Matahio's Stance on Entering into Low Carbon
Matahio's core business is in the development and production of oil and gas reservoirs. As part of our role as an operator, it is our responsibility to ensure we act responsibly and sustainably. Matahio has the skill set and experience to be a responsible oil and gas operator.
At a high level, Matahio believes it is viable for oil and gas companies to diversify into other forms of lower carbon energy businesses (e.g. renewables). Entering an emerging energy market, leveraging transferable technical and managerial skills and contributing to a just transition are all important business strategies. As a progressive oil and gas company committed to contributing to a sustainable energy future, the journey of diversification is one Matahio takes seriously.
It is also our belief that Matahio is not yet ready to diversify into low carbon energy markets due to the mismatch of its relative economics and the current scale of our business. For our size today, our focus must be to do what we do best: make the most of underexploited hydrocarbon fields to sustainably support the energy economies of the regions in which we operate. Our immediate contribution to a low carbon future is to minimise, or eliminate, any impacts from our operations on the environment.
Exploring Sustainable Energy Solutions and Identifying Steps for Entry
Matahio continues to assess and identify various low carbon technologies and geographies where we can both make a meaningful impact and successfully enter. With key advisors, we have conducted comprehensive research on potential pathways for diversifying into low-carbon technologies and the most promising countries for Matahio. In essence, our goal is to be build a diversification playbook, which guides us on the following challenges:
Which low carbon technologies are best suited to Matahio and where are they best applied?
When is the right time to enter and what are the triggers to do so?
How best to prepare for entry? What are the key actions needed to:
- gain technical experience
- build credible partnerships
- engage with regulators
- map out and screen assets
To fully understand the low carbon energy landscape in SE Asia, this analysis considers three parameters:
01
How well does each technology align, economically, with Matahio's current scale, scale post growth aspirations and existing technical competencies?
02
How active is the market and what is the potential for partnerships?
03
How robust are incentives and / or regulatory frameworks?
Among the findings, onshore solar energy emerged as one of the most attractive and viable pathways of our low carbon diversification strategy. We see strategic benefit in seeking opportunities to build our capability, as well as familiarise with the ecosystem players and local policies as we prepare to enter.
Driving Impact Through Renewable Energy in Local Communities
We are proud to collaborate with TONIBUNG (Friends of Village Development) — an indigenous-led non-profit focused on sustainable rural electrification, advocacy for native rights, and local entrepreneurship across Southeast Asia. This partnership aligns with our vision and builds upon our strong community connections in Malaysia, where Matahio is headquartered.
Our Objective
To work alongside TONIBUNG
Matahio has engineered and installed solar energy in underserved communities, thus improving the lives of those communities.
In partnership with TONIBUNG, we identified the Dusun indigenous community in Kg Walou, located 25 kilometres from the nearest main road in Ranau, Sabah, Malaysia. This remote village faces significant challenges, including energy poverty and unreliable traditional energy sources.
Previous attempts to install a Pico Hydro system failed to alleviate the community's energy shortages, particularly during dry seasons.
To address ongoing issues
We implemented a 20kW peak solar mini-grid system with a 40kWh battery, providing reliable electricity for lighting, cooking, and essential appliances. This initiative has greatly enhanced the daily lives of the Dusun community, enabling children to study after dark and improving healthcare access by powering medical facilities. Furthermore, reliable electricity will support local businesses, fostering economic growth and entrepreneurship. We also installed Starlink for internet connectivity, facilitating remote monitoring of the solar system and promoting digital access. The facility housing the solar equipment will serve as a multi-purpose community center, supporting socio-economic development.
To deliver operational excellence
We are proud to be actively involved in the execution process, which provided us with valuable insights into the critical role of energy access in enhancing community well-being and economic opportunities. This experience has deepened our understanding of the technical and economic aspects of renewable energy systems, shaping our approach for future initiatives.
Looking Ahead
We aspire to achieve transformative outcomes: improved quality of life, enhanced educational and economic opportunities, and a shift toward environmental sustainability. Our long-term vision is to empower the Dusun community to manage their own energy system, fostering self-sufficiency and promoting awareness of renewable energy.