This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/19/2018


With 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 
The chart below showcases the Malaysian and U.S. trade statistics only for the following HS Coding:
1.  8413, Pumps For Liquids, With Or Without A Measuring Device; Liquid Elevators; Parts Thereof
​2. 8905: Light-Vessels, Fire-Floats, Dredgers, Floating Cranes Etc.; Floating Docks; Floating Or Submersible Drilling Or Production Platforms and
Total Exports202,273,14695,848,933155,298,402211,883,442
Total Imports652,653,061674,315,215504,985,4461,083,501,350
Imports from the US125,889,04871,552,11051,284,568564,044,241
Malaysian Exports to the US9,942,6773,030,0992,273,1371,824,823
Exchange Rates3.283.914.154.30
Source:  Department of Statistics, Malaysia.

Leading Sub-Sectors

From 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: 

As part of Malaysia's goal to compete with the oil refining and storage hub in Singapore, PETRONAS is also constructing a major new refinery and petrochemicals complex, the Pengerang Johor Refinery Project.  This project located in the state of Johor at the southern tip of Peninsular Malaysia is anticipated to be completed in 2019/2020.

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Malaysia Oil and Gas Trade Development and Promotion