‘Malaysia an ideal base’

ROBUST DOMESTIC INDUSTRY: Najib urges O&G companies to consider country as strategic business partner

PRIME Minister Datuk Seri Najib Razak said yesterday the government would like to attract more international oil and gas (O&G) companies to make strategic investments in Malaysia and complement homegrown companies.

He said investors should look at the country from a wider regional perspective and consider Malaysia as a strategic business partner within the framework of Asean.

“With our domestic capabilities, we believe that Malaysia is an ideal base for businesses to expand their Asian O&G operations,” he said in his speech at the opening of the Offshore Technology
Conference (OTC) Asia 2014 at the Kuala Lumpur Convention Centre, here.

Najib said the era of innovation has led to new growth in upstream spending for the Asian region.

“In Malaysia, our capital expenditures are forecast to be almost US$60 billion (RM198 billion) over the next five years. These converging forces can create a positive environment for Asia’s O&G industry to thrive.”

He said as the country moved forward, O&G can continue to play a role in providing Asia with secure energy to power rapid development and sustainable long-term economic growth.

Najib also said the country has the perfect mix of ingredients for a regional energy hub, such as an active and robust domestic O&G industry, supported by significant resources.

He said the government’s Economic Transformation Programme (ETP) has developed targets in the O&G and energy industries to galvanise Malaysia’s upstream sector, expand its domestic downstream sector and venture into alternative energy sources.

ETP projects, he added, include rejuvenating existing fields through enhanced oil recovery, developing marginal fields and intensifying exploration activities.

“These projects provide huge opportunities for upstream players to participate in, with the strong support and backing of the government”.

He also said innovation from the country’s engineers in developing new extraction methods and identifying new fields has enabled domestic production to grow by 1.8 per cent in 2012 and a further 2.1 per cent last year.

Najib later visited the exhibition booths and mingled with trade exhibitors.

The four-day biennial conference showcases state-of-the-art technology for offshore drilling, exploration, production and environmental protection.

More than 15,000 delegates and trade visitors from more than 72 countries are attending the event.

Present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed, Petronas chairman Tan Sri Mohd Sidek Hassan and Petronas group president and chief executive officer Tan Sri Shamsul Azhar Abbas.