“I feel that consolidation among players within the Malaysian oil and gas (O&G) industry is not happening as quickly as we would like,” Wan Zulkiflee was quoted as saying.
His comment, however, comes soon after Petronas unit MISC issued a statement denying a report that it was considering a corporate exercise to merge its floating production storage and offloading (FPSO) business with Bumi Armada's.
At the same time, Wan Zulkiflee pointed out the disparity in number of subcontractors between Norway and Malaysia, with the former having less than 20% of the 3,700 companies registered to work with Petronas.“Many (O&G) companies in Malaysia are small in size and the industry is too fragmented and inefficient,” he said, adding that Petronas has had several engagements with some of the players.
Giving the example of fabrication yard utilisation rates in Malaysia, Wan Zulkiflee said: “In our projection, there will not be enough (job) volume for all the companies in the next few years.”While there are eight fabrication yards with a capacity of 120,000 tonnes, there will be a big drop in the volume of work to just 20,000 tonnes next year.
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