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Petronas forecasts up to 50 projects for 2018-2020

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The new year brought some good news for Malaysian oil and gas (O&G) companies with Petroliam Nasional (Petronas) announcing about 50 projects between 2018 to 2020.

The national oil company said in its Petronas Activity Outlook 2018-2020 there would be about 20 greenfield and 30 brownfield projects, and out of this, all the greenfield projects will have completely new facilities developed while 10% of the brownfield projects may need new facilities.

In terms of segment prospects, 30% of the new projects will be for oil while 75% of the brownfield projects have the potential to yield more oil.

With about 100 awarded contract areas operated by 26 petroleum arrangement contractors, led mainly by the national company's E&P arm Petronas Carigali, which operates 60% of total Malaysian assets, there would appear to be quite a lot of work to go around, especially for Petronas Carigali subcontractors.

There was however also a warning that closer cost control and austerity is here to stay. The report emphasized that Petronas will continue to promote and enhance transparency in the O&G industry to ensure players are equipped with more information that can assist them with better resources as well as budget planning.

Petronas president and ceo Wan Zulkiflee Wan Ariffin said in response to the 'Lower for Longer' oil price environment, issues such as cost compression and industry collaborations are now a top priority.

"This drives a rallying call for everyone in the ecosystem to build a robust, globally competitive Malaysian Oil and Gas Services and Equipment (OGSE) industry that will sustain the market turbulence and emerge stronger," he said.

With an average production of 1.7m barrels a day forecasted over the next five years, Malaysia has a robust pipeline of potential projects focused on developing greenfield projects while maximising ultimate recovery of brownfield projects, he concluded.