Oil, Gas and Energy

Oil, Gas and Energy

The oil, gas and energy sector has been a mainstay of Malaysia's growth and contributes approximately 20 percent of national GDP.

With the prospect of decreasing production from a maturing asset base, we will have to pursue sector-wide opportunities to reach the ambitious real annual-growth target and provide a sustainable energy platform.

 
List of EPPs
Oil, Gas and Energy
NoEPPs2020 GNI (millions)JobsLocationStatus
1.0Oil, Gas and Energy - EPP 1: Rejuvenating existing fields through enhanced oil recovery16,600-International, Nationwide Work In Progress 
2.0Oil, Gas and Energy - EPP 2: Developing small fields through innovative solutions5,500-International, Nationwide Work In Progress 
3.0Oil, Gas and Energy - EPP 3: Intensifying exploration activities--International, Nationwide Work In Progress 
4.0Oil, Gas and Energy - EPP 4: Building a regional oil storage and trading hub1,625.7790Nationwide Work In Progress 
5.0Oil, Gas and Energy - EPP 5: Unlocking premium gas demand in Peninsular Malaysia2,40427,000Johor, Melaka, Sabah Work In Progress 
6.0Oil, Gas and Energy - EPP 6: Attracting MNCs to bring their global oil field service and equipment operations to Malaysia6,124.8020,000Nationwide Work In Progress 
7.0Oil, Gas and Energy - EPP 7: Consolidating the domestic fabricators4,108.85,000Nationwide Work In Progress 
8.0Oil, Gas and Energy - EPP 8: Developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures4,028.815,000Nationwide Work In Progress 
9.0Oil, Gas and Energy - EPP 9: Improving energy efficiency13,900-Nationwide Work In Progress 
10.0Oil, Gas and Energy - EPP 10: Building up renewable energy & solar power capacity457.51,906Nationwide Work In Progress 
11.0Oil, Gas and Energy - EPP 11: Deploying nuclear energy for power generation212,3002,637 Work In Progress 
12.0Oil, Gas and Energy - EPP 12: Tapping Malaysia's hydroelectricity potential5,700590Sarawak Work In Progress 
13.0Oil, Gas and Energy - EPP 13: Increase of petrochemical outputs--  

Business Opportunities

There are a number of business opportunities in the oil, gas and energy sector, which together with the baseline sector growth will provide RM61.2 billion of GNI contribution by 2020. This amount includes a RM32.0 billion increase in GNI versus the 2009 baseline GNI due to expected increases in the oil price, given relatively low oil prices in 2009. The business opportunities can be grouped into two clear themes. Firstly, there are opportunities to secure more output from the same input as current processes are improved and efficiency gains are realised. The second theme is opportunities stemming from the increased demand for energy deriving from a growing economy.

Business Opportunity 1: Process Improvements

Global benchmarks of refining and petrochemical facilities demonstrate that significant process improvements can be expected with these types of facilities over time. These improvements typically translate into efficiency gains of 0.5 percent per year representing an additional GNI contribution of RM3.4 billion. Improvement of overall processes and structure in the electricity generation sector is expected to add RM1.5 billion of GNI contribution.

Business Opportunity 2: Economic Growth

Malaysia has targetted GNI growth of 5.9 percent per annum. Achieving this economic growth is expected to raise consumption by 3 percent and will have a knock-on effect on the oil, gas and energy sector. The increased consumption will require an additional 2 gigawatts of installed capacity to be built at a cost of RM9.6 billion, creating an estimated 2,500 jobs and adding RM11.2 billion to GNI. The additional transmission and distribution of this energy will create a further RM5.6 billion GNI and require an investment of RM12.4 billion.

In the downstream sector this increased consumption will boost GNI by RM1.5 billion and create 3,200 jobs. An estimated 90 new petrol stations will also need to be built at a total cost of RM3.2 billion.

International E&P projects present a new business opportunity that is projected to generate RM5.9 billion in GNI, requiring RM79.0 billion in private investment.

2012/03/05
Status:
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