

Hibiscus Petroleum is Malaysia's largest independent oil and gas exploration and production company, listed on Bursa Malaysia. Its producing assets include fields in Peninsular Malaysia and the North Sabah PSC. Unlike Petronas group entities, Hibiscus operates as a pure-play upstream producer — the $868M in exports represents direct field-to-market crude sales. The relatively low shipment frequency (23 shipments for $868M) indicates bulk cargo-level exports — averaging roughly $37.7M per shipment.

Petroliam Nasional Berhad (Petronas) — $412.80M

Petronas, Malaysia's national oil company, appears directly in the data with a smaller but significant export value. The lower weight relative to value ($412.80M on just 2.29M weight) could indicate higher-grade crude exports or condensate-heavy shipments. With only 17 shipments, these are likely targeted, high-value cargoes rather than routine pipeline supply.

What This Supplier Structure Means

The top three named suppliers alone account for the vast majority of Malaysia's crude oil export value. This extreme concentration — where roughly 90% of value comes from fewer than 6% of shipments — creates significant supply chain concentration risk for buyers. If any single major operator faces production disruptions, maintenance shutdowns, or regulatory issues, the impact on supply availability is immediate.

For importers sourcing Malaysian crude, this means relationship management with PETCO/Petronas and Hibiscus is far more important than broad market sourcing. Contract terms, documentation quality, and shipping logistics with these specific entities determine access to Malaysian crude.

Malaysia Crude Oil Outlook 2026: The Hormuz Factor

Malaysia's crude oil export picture in 2026 is shaped by a dramatic external shock: the Strait of Hormuz disruption triggered by the Iran conflict, which has severely constrained global crude oil flows since early 2026.

Immediate Impact on Malaysia's Import Side

Nearly 40% of Malaysia's crude oil imports transit through the Strait of Hormuz, and 69% of Malaysia's crude imports come from the Middle East. Saudi Arabia alone supplies 33% of Malaysia's imported crude. With tanker traffic through the strait dropping to single digits per day from over 100, and war-risk insurance premiums spiking from 0.15–0.25% to as high as 5–10% of hull value, Malaysia's refinery feedstock costs have risen sharply.

What This Means for Malaysian Crude Exports

Paradoxically, the Hormuz disruption could be positive for Malaysian crude export values. With Middle Eastern crude supply constrained globally, Asian refiners in Japan, South Korea, and India who previously sourced from the Gulf may increase demand for Malaysian Tapis and Kimanis grades — both of which are shipped entirely outside the Hormuz chokepoint. Malaysia's crude moves through the South China Sea and the Malacca Strait, bypassing the Persian Gulf route entirely.

Brent crude has surged above $100/barrel since the crisis began, and Tapis Blend — already trading at a premium to Brent — benefits further. For exporters like PETCO and Hibiscus, this means higher per-barrel revenue on existing volumes.

Production Outlook

Malaysia's proved oil reserves stood at 2.7 billion barrels as of 2023, making it the second-largest reserve holder in Southeast Asia. Production grew 1.1% in 2025, and Petronas plans to drill more than 25 wells per year through 2026, with a focus on shallow water wells in Sarawak and deepwater wells in Sabah. However, over 95% of Malaysia's coffee — and similarly its oil fields — are mature assets, with natural depletion an ongoing structural challenge.

Petronas has also begun diversifying its import sources to West Africa and Latin America — over 22% of Malaysia's crude imports in 2025 came from these regions — as a hedge against prolonged Hormuz disruption.

Compliance Considerations for HS 2709 Traders

Under the current geopolitical environment, crude oil shipments under HS Code 2709 face heightened scrutiny across multiple compliance dimensions:

Origin documentation: The G7 oil price cap policy targets crude shipments to limit Russian oil revenue. While Malaysian crude is not directly affected, the compliance environment means all HS 2709 shipments now face more rigorous origin verification at customs — particularly when transiting through Singapore, where blending and re-export activity can obscure origin.

Classification risk: Traders should be alert to potential misclassification of crude (HS 2709) as refined products (HS 2710), a known issue that can trigger customs holds and compliance investigations. Ensuring correct classification before shipment reduces the risk of port-side delays.

Sanctions screening: With the Iran conflict ongoing, any crude shipment moving through Southeast Asian waters faces enhanced screening. Buyers of Malaysian crude should verify that their shipping, insurance, and financing arrangements do not inadvertently involve sanctioned entities. yTrade's sanctions and compliance monitoring module can screen counterparties against 650+ global sanctions lists.

Frequently Asked Questions

How much crude oil did Malaysia export in 2025 (HS Code 2709)?

According to yTrade customs data, Malaysia exported $7.57 billion in crude oil under HS Code 2709 across 6,460 shipments in January–December 2025. All exports were classified under sub-code 270900 (petroleum oils, crude), with no HS-level product diversification.

Why does Malaysia export crude oil and also import crude oil?

Malaysia produces premium light sweet crude (Tapis Blend, Kimanis) with very low sulfur content that commands higher prices abroad. Rather than refining all of it domestically, Malaysia exports this premium crude and imports cheaper, heavier crude from the Middle East — mainly Saudi Arabia and the UAE — to feed its refineries, which are configured for heavier feedstock. This trade maximizes national revenue.

Which country buys the most Malaysian crude oil?

Thailand was the dominant buyer in 2025, accounting for 69.9% of HS 2709 export value ($5.29 billion). This reflects long-term term-contract supply to Thai refineries, supported by the geographic proximity and the Malaysia-Thailand Joint Development Area in the Gulf of Thailand. Australia (13.1%) and China (5.7%) were the next largest buyers.

Who are the top companies exporting crude oil from Malaysia?

PETCO Trading Labuan Company Ltd (a Petronas subsidiary) was the largest exporter at $4.36 billion, followed by Hibiscus Oil & Gas Malaysia Ltd ($868.11 million) and Petroliam Nasional Berhad ($412.80 million). These three entities account for the overwhelming majority of Malaysia's crude oil export value.

What type of crude oil does Malaysia export?

Malaysia primarily exports light sweet crude oil, with Tapis Blend being the most prominent grade. Tapis has an API gravity of 43°–45° and sulfur content of just 0.03–0.04%, making it among the highest-quality crude oils globally. This quality means Malaysian crude trades at a premium to international benchmarks like Brent and WTI.

How does the Strait of Hormuz crisis affect Malaysia's oil trade?

The Hormuz disruption in 2026 primarily affects Malaysia's crude import side — nearly 40% of its crude imports transit through the strait. However, Malaysian crude exports move through the South China Sea and Malacca Strait, bypassing Hormuz entirely. This could increase demand for Malaysian crude from Asian refiners seeking non-Gulf supply alternatives.