MONDAY, AUGUST 19, 2019, KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) is accelerating its effort to grow Malaysia’s oil and gas sector’s footprint in Africa by spearheading an Export Acceleration Mission (EAM) focusing on the sector to two main oil producing countries in the region.
The EAM is specifically tailored to assist Malaysian companies tap into the sizable opportunities in the oil, gas and energy sector in Nigeria and Ghana. Nigeria is ranked as the largest oil producer in Africa with oil production of almost 2 million barrel per day (bbl/day) while Ghana is ranked as 7th producer with 100,000 bbl/day. This presents a huge prospect for the local oil and gas companies to supply their products or services to the industry players in Nigeria and Ghana.
The mission will be organised in Abuja, Nigeria starting today until 21 August 2019 and in Accra, Ghana from 21 – 23 August 2019.
Mr. Jai Shankar, Director of Oil & Gas, Chemical and Energy MATRADE who leads the mission said, “We believe that this mission will help to increase interest among Malaysian SMEs in the OGSE sector to explore the opportunities in Africa, which has the potential to become a major producing region in the future.” According to him, such specialised missions are ideal for Malaysian companies seeking niche but high-growth markets to enhance their export revenue.
“Furthermore, the possibility for our Small and Medium Enterprises (SMEs) to source for projects and build their visibility in developing markets are often higher,” he noted. Jai added that effort to promote Malaysian SMEs in the Oil and Gas Services & Equipment (OGSE) sector need to be amplified so the companies will have an avenue to showcase their capabilities and expertise in providing world-class products and services.
The mission involves six Malaysian companies, representing both products and services from various segments in the industry such as repair and maintenance for all types of valves, actuators, pumps and structural maintenance, manufacturer of carbon steel butt welded fittings & bends, stainless steel welded pipes & fittings, copper nickel and nickel alloy pipes & fittings. Others include supporting engineering services for upstream & downstream, hook up & commissioning for well head platform, FPSO, oil refinery, marine and offshore, mechanical construction works for oil & gas, power generation, petrochemical and renewable energy, provision of pipeline inspection services for oil & gas sector as well as water treatment and filtration system and reliability & asset integrity.
Apart from customised pre-arranged business meeting sessions, Malaysian companies will also participate in roundtable discussions with industry leaders from Nigerian and Ghanaian national oil companies.
In addition, the participants will also attend business briefings on respective Governments’ policies as well as explore opportunities specific industry sectors through engagement with potential clients in these markets.
MATRADE as Malaysia’s trade promotion organisation has observed that some of the opportunities will arise from efforts by the Nigerian Petroleum Development Company (NPDC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) to increase exploration activities as part of its target to be the largest upstream player in Nigeria. Apart from exploration, there will likely be an increase in activities related to new oil blocks exploration, processing, storing, transporting as well as marketing of oil, natural gas and natural gas liquids.
In the case of Ghana, it actively is seeking involvement of foreign companies in its oil and gas sector especially in upstream activities as reflected by the launch of its first offshore licensing in October 2018. Many Malaysian oil and gas companies have actively ventured into the Ghanaian market. Yinson Holdings, Sribima Maritime Training Centre Sdn Bhd, Lal Holdings and Investment Limited and Hyrax Oil are among the companies who have grown their footprint in the Ghanaian oil and gas industry.
“With a Government agency such as MATRADE leading the mission, we are confident Malaysian companies will be able to establish credible strategic partnerships with buyers from Nigeria and Ghana,” Jai added.
In 2018, trade between Malaysia and Nigeria recorded a substantial growth of 15.7 per cent to RM2.86 billion, compared to RM2.48 billion in 2017. Total trade with Ghana however showed a decline of 4.7 per cent to RM1.92 billion in 2018, compared to RM2.01 billion in 2017.