Growing Opportunities with More Technology & Innovation
 
KUALA LUMPUR, March 22 (Bernama) -- Malaysia currently houses more than 3,000 Oil and Gas (O&G) businesses comprising oil companies as well as services and manufacturing companies that support the needs of the O&G value chain both domestically and regionally. These include those in specialised machinery and equipment for the industry. This has helped position the country as a net exporter of machinery and equipment for the O&G industry.
 
“We are encouraged that Malaysia continues to host many prominent international and local O&G companies that have made substantial investments here. Among the global players include TechnipFMC, Aker Solutions, Halliburton, Cameron International and Schlumberger. These companies have brought with them suppliers and subcontractors to invest in Malaysia and have contributed towards building up the local supply chain of Malaysian small and medium enterprises. Many domestic players are engaged in outsourcing projects such as fabrication, machining & welding, logistics, insurance and manpower supply. Malaysia has also benefited in terms of technological progress and skills development,” said YBhg. Dato’ Azman Mahmud, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) at the agency’s Country Session at OTC Asia 2018, today.
 
For just the first three months of 2018, MIDA already has RM1.8 billion worth of investments in O&G related projects in the pipeline. This shows that Malaysia continues to be a strategic location for the O&G industry players. The development of Pengerang Integrated Petroleum Complex (PIPC) will attract future investments in the industry, particularly to meet the demand for inspection, maintenance, repair and overhaul as well as plant turnover services for a large number of plants, machinery and equipment at PIPC,” said Dato’ Azman.
 
In 2017, MIDA approved another project for the Pengerang Integrated Complex (PIC), a highly integrated refining and petrochemical complex that is set to highlight Malaysia's status as a global leader in the petrochemical products industry. It is part of the 22,000 acres PIPC with current approved investment of USD27.2 billion. Once completed, PIC will provide 4,000 job opportunities for the country. MIDA continues to work with its stakeholders to develop the infrastructure and support facilities in the O&G services sector. This includes the Tok Bali Supply Base that is expected to complement other supply bases in the country and offer a cost advantage for exploration activities in the East Coast offshore. Langsat OSC is another example and will be offering an integrated industrial hub for O&G players to undertake manufacturing and services activities such as fabrication yard, factories, warehouses and open storage yard.
 
Notwithstanding these developments, the O&G industry faces challenges such as the fluctuating market condition and changing consumption patterns. Collaboration and regular engagement between the operators, services provider and relevant government stakeholders are important to address these challenges.
 
The Government is also encouraging local industry players to invest more in technology and innovation to bolster their competitiveness and sustainability to reduce operating cost, improve efficiency and increase performance. This includes remote monitoring, centralization of certain job functions, and predictive analytics for their operation.
 
“Digital transformation is a catalyst for the future of the O&G industry. It has an important role in improving business performances in the field. This transformation is all about making things better, as companies gain in efficiency, value, security, and reduces its impact on the environment. It will create new opportunities, and companies that do not shift will miss out on these new opportunities. The Government continues to intensify efforts to promote and facilitate the industry’s transition towards this shift. These include finalising a National Industry 4.0 Policy Framework and establishing a National Industry 4.0 Taskforce to spearhead the government industry 4.0 policy and strategy,” added the CEO of MIDA.
 
MIDA’s engagement in OTC Asia 2018 is part of its promotional efforts to provide first-hand information and insight on Malaysia’s plans to be the Asia Pacific hub for the O&G industry. Being the first point of contact for investors, MIDA continues to play its part in ensuring a conducive business environment for investments in the O&G industry to prosper.
 
The Country Session was moderated by Mr Cory D’Abreo Abdullah, CEO of International Investor and featured panellists from PETRONAS, ExxonMobil Exploration and Production Malaysia and DNeX Oilfield Services who are leading experts in the industry. The session, themed ‘Energy Industry: The New Direction’ was held at the Kuala Lumpur Convention Centre.
 
During this session, it was highlighted that Malaysia has the potential to be at the forefront of O&G industry’s digital development by attracting the best global talent. Additionally, investment in the O&G sector remains important to avoid shortages in the future despite growing trends toward renewable energy.
 
SOURCE : Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Puan Masni Muhammad
Director, Oil & Gas and Maritime Technology, MIDA
Tel : 03-2267 6786
Email : masni@mida.gov.my

--BERNAMA