Malaysia - Oil and GasMalaysia - Oil and Gas
OverviewWith the recent change in government after the General Election, the new government is reviewing all on-going and future projects. Despite the low price of global crude oil, this sector remain important to the country as it contributes between 20 to 30 percent to the country’s Gross Domestic Product (GDP). With over 3,500 oil and gas (O&G) companies in Malaysia, comprising both international and local companies, the multiplier effect generated by this sector is still sizable and is recognized by Petroliam Nasional Bhd (PETRONAS, the National Oil Company) and the Government of Malaysia as a strategic and priority sector.
Starting in 2015, Malaysia witnessed marginal growth in oil production and reserves, while gas production continues to decline. This continuing decline in production at Malaysia's major shallow water producing oil fields has prompted government efforts to encourage investment in Enhanced Oil Recovery (EOR) and development of marginal and deep water fields through risk-sharing agreements. Malaysia’s new reserves are found mostly off the coast of Northern Borneo between 200 to 1200 meters deep, making it more costly to extract these resources.
Malaysia’s energy security strategy has been to export its premium Tapis sweet crude oil and import low-grade oil to refine in its downstream facilities. However, Malaysia is gearing up to increase its refining capacity to become a net oil product exporter. The Pengerang Integrated Petroleum Complex (PIPC) in Johor, and Sipitang Oil & Gas Industrial Park (SOGIP) in Sabah will almost double the refining capacity nationwide from 588,000 bbl/d to 1,158,000 bbl/day.
Even with expanded LNG facilities in Johor and Sabah, Malaysia is expected to gain smaller increments or even lose market share due to fierce competition from other LNG-exporting countries within the region.
Oil and Gas: Pumps of various descriptions and light-vesseled, fire-floats and drilling/production platforms
2. 8905: Light-Vessels, Fire-Floats, Dredgers, Floating Cranes Etc.; Floating Docks; Floating Or Submersible Drilling Or Production Platforms and
|Imports from the US||125,889,048||71,552,110||51,284,568||564,044,241|
|Malaysian Exports to the US||9,942,677||3,030,099||2,273,137||1,824,823|
Leading Sub-SectorsFrom 2015 to 2018, Malysia experience a downturn in the oil and gas market; however, with the current uptrend of the crude oil prices, the sector is slowly recovering from its slump. Generally speaking, the best prospects for the Oil & Gas sector in Malaysia are in deep and ultra-deep water sustainable exploration and production. Strong market prospects include drilling tools, finishing tools, pressure control equipment, mud equipment, cementing equipment, perforating systems, multilateral well completion systems, core completion products, down-hole testing systems, blowout preventer systems, artificial lift systems, sub-sea Christmas trees, etc.
Completion fluids and perforating optimization and completion hardware geared toward maximizing recovery for justifying large capital investments in deepwater fields have market potential.Intelligent completion and control architectures, multilateral systems, sand control solutions and expandable completion systems, which ensure production maintains high levels, will also have strong potential. We also see enhanced oil recovery, high CO2 gas fields, high pressure / high temperature, deepwater, and infrastructure projects for petroleum operations. There are good opportunities for technologies and services for development of viable marginal oil fields and improved economic return of such fields. Another propect is the decommissioning of shallow water assets that will be up for retirement after 2020.
Malaysia has invested heavily in refining activities and now has nearly 539,000 barrels per day (bbl/d) of refining capacity at eight facilities fulfilling most of its demand for petroleum products domestically. Facilities are:
Kertih Refinery (PETRONAS)
Melaka I Refinery (PETRONAS)
Melaka II Refinery (PETRONAS + ConocoPhillips)
Shell Port Dickson Refinery (Petron)
Pengerang Johor Refinery (in-progress)
Kedah Refinery Project (deferred)
Perak Refinery Project (deferred)
Teluk Ramunia Johor Refinery Project (deferred)
- Association of Malaysian Oil & Gas Engineering Consultants
- Malaysia Petroleum Resources Corporation
- Malaysian Gas Association
- Petroliam Nasional Berhad
Malaysia Oil and Gas Trade Development and Promotion