Malaysian oil and gas sector to keep bullish trend

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malaysia_oil_and_gas_fields
Malaysia’s oil and gas fields (Click to enlarge)

Supported by several government initiatives and significant private sector investments, Malaysia’s oil and gas sector registered a 3 per cent increase in volume in the first quarter of 2013 compared to the same period last year.

State-owned oil giant Petronas’ commitment to exploration, infrastructure development and investments in new technologies as well as new contract schemes are the key ingredients of the sector bullish pace.

According to official records, in the first quarter of 2013 Malaysia produced 1.69 million barrels of oil equivalent per day (boe/d), a 3 per cent increase from 1.64 million boe/d registered in the first quarter of 2012. In the same period, the country produced almost 2 per cent of the world’s natural gas, accounting for around 13 per cent of global LNG exports. With respect to reserves, Malaysia is currently ranked as the third largest country in the Asia-Pacific region after China and India, and its deep-water potential is estimated at 10 billion boe, whilst only three billion have been discovered so far.

This untapped potential is one of the main industry drivers, and the public sector is the most dynamic player in the field. Petronas is not only pushing for the development of more deep-water and high-carbon dioxide oil fields, but it also supported by new legal frameworks to attract more participants in this buoyant market and its subsectors. In this regard, the recently introduced RSC contract scheme (Risk Security Contracts) brought to the country various international companies.

With the announcement of the Economic Transformation Programme (ETP) in 2010, more than 105 marginal fields were identified and 25 of them have been awarded for exploitation under the new RSC arrangement. New exploration and production licenses have been proposed under the third RSC licensing round, which will award 10 new fields.

Furthermore, new incentives were introduced in March 2013 by the government to boost the development of marginal oil fields. These measures are aimed at fostering the transformation of Malaysia from a producer to a global integrated trading oil and gas hub. Similarly, through the Global Incentive For Trading (GIFT) programme, the government is trying to encourage international trading companies to use Malaysia as regional base for storage and trading operations. Authorities are also pushing major oilfield services and equipment firms to base 10 per cent of their business operations in Malaysia under the NKEA (National Key Economic Areas) programme.

With regards to overseas investment,  two new liquefied natural gas facilities will be built in the northwest region of Canada at an investment of around $20 billion, Petronas said on June 11. LNG liquefaction plants would be constructed on Lelu Island, British Columbia, while another $5 billion will be invested in a 750-kilometer pipeline to be built by TransCanada Corporation for supplying gas to the two new plants.

Petronas has been actively seeking to acquire foreign oil and gas assets. Its latest planned acquisition is a 40 per cent stake in two offshore blocks of Brazil’s Tubarao Martelo oil field from OGX Petroleo e Gas Participacoes SA at a value of $850 million.

The total value of contracts awarded to locally listed oil and gas companies soared to over $3.5 billion during the first four months of 2013. In 2012, there were also a number of notable mergers and acquisitions, the largest being the formation of SapuraKencana Petroleum Bhd, which created the world’s fifth s largest integrated oil and gas services and solutions provider.

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Reading Time: 2 minutes

Malaysia’s oil and gas fields (Click to enlarge)

Supported by several government initiatives and significant private sector investments, Malaysia’s oil and gas sector registered a 3 per cent increase in volume in the first quarter of 2013 compared to the same period last year.

Reading Time: 2 minutes

malaysia_oil_and_gas_fields
Malaysia’s oil and gas fields (Click to enlarge)

Supported by several government initiatives and significant private sector investments, Malaysia’s oil and gas sector registered a 3 per cent increase in volume in the first quarter of 2013 compared to the same period last year.

State-owned oil giant Petronas’ commitment to exploration, infrastructure development and investments in new technologies as well as new contract schemes are the key ingredients of the sector bullish pace.

According to official records, in the first quarter of 2013 Malaysia produced 1.69 million barrels of oil equivalent per day (boe/d), a 3 per cent increase from 1.64 million boe/d registered in the first quarter of 2012. In the same period, the country produced almost 2 per cent of the world’s natural gas, accounting for around 13 per cent of global LNG exports. With respect to reserves, Malaysia is currently ranked as the third largest country in the Asia-Pacific region after China and India, and its deep-water potential is estimated at 10 billion boe, whilst only three billion have been discovered so far.

This untapped potential is one of the main industry drivers, and the public sector is the most dynamic player in the field. Petronas is not only pushing for the development of more deep-water and high-carbon dioxide oil fields, but it also supported by new legal frameworks to attract more participants in this buoyant market and its subsectors. In this regard, the recently introduced RSC contract scheme (Risk Security Contracts) brought to the country various international companies.

With the announcement of the Economic Transformation Programme (ETP) in 2010, more than 105 marginal fields were identified and 25 of them have been awarded for exploitation under the new RSC arrangement. New exploration and production licenses have been proposed under the third RSC licensing round, which will award 10 new fields.

Furthermore, new incentives were introduced in March 2013 by the government to boost the development of marginal oil fields. These measures are aimed at fostering the transformation of Malaysia from a producer to a global integrated trading oil and gas hub. Similarly, through the Global Incentive For Trading (GIFT) programme, the government is trying to encourage international trading companies to use Malaysia as regional base for storage and trading operations. Authorities are also pushing major oilfield services and equipment firms to base 10 per cent of their business operations in Malaysia under the NKEA (National Key Economic Areas) programme.

With regards to overseas investment,  two new liquefied natural gas facilities will be built in the northwest region of Canada at an investment of around $20 billion, Petronas said on June 11. LNG liquefaction plants would be constructed on Lelu Island, British Columbia, while another $5 billion will be invested in a 750-kilometer pipeline to be built by TransCanada Corporation for supplying gas to the two new plants.

Petronas has been actively seeking to acquire foreign oil and gas assets. Its latest planned acquisition is a 40 per cent stake in two offshore blocks of Brazil’s Tubarao Martelo oil field from OGX Petroleo e Gas Participacoes SA at a value of $850 million.

The total value of contracts awarded to locally listed oil and gas companies soared to over $3.5 billion during the first four months of 2013. In 2012, there were also a number of notable mergers and acquisitions, the largest being the formation of SapuraKencana Petroleum Bhd, which created the world’s fifth s largest integrated oil and gas services and solutions provider.

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