Steve Newman, the former CEO of Swiss offshore drilling contractor Transocean, will be the new independent director for Malaysian offshore oilfield services provider…
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.
McDermott has won a contract from a Malaysian PTTEP subsidiary to enable gas delivery to a subsea production system tied back to…
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READ MOREMalaysia's Petronas is eyeing new investments in the Atlantic Basin in a bid to boost its global LNG market share to 10%.
READ MOREFouad Mohammed Ali, CEO and managing partner of Upstream Solutions, talks to The Energy Year about the company’s role in Kuwait’s oil and gas industry and its…
READ MORERystad Energy has predicted a rise in upstream M&As in Southeast Asia in the next two years based on more than USD 5 million in assets on offer, the energy research…
READ MOREShell has completed the sale of two offshore oil and gas concessions in Malaysia’s Baram Delta, the London-headquartered energy giant announced on Wednesday.
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Stated-operated upstream company Petronas Carigali has awarded offshore services provider Dayang a $67 million contract to upgrade facilities in Petrogas’ Sarawak and…
READ MOREOn Monday, PBJV Group, a subsidiary of investment holding company Malaysian Barakah Offshore Petroleum, was given a letter of award from Sarawak Shell and Sabah Shell…
READ MOREOn August 1, 2015, oil storage company VTTI is to see operations begin at the second phase of its Tanjung Bin oil terminal in southern Malaysia, Reuters reported on…
READ MOREExxonMobil Exploration and Production Malaysia has commenced production from the second phase of its Telok offshore gas development project, the company announced on…
READ MOREExecutive director of the Malaysia Petroleum Resources Corporation (MPRC), Shahreen Madros, speaks to TOGY about the collaborative efforts being made to grow investment…
READ MOREManaging partner of Malaysia’s Leap Energy, Laurent Alessio, shares his perspectives on the oil and gas business in Malaysia, offers reflections on the 2015 business…
READ MOREMalaysian services company Dialog Group’s upstream division has three ongoing projects: the Balai cluster small field risk service contract, the Bayan oilfield…
READ MOREThe collapse of LNG prices has hit state-owned Petronas’ earnings hard. Riding out the downturn, Malaysia’s gas industry is focused on major infrastructure projects…
READ MOREThe president of ExxonMobil Exploration and Production Malaysia, See Kok Yew, speaks to TOGW about the evolution of Malaysia’s upstream sector and the enhanced oil…
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