TOGY talks to Hernando Caceres, director of oil & gas for DNV GL Malaysia, about how the Malaysian oil and gas industry is responding to the current market conditions…
READ MOREMalaysia's Energy Industry
in figures
Oil reserves2.7 billion barrels
Oil production573,000 bopd
Gas reserves900 mcm
Gas production74.2 bcm
Malaysia: LNG exporter
Malaysia’s oil and gas industry is a major pillar of the nation’s economy. The country of more than 23 million citizens is the second-largest hydrocarbons producer in Southeast Asia and the fifth largest exporter of LNG in the world. Malaysia began producing oil in the early 1900s from onshore assets in Sarawak and began moving into shallow-water plays in Peninsular Malaysia, Sarawak and Sabah in the 1960s. New technologies have unlocked new opportunities for more industrious offshore plays in the country’s main producing basins. The government has long pursued development of its maturing and marginal fields and further exploration activities to address a decline in production.
Malaysia’s oil and gas industry is tightly led by its NOC Petronas, which was established in 1974 and holds exclusive ownership rights to all E&P activities. The company’s contributions comprise around 35% of the state’s revenue. State-run upstream watchdog Petroleum Management Unit is responsible for handing out and overseeing production sharing licences in the country. The country has successfully attracted international IOCs interested in taking part in upstream opportunities, including ExxonMobil, Shell, ConocoPhillips, Spain’s Repsol and Japan’s JX Nippon Oil and Gas.
The nation is one of the world’s largest gas producers and exporters. While Malaysia’s NOC is the lead player in gas production and assets, Shell has established itself the second largest producer along with ExxonMobil, Thailand’s PTT Exploration and Production Public Company and Indonesia’s Pertamina having large shares in gas production. The largest domestic destinations for produced gas are the country’s industrial sector, which takes up around 49%, and the power generation sector, which takes up around 50%.
Malaysia boasts an extensive natural gas pipeline network. The majority, known as the Peninsular Gas Utilization network, is located in Peninsular Malaysia. Export of LNG comes from Malaysia’s regasification terminals, which are connected to its major pipeline network and exported to Singapore. LNG is mainly exported to other countries in the Asia Pacific region, with Japan and China being the main importers of Malaysian gas.
The oil pipeline system in the country is limited, and transport of the product remains largely dependent on tankers and onshore vehicles. The country has initiated projects to expand its oil storage capacity based on a capacity shortage in Southeast Asia, particularly in Singapore; Malaysia aims to become a regional storage alternative. Continued investment in refining activity over the last few decades has led to Malaysia generally meeting its domestic requirements. The nation is now looking to expand its refining capacity to supply the region and capitalise on exports.
Malaysia's Petronas has made a third oil and gas discovery in Suriname's offshore Block 52.
READ MORESapura Energy has been awarded a five-year contract from Thailand’s PTTEP for subsea services in Malaysia.
READ MORETotalEnergies has fully acquired Malaysia's SapuraOMV Upstream.
READ MOREMcDermott has won a contract from a Malaysian PTTEP subsidiary to enable gas delivery to a subsea production system tied back to the Kikeh FPSO.
READ MOREMalaysia's Petronas is eyeing new investments in the Atlantic Basin in a bid to boost its global LNG market share to 10%.
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READ MOREPetronas is reportedly planning additional job cuts amidst persistently low oil prices, sources familiar with the matter said on Tuesday. The move follows plans…
READ MOREMalaysia’s Petronas reported a 21% year-on-year drop in quarterly revenue on Monday, with the company’s net profit continuing on a downward…
READ MOREIndonesia’s Pertamina produced 305,000 bopd during the first six months of 2016, the company said late on Tuesday, up around 11% year-on-year.
Pertamina…
READ MOREThe world’s first producing full-scale FLNG vessel arrived at the Kanowit offshore gasfield in Malaysia, the company reported on social media on…
READ MOREMalaysian major Petronas has seen its pre-tax profit dwindle to USD 1.68 billion over the first quarter of 2016, down 60% year-on-year. Announced on Wednesday, the…
READ MOREAndy Bratamihardja, president-director of Rothschild in Indonesia, talks to TOGY about how the financial industry is supporting the oil and gas industry, advice for…
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