Malaysia joins growing number of Southeast Asian countries seeking to secure Russian oil

Malaysia is joining a growing list of countries in Southeast Asia seeking to secure oil from Russia amid an energy crunch as a result of the US-Israel conflict with Iran that is now into its eighth week.

Prime Minister Anwar Ibrahim on Saturday (Apr 18) said that national oil company Petronas is set to negotiate with Russia to purchase oil and ensure a sufficient supply for domestic use, The Star reported.

Anwar noted that many European and American countries that previously sanctioned Russia are now competing to buy its oil.

“Fortunately, our relations with Russia remain good. Therefore, the Petronas team can negotiate with them,” he was quoted as saying by Malay language daily Sinar Harian.

Earlier, there have been reports that several other Southeast Asian nations had also reached out to or struck deals to purchase Russian oil.

On Monday, Indonesia President Prabowo Subianto met Russia President Vladimir Putin in Moscow as part of “efforts to strengthen strategic cooperation between the two countries amid evolving global dynamics”.

Cabinet Secretary Teddy Indra Wijaya said that the meeting between the two leaders lasted five hours, beginning with a two-hour bilateral session followed by a three-hour four-eye discussion.

“Several points were agreed upon, including long-term cooperation in the energy and mineral resources sector, such as oil and gas, energy security and downstreaming,” Teddy wrote in a written statement.

On Tuesday, The Philippines’ Secretary of Energy Sharon Garin said that her country has asked the US to extend a waiver to purchase Russian oil and petroleum products.

Garin added that her country is diversifying its energy sources and supply options are not limited to Russia, with the Philippine government also eyeing producers in South America, including Colombia and Argentina, as well as Canada and the US.

The Philippines is an ally of the US, and the Southeast Asian country last month declared a state of national energy emergency.

Meanwhile, Reuters reported last month that Vietnamese Prime Minister Pham Minh Chinh left on Mar 22 for an official visit to Russia during which the two nations will sign several agreements, including on oil and gas cooperation.

The war has killed thousands, spread to Israeli attacks in Lebanon and sent oil prices surging because of the de facto closure of the strait, which before the war carried one-fifth of the world’s oil shipments, Reuters reported.

Earlier on Friday, Iran had announced the temporary reopening of the Strait of Hormuz. But Tehran reversed course on Saturday to reassert control over the strait, again closing the energy choke point and adding fresh uncertainty to the war.

Iran said it was responding to a continued US blockade of Iranian ports, calling it a violation of the ceasefire, while Supreme Leader Ayatollah Mojtaba Khamenei said Iran’s navy was ready to inflict “new bitter defeats” on its enemies. 

On Saturday, Anwar said that early diplomatic efforts by the government ensured that Malaysian oil tankers were among the first to pass through the critical route in the Strait of Hormuz in recent weeks.

He added that securing a Malaysian oil tanker through the strait had helped avert major disruptions to the country’s energy supply chain.

“Thankfully, a Petronas oil tanker arrived safely at the Pengerang Integrated Complex (on Friday). Deliveries to Pengerang are crucial because refining can only be done there,” he was quoted as saying by Free Malaysia Today (FMT).

Separately, Petronas on Wednesday said that fuel supply at its stations nationwide will remain secure until the end of June, extending its earlier projection by a month.

-- Agencies