Malaysia announced it is evaluating new crude oil sources to diversify supply amid global geopolitical tensions and energy risks. Economy Minister Akmal Nasrullah Mohd Nasir made the announcement on June 10 at the opening of the NCER Technology and Innovation Centre in Malaysia. [1, 2, 3, 4]

The government is conducting technical assessments to ensure new crude oil supplies are compatible with the country's existing refining facilities. "Each crude oil supply from different regions has different characteristics, so an assessment must be made on whether our facilities can receive and process the supply," the minister said. [1]

Potential new suppliers under consideration include Russia, Türkiye, several African countries, South America, and the United States. Malaysia's current crude imports primarily come from the Middle East and Africa, including Gabon, Cameroon, Angola, Sudan, Congo, Libya, and Nigeria, with some supply from South America and the U.S. [1, 2, 5, 4]

Refined petroleum products are mainly imported from Singapore. [2]

The effort to diversify comes amid disruptions from the war in the Middle East affecting energy supplies and key shipping routes like the Strait of Hormuz. This has created a global energy crunch prompting Malaysia to reduce its supply risk. [5, 4]

The government has assured that oil supply is secured until July 31, 2026, based on existing contracts. "It does not mean we are facing a difficult situation," Nasrullah said, emphasizing the guarantee is a formal confirmation of current agreements. [6, 3]

He added that the government avoids signing long-term contracts due to the volatility of global crude prices, preferring flexible supply arrangements to avoid costly market shifts. [1, 2, 7]

Malaysia plans to announce updates on supply security and new procurement agreements by the end of June 2026, following ongoing negotiations and the National Economic Action Council meeting. [2, 7, 3]

The government continues technical evaluations to ensure any new crude sources are suitable for Malaysia's refining infrastructure. "It is not simply about sourcing oil from everywhere, but ensuring that supplies from particular regions are compatible with the facilities we have," the minister stated. [1]

The June announcement marks the latest step in Malaysia's efforts to navigate energy uncertainties while maintaining supply stability.