Release date: 2010-01-12
 

Increasing Global Demand for Oil & Gas to Boost Malaysia's Upstream Oil & Gas Industry Finds Frost & Sullivan
 

(PRZOOM - Press & Newswire) —  Singapore, Singapore, 2010-01-12 - The oil & gas upstream expenditure in Malaysia for the financial year ending March 31, 2009 was RM22.31 billion and this is about 4% higher than the previous years' expenditure as per the figures released by PETRONAS

   
 

The upstream expenditure has doubled in Malaysia in the last five years.

According to Frost & Sullivan Asia Pacific Associate Director of Energy & Power Systems Practice Subramanya Bettadapura, global demand for oil and gas is projected to increase in the next 3 to 5 years driving demand for material, equipment and services catering to the upstream oil & gas industry in Malaysia.

Other factors driving demand include the increase of Capital Expenditure (Capex) by PETRONAS and the increase in deepwater discoveries in the last five years. "Almost 40% of new discoveries in the last five years are in deepwater. Deepwater projects require more Capex for development," he adds.

He continues, "With output declining from mature shallow water fields, oil prices are set to increase thereby triggering more investment into the upstream sector. Capex planning is strategic for oil companies having long term relationship in Malaysia and so periods of low oil prices do not necessarily suppress expenditure."

There are currently 71 production sharing contracts (PSCs) that are in operation in Malaysia.

"Gumusut-Kakap, Malikai, Kebabangan, Jangas, Ubah Crest, Pisangan, Kamunsu are the deepwater fields that are being developed. Most of these are expected to come onstream in the 2010 to 2015 period," Bettadapura says.

He continues, "Deepwater field development is a major area of activity in the Malaysian upstream sector. SapuraAcergy Sdn Bhd won a contract valued at approximately RM2.80 billion for the development of the offshore Gumusut-Kakap field."

In terms of industry specifics, the development of marginal fields in Malaysian waters and in the region offers plenty of opportunities. Around 90 marginal fields have been identified in Malaysia that can be developed.

According to Bettadapura, technologies that offer a highly cost-effective solution which can bring fields online faster would be the preferred. "The Mobile Offshore Production Storage Unit (MOPSU) is one such technology, if successful in Malaysian waters, can revolutionize marginal fields' development in the region. A home grown Malaysian company, Perisai Petroleum is developing the MOPSU technology," he continues.

Industry trends will see Malaysian companies actively exploring opportunities in the Southeast Asian region and beyond. "Indonesia, Middle East and Africa offer ample scope to Malaysian companies for geographic expansion. Malaysian companies that have honed their skills working on world class projects in Malaysia stand to benefit from the growing opportunities globally," says Bettadapura.

ther hot sub-sectors in the Malaysian upstream sector identified by Bettadapura include material, systems and service to the deep water oil & gas industry; seabed to surface engineering and construction; engineering, procurement and construction; drilling services and material; Brown field services; and marginal field development.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

   
 

Agency / Source:

 
 
# # #
 
  Related Link: http://www.frost.com
 Contact name: Donna Jeremiah / Carrie Low
  Related Link:
 Contact: +603 6204 5832 / +603 6204 5910 / djeremiah[.]frost.com / carrie.low[.]frost.com
PRZOOM disclaims any content contained in these release. Our complete disclaimer appears on our disclaimer page. Issuers of releases are solely responsible for the accuracy of their content. All trademarks are the property of their respective owners.
© PRZOOM.com - NewswireToday.com - Press Release & Newswire Distribution Network.


Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
 
NewswireToday Celebrates 10 Years in Business
Find business coaching, life coaching, executive coaching and corporate coaching, best selling coaching books, ...



PREMIUM Members


Visit  BizJobs.com

Visit  NAKIVO, Inc.

Visit  JobsWare.com







 
  ©2017 PRZOOM — Limelon Advertising, Co.
Home | About PRZOOM | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneur newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today