Environmental groups warned that Malaysia’s latest oil and gas bid round could open protected marine ecosystems to fossil fuel exploration, putting a critical transboundary biodiversity corridor at risk.
In a statement marking Earth Day, RimbaWatch and the Center for Energy, Ecology, and Development (CEED) flagged Block SB304 under the Malaysia Bid Round 2026, saying the offshore concession overlaps with conservation areas in the Sulu-Sulawesi Marine Ecoregion.
The block, located off the coast of Sandakan, covers the Sugud Islands Marine Conservation Area and Turtle Island Park in Malaysia and borders the Turtle Islands Wildlife Sanctuary in the Philippines.
These areas serve as habitats for endangered species, including green and hawksbill sea turtles, coral reefs, sharks, and seagrass ecosystems.
“These are not ordinary waters. They are among the most biodiverse marine ecosystems in the world and sustain coastal communities across borders,” the groups said, warning that “allowing fossil fuel extraction in these areas puts both nature and livelihoods at unacceptable risk.”
The groups said seismic surveys and drilling operations could disrupt marine life, damage seabeds, and raise the risk of oil spills that may cause long-term contamination.
They said the threat is especially acute for the Turtle Islands Wildlife Sanctuary, the only major nesting site of green sea turtles in Southeast Asia, where even minor oil spills could contaminate nesting beaches and reduce hatchling survival.
The proximity of the exploration area to Philippine waters also raises concerns over transboundary environmental harm, the groups said, noting long-standing cooperation between Malaysia and the Philippines through the Turtle Islands Heritage Protected Area.
“Oil spills do not respect borders. A single incident could have devastating consequences for both Malaysian and Philippine waters,” the groups said.
The groups said the expansion of fossil fuel exploration runs counter to scientific consensus that no new oil and gas development is compatible with limiting global warming to 1.5°C and warned it could undermine Malaysia’s commitment to achieve net-zero emissions by 2050.
They added that states have a legal obligation to prevent transboundary environmental harm and cautioned that approving projects with foreseeable cross-border risks may raise concerns under international law.
RimbaWatch and CEED called on the Malaysian government to halt the offering and awarding of Block SB304 and align energy policy with a 1.5°C pathway. They also urged state energy firm PETRONAS to exclude marine protected areas from oil and gas activities and to end exploration in the Coral Triangle.
“This is a critical moment for Southeast Asia. The region must choose between expanding fossil fuels or protecting the ecosystems that sustain its people,” the groups said, adding that “protecting the Coral Triangle is not optional. It is essential for our shared future.”
