Frommere production of crude for export, the country's oil and gas
industry has diversified significantly to value-added downstream
production of commodity and engineering plastics, petrochemicals
and fertilizers.ManyMalaysiancompanieshave incorporatedexciting
engineering and technological advances to emerge as service
providerswith the technicalexpertise toprovidedesignandengineering
services to global operators, especially in fabricating offshore and
onshore facilities. In fact,Malaysiahas beenexporting the services of
experienced and competent professionals and technical personnel
to oil and gas operating companies in themiddle-east and African
countries.
Although therearea few lowercostcentres in this region, international
clients prefer Malaysia due to its high quality engineering and the
easy availability of up to date technology knowledge. Local design
houses are ISO9001 accredited, meeting the international quality,
performance and capability standards. The presences of tax and
investment incentives, part of thecountry's economic transformation
program to leverage its resourcesand location tobeoneofAsia's top
energy players by 2020, further boost activities in exploration and
development.
Continued upcycle inMalaysia's oil and gas industry is expected as
PETRONAS intensifiesE&Pefforts,drivenby theneed to sustainenergy
resources while maintaining Malaysia's status as a net oil exporting
country. Looking ahead, deepwater exploration is expected to be
critical for securing future reserves.PETRONAS isaggressivelypromoting
Malaysia as a deepwater hub thus providing opportunities for
Malaysian service sector to invest and expand their capabilities.
The presence of numerous enabling factors ensure the sustainable
and long-term success of theoil andgas industry inMalaysia. Against
this backdrop, oil and gas service providers can expect to enjoy
sustainedgrowthwith increase incapabilityandexpertise for years to
come.
INDUSTRYOVERVIEW
iv
