Labuan: The Labuan Crude Oil Terminal (LCOT), a cornerstone of Malaysia’s oil and gas industry, is celebrating its 50th anniversary as a key player in the nation’s energy sector, according to Hibiscus Petroleum Bhd chairman Zainul Rahim.
According to BERNAMA News Agency, LCOT was commissioned in 1975 and has played a crucial role in connecting Sabah’s offshore production to global crude markets. Zainul emphasized LCOT’s significance as one of Malaysia’s initial steps toward becoming a prominent energy-producing nation. Despite technological advancements and global market changes, the terminal’s enduring reliability reflects the dedication of its operators.
Zainul highlighted LCOT’s ongoing vital function as the central storage and export facility for crude oil under the North Sabah Production Sharing Contract. The terminal has seen significant growth in daily production, from an initial export of 221,000 barrels to peaks nearing 100,000 barrels per day, underscoring the expansion of Malaysia’s oil and gas sector.
After decades of operation by Shell, Hibiscus Petroleum assumed control of LCOT in 2018, continuing its legacy of safe and efficient operations. Under Hibiscus, the terminal has implemented initiatives like a new effluent discharge line, enhanced security systems, and investments in digitalisation and predictive maintenance, all contributing to improved operational efficiency and sustainability.
LCOT recently earned the Prime Minister’s Hibiscus Award 2024/2025 for excellence in environmental sustainability. Zainul attributed the terminal’s success to its dedicated workforce and expressed gratitude to PETRONAS Carigali, government entities, and partners for their support.
Beyond its operational achievements, LCOT contributes to the Labuan community through various programmes focused on health, education, and social well-being, aligning with the UN Sustainable Development Goals. Initiatives include health campaigns, STEM education support, and community inclusion projects.
Zainul concluded by affirming Hibiscus Petroleum’s commitment to investing in technology and partnerships to maintain LCOT’s standard of excellence and sustainability. The 50-year milestone celebrates the terminal’s legacy of perseverance and purpose, with a forward-looking vision for responsible and efficient operations.