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Six shales and four coals of the Kapilit Formation (Early to Middle Miocene) from the adjacent area of Eucalyptus campsite, Maliau Basin, Sabah were analysed using organic petrological and organic geochemical methods to determine their hydrocarbon generating potential, maturity and depositional environment. The organic richness of the shale samples is generally good to very good, whilst for the coals, as usual, show very good organic carbon richness. The shale samples also show good to very good hydrocarbon generating potential (S2 values from 5.0 to 37.3 mg HC/g rock), except for two samples which possess poor hydrocarbon generating potential (S2 5.0) ratio, odd-over-even n-alkane distributions, presence of oleananes and dominance of C29 sterane homologs. Tricyclic terpanes and C30 steranes which are derived mainly from algae organic matter are present in very low relative abundance or are virtually absent. The depositional environment for the shales and coals is probably in a coastal plain or deltaic setting under oxic condition.

Hydrocarbon generation potential of the coals and shales around the Eucalyptus Campsite area, Maliau Basin, Sabah