Malaysia’s oil sector set to flourish
Malaysia is set to emerge as a top petroleum investment spot in 2013, as state-backed oil major Petronas places a renewed emphasis on maximising domestic oil resources, after years of international expansion, an analysis by US-based oil and gas news portal Rigzone shows.
Realising that Malaysia could lose its position as a net oil exporter as oil output has been falling over the past years, fresh attempts had been made by the Malaysian government since 2011 to enhance production from existing and marginal fields, as well as boosting the development of new fields in deeper offshore areas.
The Malaysian government has put in place attractive tax-reduction measures to attract foreign oil companies into its offshore industry. Foreign companies investing in marginal fields only pay 25 per cent taxes from 2011, down from the original 38 per cent. On a case-by-case basis, foreign companies could also be exempted from both capital expenditure taxes and export duties, Rigzone reports
Malaysia has inked a string of high-profile deals in the second quarter of 2012, most of which are concentrated in the prolific Sarawak Basin. Based on the signed contracts, it appears that foreign investors are most keen to invest in the Sarawak Basin and the Sabah region, as the areas are already home to established petroleum producing blocks.
Local oilfield service providers have found themselves also moving into a boom cycle. This is especially true for top-side maintenance service providers, where domestic companies had made substantial progress in marketing themselves.
Moving into 2013, despite its aging oil fields, Malaysia’s petroleum industry looks set to start the year on an optimistic note. Activities in 2012 proved that Sarawak and Sabah still inspire confidence on the part of both local and foreign investors, and that foreign investors are still well-received. In this respect, Sarawak and Sabah will continue to play a critical role in Malaysia’s exploration and production sector, the analysis concludes.
[caption id="attachment_6110" align="alignleft" width="300"] Malaysia's oil fields. (Click to enlarge)[/caption] Malaysia is set to emerge as a top petroleum investment spot in 2013, as state-backed oil major Petronas places a renewed emphasis on maximising domestic oil resources, after years of international expansion, an analysis by US-based oil and gas news portal Rigzone shows. Realising that Malaysia could lose its position as a net oil exporter as oil output has been falling over the past years, fresh attempts had been made by the Malaysian government since 2011 to enhance production from existing and marginal fields, as well as boosting the development...
Malaysia is set to emerge as a top petroleum investment spot in 2013, as state-backed oil major Petronas places a renewed emphasis on maximising domestic oil resources, after years of international expansion, an analysis by US-based oil and gas news portal Rigzone shows.
Realising that Malaysia could lose its position as a net oil exporter as oil output has been falling over the past years, fresh attempts had been made by the Malaysian government since 2011 to enhance production from existing and marginal fields, as well as boosting the development of new fields in deeper offshore areas.
The Malaysian government has put in place attractive tax-reduction measures to attract foreign oil companies into its offshore industry. Foreign companies investing in marginal fields only pay 25 per cent taxes from 2011, down from the original 38 per cent. On a case-by-case basis, foreign companies could also be exempted from both capital expenditure taxes and export duties, Rigzone reports
Malaysia has inked a string of high-profile deals in the second quarter of 2012, most of which are concentrated in the prolific Sarawak Basin. Based on the signed contracts, it appears that foreign investors are most keen to invest in the Sarawak Basin and the Sabah region, as the areas are already home to established petroleum producing blocks.
Local oilfield service providers have found themselves also moving into a boom cycle. This is especially true for top-side maintenance service providers, where domestic companies had made substantial progress in marketing themselves.
Moving into 2013, despite its aging oil fields, Malaysia’s petroleum industry looks set to start the year on an optimistic note. Activities in 2012 proved that Sarawak and Sabah still inspire confidence on the part of both local and foreign investors, and that foreign investors are still well-received. In this respect, Sarawak and Sabah will continue to play a critical role in Malaysia’s exploration and production sector, the analysis concludes.
